Lamborghini bucks softness in luxury market with record first-half results
Lamborghini's mix of appealing design and electrified powertrains are resonating with luxury buyers.
Italian luxury automaker Lamborghini delivered stellar results in the first half of 2024 despite a subdued selling environment for high-end automobiles and luxury goods in general.
Lamborghini, part of Volkswagen's (VWAGY) Audi Group that includes Audi, Lamborghini, Ducati, and Bentley, reported record revenue of 1.6 billion euros ($1.762 billion) for the first six months of 2024, a 14.1% jump from a year ago. Operating profit hit another record of 458 million euros ($495 million).
Lamborghini delivered 5,558 cars in the first half, another all-time high, powered by sales of the Revuelto hybrid supercar, outgoing Huracán two-seater, and the Urus SUV that now comes in hybrid SE trim.
Lamborghini was one of the more aggressive exotic automakers that outlined a plan for electrification. The company’s original “Direzione Cor Tauri (Heart of the Bull)” program, first announced in 2021, promised an “electrified” version of each of the company’s vehicles, with its first full EV, the Lanzador, coming in 2028. Yahoo Finance had the chance to drive the concept Lanzador late last summer.
“We are going through a pivotal phase, supported by the largest investment in the company's history, with the main objective of expanding our product offering,” Lamborghini CEO Stephan Winkelmann said in a statement on Monday regarding electrification. “This process demands significant resources, yet these efforts are essential to sustain our growth and ensure that Automobili Lamborghini continues to innovate and lead in the luxury super sports car sector.”
Lamborghini’s electrified products, such as the Revuelto hybrid and Urus hybrid, have been well received by the market, with the Huracán successor, another hybrid, on the way. The Revuelto’s wait list has reached two years, Lamborghini said, with the Urus SE having one full year of production already spoken for.
Clearly, Lamborghini customers have accepted hybrids, and sales are rising.
“[Hybridization] was difficult to be accepted maybe five years ago for a super sports car manufacturer like us,” Winkelmann told Yahoo Finance back in April, adding that in the here and now, buyers have embraced a hybrid future.
“So the hybrids are ‘digested’ [by buyers] because we promise more performance and less CO2 emissions.”
Lamborghini’s sales success so far in 2024 comes as rivals have seen some softness. Aston Martin reported first-half deliveries that fell 32% globally, with revenue down 11%. Porsche reported first-half sales that slipped nearly 5% and deliveries that fell nearly 7%.
Luxury goods conglomerate LVMH reported softer sales as well, and even the king of luxury watches, Rolex, might be seeing demand cool in the market.
Nevertheless, Lamborghini’s mix of flamboyant design, extreme performance (even with electrification), and allure of exclusiveness is seemingly translating into sales success.
Lamborghini’s main rival, Ferrari, is set to release its results on Thursday, and whether the Maranello-based automaker can top Lamborghini, headquartered only a couple hours away in Sant’Agata, is a big deal in the car-crazy country.
Ferrari is expected to report second quarter revenue of 1.618 billion euros ($1.82 billion), with adjusted EPS coming in at 2.05 euros ($2.22), with EBITDA (earnings before interest, taxes, depreciation, and amortization) of 648.91 million euros ($195.8 million), per Bloomberg.
Bloomberg Intelligence estimates that Ferrari will pull in a whopping 181,000 euros ($195,800) EBITDA per vehicle, over five times more than Porsche.
Pras Subramanian is a reporter for Yahoo Finance covering the auto industry. You can follow him on X and on Instagram.
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