Reference Auto

Sports car giant Ferrari is all set to race into India with some of its iconic cars in the next six months, and with its brand being one of the world’s most prestigious, the auto giant is likely to see car buffs make a beeline to book their wonder car. In other words, Ferrari’s name is enough for it to generate substantial sales right from the start.

The models will be priced from Rs 1.5 crore onwards and the ones that will come into India include the California (one of which is owned by Ratan Tata), the 458 Italia, the 599 and 612. The cars will be directly imported to India and thus attract duties of around 110%. The cars will come in as completely knocked down units.



The Ferrari California, one of which is owned by Ratan Tata

Ferrari, which belongs to Fiat, can hope to surge ahead of rivals Porsche and Lamborghini (which are already present in the Indian market) may be within a couple of years after its entry. Ferrari will come to the country in early 2011 and India will be its 58th market.

Ferrari will not have any tie up with Tata Motors, which is Fiat’s Indian partner and will make its entry through the direct import route.

The Italian sports car giant will appoint a dealer either in Mumbai or Delhi. Seeing the response, the car maker may weigh the option of spreading its wings across other Metros as well.

Director of Porsche India Ashish Chordia said the entry of Ferrari will help see the market for ultra-luxury cars grow further. “The market has matured and is growing at a very fast pace. New cars will help spur demand further. The economy is registering a healthy growth and people are open to buying luxury cars.”

Other luxury liners in India are also hoping to rake in the moolah. Porsche expects sales to go up by more than twice this year. It has already sold 269 cars till October this year as compared to 94 sold in the entire year of 2009.

India’s high net worth individuals (or people with over a million-dollar income) surged over 50% in the last one year and Ferrari may be finding its models being lapped up in big numbers by these people. But one deterrent is that India’s city roads remain clogged and its road infrastructure in shambles. So, how suitable Ferrari’s sports liners are going to be is very difficult for us to say.

Moreover, the 110% import duty may come as a slight bump for Ferrari in the super luxury category, even though this market is not so price sensitive.

Ferrari’s revenues for the third quarter of this year stood at euro 446 million, which is 12.6% higher as compared to the same period in 2009.

Trading profit was healthy, registering a growth of 46% at euro 76 million. This result is mainly due to higher sales, steady progress in the personalisation programme and the sustained efforts to increase efficiency in all areas of the company, which includes the manufacture of racing cars.

So, with these numbers behind, Ferrari can line up big plans for India.