For most people, dropping $600,000 on a car seems unfathomable — the exorbitant price is more than ten times what the average American worker brings in during one year.
But the luxury car market has been going strong despite a looming recession and the rising cost of many of the materials that go into making them.
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At the start of 2023, Volkswagen-owned (VLKAF) Lamborghini released numbers showing that it sold a total of 9,233 cars globally in 2022 — a 10% increase from the 2,721 it delivered in 2021.
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The strong demand comes just as the luxury Italian automaker prepares to launch its first hybrid supercar known as the Revuelto.
The Italian word for “turned” or “scrambled,” the Revuelto is part of Lamborghini’s push to join the hybrid world and eventually turn their cars, known for ultra-powerful engines, electric.
The 217 mph and 12-cylinder V12 engine push the plug-in model to its capabilities and are particularly attractive to those in the luxury car market. According to Lamborghini chief executive Stephan Winkelmann, the Revuelto now has a two-year waiting list despite a launch date that is not expected until late 2023 or early 2024.
“The resilience of our customers, with everything that is happening in the last 24 months is incredible,” Winkelmann told CNBC. “We don’t see any slowdown in order intake for buying cars like ours.”
While a market price has also not yet been set, Winkelmann had previously said that the Revuelto would cost approximately 500,000 euros ($549,600 USD as of April 2023) and could easily top $600,000 even without additional customization.
But despite the high price, there has been a major rush of interest around the first Lamborghini hybrid and orders have been coming in faster than the luxury automaker can get them ready for the official release date.
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“The team worked hard on this car for years,” Winkelmann said. “The reception of the customers is positive in two ways, because on one hand side they recognize it’s a true Lamborghini and on the other side there is no fear about having a hybridized car.”
Lamborghini has not been the only ultra-luxury carmaker to see a rush of orders. In January 2023, Rolls-Royce (RYCEF) also hit a milestone unseen in its 119-year history — the 6,021 cars that sold in 2022 set a record and was an 8% increase over 2021.
Ferrari (RACE) also delivered a record year with 13,221 sold vehicles and 939 billion euros ($1,024 billion USD) in profit. Those numbers were at 11,155 cars and €833 million ($909 million USD) in 2021.
Despite slower spending in many other sectors of the economy, sales of luxury goods were 22% higher around the world. Along with vehicles, sales of everything from art and high-end wines to luxury handbags has been on the rise in the last 12 months.
"Consumption is back at pre-crisis levels, but it is also a rebirth, since there is a new consumer base that is younger, and some pockets of consumers that have been unlocked during COVID are here to stay and growing,” Claudia D’Arpizio, a partner at investment firm Bain Capital and the lead author on a study on the subject writes.
