Business News
Ferrari banks on ‘super rich’ for sales
Firm sells about 25 cars in India compared with the 700 sold in China this year
Italian sports car manufacturer Ferrari N.V. isn’t fazed by its small India sales numbers but is instead eyeing the market’s growth potential.
“Despite its relatively small size, the Indian market has great potential,” said Dieter Knechtel, chief executive officer, Far East & Middle East, Ferrari.
The company sells about 25 cars a year in India from its two dealerships in Mumbai and Delhi. This compares with 700 cars sold in China during this year.
New customer segments
“This is a country where we can find lot of wealth and new segments of customers coming in. We have [a] good feedback from our clients and this market can be grown,” he said.
Over the years, Ferrari is estimated to have sold about 150 cars in India out of a total two lakh cars produced by the company in the last 70 years. Though sales volume in India is relatively insignificant, Ferrari is investing here to ensure customer satisfaction and constant supply of its latest models.
“We have ensured service facility and spare parts availability for the convenience of our customers. We have many more plans for the future. This is the starting point. When we look at the future, things are changing for the better. Regulations and taxation systems in India are changing. Transparency is kicking in and we expect sustainable growth here,” he added.
He said the company was not very keen on sharp volume growth in India, as it is still a relatively young market for sports cars.
“Frankly, we are not looking at any particular volume. It is not important for us. Our main objective is to take care of our existing and new customers,” said Mr. Knechtel. He said Ferrari had resolved to maintain its leadership position in the sports car market and viewed the future with optimism.
The U.S. is the single biggest market for Ferrari. For 2017, it has targeted to produce and sell 8,400 cars, 4% more than last year.
The company has lined up a huge celebration in Mumbai to mark its 70th anniversary. More than 20 Ferrari cars from Mumbai, Pune, Hyderabad, Goa, Ahmedabad, Bengaluru and Chennai will be driven to the heart of the city on Sunday to mark the occasion.
