Not everybody’s in the green car race, as Ferrari posts record profits
You’d be forgiven for thinking the whole world was making the switch to electric vehicles with the recent announcement of plans in the EU (and our very own ACT) to phase out the sale of petrol and diesel cars by 2035. With Ferrari posting record quarterly profits, it seems like that’s not always the case.
The Italian luxury sportscar manufacturer saw a 29% increase in sales in the June quarter. Only 17% of the Ferraris sold were hybrid electric cars, with the rest being standard combustion engines.
Could this uptick in sales for brands like Ferrari, Bentley and Lamborghini - also recording record profits - mean the market for luxury cars is booming?
Ferrari and BP show support for green car movement
These luxury car makers have taken notice of the rise of the EVs and the important role they play in the conversation.
Ferrari has made the promise that 40% of its vehicles will be electric by 2030, with another 40% to be hybrid.
Fuel giant BP has diversified to include electric charging alongside its petrol refuelling stations.
The widespread rollout of electric charging compatibility at these venues is critical to supporting the demand for EVs, specifically as we move into an energy crisis. Their network of charging points has doubled in the past year.
Ferrari has also highlighted its investment in renewable energy, installing solar panels and alternative power sources to their factories and committing to carbon neutrality. This is an important step, with Italy unable to secure exemptions from the EU’s overall move to ban the sale of new petrol vehicles by 2030 for their sports car industry.
Many luxury car manufacturers, rather than committing 100% to the move towards electric vehicles, are dedicated to finding alternative power sources and new solutions for energy efficiency.
Who is buying luxury cars right now?
The record growth was driven mainly by soaring demand in the US and China. Speculated post-pandemic splash out spending has led to a 19% increase in supercars registered to UK addresses, as reported by UHY Hacker Young.
Now able to leave the house and free from restrictions, a new car is a tempting purchase. With international travel subject to so much change and home loan repayments soaring, a sports car feeds the thirst for adrenaline, adds a hint of luxury and gets you from point A to point B. Of all the places to put money, it’s unsurprising that the big names in luxury motors are pulling in high level profits.
While these figures can be hard to reconcile with the rising cost of living and the everyday impacts of inflation , it seems that there will always be a demand for the finer things in life - fast cars, nice houses, eye-catching outfits.
If you’re looking to get yourself a new car - luxury or otherwise! - check out our picks of Mozo’s best car loans and our complete guide to vehicle finance .