Unable to travel to the world’s rich playgrounds like the Riviera and New York City, and limited in their options for fine dining excursions due to the lingering affects of the pandemic since spring 2020, high net worth individuals are now channeling their considerable wealth towards extravagant items such as exotic cars like Rolls Royce, Ferrari and Lamborghini.
A global rebound from the Covid onslaught is driving luxury automakers’ sales to new highs as order books fill with demand from a hungry clientele. The world’s richest motorists cut back on consumption as much as regular wage-earners leading to double-digit drops in sales of exotic vehicles.
But for these cashed-up individuals, who had merely postpones their purchases, it was just a matter of time until they could escape the lockdowns and leave their houses again to go shopping. The rebound actually started in the final quarter of 2020 but has only accelerated as we get further into 2021.
Yearly sales of Lamborghini surpassed 2019 numbers to reach a record 7,430 vehicles, spurred on the the Italian firm’s first-ever Urus SUV which boasts a sticker price of around $220,000.
While Ferrari sales fell by 10% to 9,119 in 2020 due to factory closures, one company spokesman says that orders have now reached record levels thanks to the popular $507,000 SF90 Stradale and new $222,000 Roma. The Prancing Horse brand expects to clear 10,000 sales next year when it finally launches an SUV.
Speaking of SUVs, Aston Martin recovered from a precarious position last year thanks to sales of its first-ever SUV, the DBX.
Then you have the ultra-high price extreme end of the exotic brand spectrum. At last week’s launch of the 19-foot long Rolls-Royce Boat Tail, a super-luxury coupe rumored to cost around $28 million, company CEO Torsten Muller-Otvos, said that, “Coachbuilding is back at the British brand. Only the House of Rolls-Royce can offer its Coachbuild clients the inimitable opportunity to commission a product of future historical significance, that is as fundamentally unique as they are – and then participate in every detail of its creation.”
He also added that “there is some pent-up demand out there and quite some money around to be spent.” Rolls Royce recorded its best-ever quarter in early 2021 driven by sales of the New Ghost coupe and Cullinan SUV, and production for this year in already fully booked.
According to Muller-Otvos and reinforced by spokespeople from Ferrari and Lamborghini, Europe and the U.S. are showing positive sales expansion, but it is in China where the largest growth can be found. And with the frequency of millionaires growing each year in the region, that upward trend is expected to endure.