Supercars, the ultimate dream for many an automobile enthusiast, generally grow in tandem with any developing nation’s economic growth. It should come as no surprise then that 2018 was the peak year with 320 units sold, across brands. It went to 265 the following year and declined further to 185 in lockdown-ridden 2020. It is a bit of a surprise then that Lamborghini, already a leader in the ‘super car’ segment in India of late, has doubled its sales in H1 2021.
Lamborghini sold 26 cars in the April 2020-March 2021 period, doubling from 13 vehicles in the corresponding period in the previous year. This also matches its trends in global sales in H1 2021, when it sold a record 4,852 cars – a 37 per cent increase over the same period of 2020.
No wonder then that Sharad Agarwal, country head, Lamborghini India, is optimistic as he launches the latest model, the track-focussed Lamborghini Huracán Super Trofeo Omologata (STO). “We had been growing since 2012,” he says. “The super luxury segment has seen a lot of ups and downs. Year 2020 was the only aberration where we declined. We were hit by challenges on the supply side and demand side. In 2021, looking at how we have done in H1, we are confident it will be a record year. We are the market leaders in the super luxury segment and constantly working towards strengthening our position further.”
Built for the track
The STO is designed to bring the feel and technology of a genuine race car in a street legal model, says Agarwal. “Our engineers have been able to develop a true racing car that can be used on the road and at the same time give them a feel of a race car. It is designed for track purpose.”
The STO is inspired by the racing heritage of Lamborghini Squadra Corse’s Huracan Super Trofeo EVO race series. With a lightweight hybrid chassis made from aluminium and carbon fibre, it is capable of accelerating from 0-100 km/hr in three seconds and has a top stated speed of 310 kmph.
“We see a potential for double digit sales in the country,” Agarwal says about the STO. “These cars are not just about speed but also about the driving experience, the sound, the emotions. Even in cities, where there are speed limits imposed by the government, people are able to enjoy these cars in everyday driving conditions. Our cars have three driving modes – Strada, Quarta and Sports. The Strada mode is meant for street driving.”
While the current availability of race tracks is limited, admits Agarwal, he points out that new tracks are coming up. “We have two race tracks in the country – one of which is FIA grade. A new test track has opened in Indore. Other tracks are under construction. What we have seen in the past few years is that experiencing these cars in the track environment has been growing in the country. That is where you can enjoy the extreme performance from the sports cars which they are designed for. A lot of programmes are driven by OEMs, while private clubs are conducting programmes where customers can join together and race their cars in the race track environment. What gives us confidence about this is that there are customers who are keenly interested to know more and now experience the car because they want to make it part of their fleet, enjoy it.”
The car is priced at Rs4.99 crore ex showroom. Customers do end up paying more usually. “When people are buying Lamborghini, they are not buying Lamborghini, they are buying their own Lamborghini,” explains Agarwal. “They like to personalise the car as per their preferences. They want to give it an extension of their personality. They make up to 20-25 per cent of the value of the car as an investment in the customisation of the car. Then on road taxes could go up to 20 per cent in India.”
Fast growth
Agarwal credits two ‘pillars’ for the success of the brand in India. “We are working on key strategies to grow our market. We plan on how to bring the new models faster to the country. We want our customers to have the new models around the same time that we start delivering in any other part of the world. India was among the top five markets to launch the Urus in 2018. Next year, India was the first market to launch the Huracan Evo after the global launch. We are also trying to bring the exclusive Lamborghini to the market. We delivered the Aventador SVJ 63, one of the only 63 cars in the world to the market as we want to show our long-term commitment to the market.” Currently, there are 300 plus Lamborghinis in India, he says.
We are working on key strategies to grow our market. We plan on how to bring the new models faster to the country. We want our customers to have the new models around the same time that we start delivering in any other part of the world
Another pillar is to bring bespoke experiences so they can enjoy their Lamborghinis in the Indian environment, he says. “One of the challenges is that while people do have the aspiration to own a Lamborghini, the question they have is where do I drive the car? We have a Lamborghini Day, where we create unique experiences for our customers by inviting them from across the country. They can enjoy driving their Lamborghini around the city. We have another platform called Lamborghini Giro, by which the customers can drive their cars on the best highways. In 2019, we arranged a drive from Bengaluru to Ooty – 600 km in three days. This gives them an experience of driving the cars on Indian highways and gives them an opportunity to connect with people with the same dreams and passions.”
The market for the super car in India is expanding, says Agrawal. “We have witnessed exciting trends in the last four to five years. Till 2015, the demand was largely concentrated in metros. Today, more than 25 per cent of our business is coming from Tier I and Tier II cities. Today, you can see a Lamborghini in Ludhiana, Chandigarh, Guwahati, Bhubaneswar, Salem… Also, earlier the demand was coming from the third generation or fourth generation businessmen. Now, more and more first generation are also coming. There are also women who are buying Lamborghinis. We see interesting patterns emerging in terms of new customer segments and geographies – indicating a huge potential of growth.” With Ferrari and Bentley also present in India and McLaren about to make its debut, the market might just expand.
The challenges to grow the super car market seem to continue. “One of the big challenges to grow the luxury end segment is the taxes and duty structure,” rues Agarwal. “Apart from the highest slab of GST, there is also a 20 per cent luxury tax, which makes the pricing very high. The customer also pays the registration tax, which could also go up to 20 per cent. In the past there have been inconsistencies, including frequent changes in tax structure which impacts growth. A second challenge is the condition of infrastructure in the cities, though a lot of progress is happening in parts of the country. We cannot change the density of population in the country. The challenge is to have consistency in structure, policy and taxation.” Well, if its H1 numbers are an indication, the customer is willing to engage nevertheless.