Lamborghini is on track for growth, however, higher taxes are restricting the expansion of India’s luxury car market, Chief Executive Officer Stephan Winkelmann said.
“India is a market for us that is on its way to expanding as the maximum markets we have in the world,” Winkelmann said in a virtual interaction.
However, when asked what restricts the expansion of luxury car sales in the country, he said: “If we get to the details of the Indian market, it is transparent that the Indian market has, like other high-tax markets, a restriction. “that’s all we want to understand, if we take a look at what’s in India.
Lamborghini sells a diversity of super-luxury cars with costs starting at ₹3. 16 crore in India. The Italy-based automaker recorded its sales in the country in 2021 with 69 units, breaking its previous record in 2019 when it sold a total of 52 units.
Currently, cars pay a 28% GST tax with an additional tax ranging from 1% to 22% depending on the type of vehicle. length and load of the engine, with the price of insurance and freight (CIF) less than or greater than USD 40,000.
Regarding the effect of the global economic slowdown, he said that while India is a mass market “in the sense of population,” Lamborghini sells less than a hundred cars a year.
“So, it’s not really a great replacement, even if the economy slows down in India, we’re going to see what happens, but right now we don’t see any negative effects on our brand,” Winkelmann added.
Globally, in the January-September 2022 period, Lamborghini recorded an 8% increase in deliveries to 7430 games per year.
“We have an order book that already covers the first quarter of 2024, which paints us calmly, waiting attentively for the demanding situations that await us in the future, such as the first step towards hybridization from 2023,” he said.
(With PTI inputs)
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