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Reasons behind boom in supercar sales

IFM_Ferrai sales growth-image
Ferrari’s net orders hit a new high in the quarter indicating high demand, leading to a 22% rise in net profit to €251 million.

Luxury car maker Ferrari reported its record quarterly sales and profits recently. Thanks to the supercar sales boom in China and America, their net profit has witnessed good growth.

The company posts record profits after Lamborghini and Bentley. Ferrari said shipments rose 29% year-on-year to 3,455 units in the three months to the end of June.

Ferrari said sales were driven by the Portofino M and F8 family models, with total car deliveries to China, Taiwan and Hong Kong more than doubling from 166 to 358 year-on-year and up 62% to 1,053 in the US.

Ferrari’s net orders hit a new high in the quarter indicating high demand, leading to a 22% rise in net profit to €251 million (£210 million), while revenues rose by a quarter to €1.3 billion.

Gabriel Adler, an analyst at Citi, said, “Ferrari is selling more cars than ever before in its history.”

The company seeks to offset a drop in revenue after sales of the more than €1 million limited-edition Monza SP1 and SP2 models ended.

Almost a fifth of its revenue from selling cars — slightly less than €200 million — came from personalised features, ranging from customers adding a Ferrari crest to the side of their car, to highly coloured brake pads.

Ferrari CFO Antonio Picca Piccon said the personalisation rate across all models had been “quite high,” and that the forecasts were “extrapolating based on what we see in the current order portfolio”.

The Italian sports carmaker raised its forecast for full-year revenues and profits after reporting a record second quarter.

Ferrari CEO Benedetto Vigna said, “The quality of the first six months and the robustness of our business allows us to revise upward the 2022 guidance on all metrics.”

Foreign exchange movements, which added €37 million to its profits in the quarter, were also a factor in the decision to raise annual targets.

In its latest quarterly update, vehicles with traditional internal combustion engines accounted for 83% of deliveries, while hybrid models represented just 17% of shipments.

In June, the company unveiled plans to make 80% of its models electric and hybrid cars by 2030.

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