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2
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· Posted on
February 21, 2024

Ferrari is finally rolling out an SUV because other luxury carmakers are lying on huge piles of SUV-cash

In the past, Ferrari would never follow other luxury car markers by creating an SUV... but now it's changed its mind.

What's the key learning?

  • Ferrari has never created an SUV in the past, despite the fact that others like Bentley, Rolls Royce, and Lamborghini have produced them
  • 40% of vehicles sold around the world are now SUVs and it's even higher in the luxury car market
  • Striking the balance between a strong brand and following market demand is an ongoing challenge for all companies looking to grow their revenue

👉 Background: Ferrari is the Italian sports car marker that is arguably the crème de la crème of the sports car market. Its F1 racing team has the most Constructors’ titles. And its cars are pretty hard to come by (and exxy). In fact, only 194 of its cars were sold in Australia last year.

👉 What happened: Back in 2017, Ferrari would never 'follow' other luxury car markers by creating an SUV - despite the fact that others like Bentley, Rolls Royce and Lamborghini have produced these babies.

👉 What else: But now, in a bigger 180 than JLo and Ben Affleck, Ferrari has announced that it will be releasing an SUV... but just don't call it that.

What's the key learning?

💡Striking the balance between a strong brand and following market demand is an ongoing challenge for all companies looking to grow their revenue.

💡Ferrari is a powerhouse of a brand - it has a Brand Strength Index (BSI) score of 94.1 out of 100 - well ahead of any other carmaker.

💡But 40% of vehicles sold around the world are now SUVs and it is even higher in the luxury car market. Last year, 60% of Lamborghini’s sales were from its SUVs. So Ferrari is following the crowd to bank some juicy SUV-revenue.

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