How high-end SUVs are shaking up ultraluxury sales

Ultraluxury automakers are gambling that they can keep their exclusivity while increasing production and breaking into new market segments such as SUVs.

High-end brands such as Ferrari, Aston Martin, Bentley, Lamborghini and Rolls-Royce are shifting away from the body types that have defined their brands -- Lamborghini with two-seat supercars, Aston with fast touring coupes and Rolls-Royce with sedans – into growing segments such as SUVs.

"They have learned how to evolve," said Felipe Munoz, global analyst for JATO Dynamics market researchers.

The brands are expanding globally to win customers among the growing numbers of super-wealthy in markets such as China but Europe mean is still an important market.

Total European sales for Aston Martin, Bentley, McLaren, Ferrari, Lamborghini and Rolls-Royce -- as well as smaller rivals such as Bugatti and selected models such as the Audi R8 supercar grew 11 percent through August to 11,069, according to JATO. That is up from just under 10,000 in the same period last year.

Sports cars still accounted for 8,537 of those 11,069 sales, led by the Ferrari 488. But SUVs accounted for 1,201 sales, beating sedans, thanks to Bentley's Bentayga, which finished second in the top 10.

Aston Martin is the most dependent on Europe, which accounted for 53 percent of sales in 2017. At Ferrari, 41 percent of sales were in Europe. For Bentley it was 35 percent, 33 percent for McLaren, 26 percent for Lamborghini, and 22 percent for Rolls-Royce.

SUV surge

The number of SUVs in the segment, which Automotive News Europe refers to as exotic, will increase as new models arrive.

Lamborghini has just started selling the Urus, and Rolls-Royce will begin sales of the Cullinan by year-end. By the end of 2019 Aston Martin will have begun deliveries of the DBX SUV, while Ferrari will wait until 2022 to launch its recently announced Purosangue SUV. Even Bugatti has indicated it might develop an SUV.

Only McLaren has steadfastly refused to launch a high-riding car. "I'm not against SUVs. They are just not what McLaren does," CEO Mike Flewitt told Automotive News Europe earlier this year.

It's not just SUVs the ultraluxury brands are expanding into. Aston Martin has said it will launch a mid-engine supercar to take on Ferrari and McLaren for the first time in 2020, and a year later will unveil the first model from its Lagonda all-electric range to compete against Rolls-Royce and Bentley.

Lamborghini has said it will launch a 2+2 sports tourer to rival Aston Martin and Ferrari for the first time since the Espada in 1968. The new Lamborghini is expected between 2025 and 2027.

The ultraluxury product push has resulted in ambitious sales targets. Ferrari has abandoned its self-imposed cap of 7,000 annual global sales, recording 8,400 last year. The SUV could push its annual volume to 14,000, analysts believe.

The Urus is expected to double Lamborghini sales to 7,000 and could even push it above 10,000 for the first time. McLaren is also predicting a doubling of sales to 6,000 by 2025.

Aston Martin meanwhile believes the DBX will help propel it past 10,000 global sales by 2021, almost double last year’s figure, and on to 14,000 in the midterm. Growth could be capped at that point, Aston Martin CEO Andy Palmer told Automotive News Europe earlier this year. "There is a volume limit to every brand if they want to remain rare and exclusive," he said.

Mercedes, Audi up their games

The big six are being challenged by the premium brands, particularly Mercedes-Benz, which has seen a healthy demand for its Maybach trim level on the S-class sedan.

Maybach variants now account for 4 percent of S-class sales, with 452 sold in the first eight months across Europe. This is despite a starting price of 144,638 euros in Germany for Maybach compared with the 85,769 euro base price for the standard S class.

Earlier this year Mercedes showed a concept for a Maybach SUV, suggesting it is willing to expand the brand after failing to gain traction with a stand-alone sedan in the previous decade.

Mercedes' success with Maybach has persuaded Audi to follow suit by selling Horch versions of the A8 large sedan, Automotive News Europe reported in September. Horch was a successful luxury brand in Germany in the 1920s and 1930s.