Lamborghini expects to grow 50% this year in Indian market: Sharad Agarwal

India is an important market for Lamborghini globally, despite the fact that of our overall sales, less than 1% is contributed by India, says India head of Italian luxury sports vehicle maker

Italian luxury sports vehicle maker Lamborghini says it expects to grow nearly 50 per cent this year in the Indian market. Sharad Agarwal, the head of Lamborghini India, talks to T E Narasimhan. Edited excerpts:

How is the segment doing?

It has been under pressure due to high tax rates. For example, the super-sports (vehicle) segment, over Rs 2.5 crore, was 100 (units of sale) in 2011 and has dropped to 45 in 2015. It again grew to 80 in 2018 but not to the extent it can grow. The main reason is a high and inconsistent tax structure. It should not change every six months. I understand that being in the super-luxury segment, we will be taxed higher than the rest. However, what we and our customers want is a stable tax regimen.

How optimistic are you about the industry’s growth and Lamborghini’s growth in 2019?

My guess is the industry would grow at 8-10 per cent, if everything goes well. We will grow at 50 per cent. Last year, the company grew over 70 per cent, to 45 units.

What factors will lead this growth?

Nearly half the volume would come from the new luxury SUV, Urus. The product has allowed Lamborghini to bring new customers into its fold. Nearly 70 per cent of buyers are first-time owners of Lamborghini; traditionally, customers used to be from the second or third generation. We are also seeing a rise in the number of women buyers for our products, specially the Urus. It has definitely changed the game for us. We used to always say that we are leader in the super-sports car segment in India but with the Urus coming in, we have set a new parameter for our performance. We also want to lead in the super-luxury segment.

This year, we will have the first full year of the Urus and also the Huracan Evo coming in. Once we have full availability of the Urus and complete supply, we should be looking at doing close to three-times (increase) in 2019, which we planned to achieve originally in 2020. The other factor is the brand’s expansion into tier-II and III cities, which used to contribute around 10 per cent four years ago. We hope these markets will contribute around 25 per cent of sales.

How important is India as a market for Lamborghini? Where is it positioned?

India is an important market for Lamborghini globally, despite the fact that of our overall sales, less than one per cent is contributed by India. Our ambition in the next five to seven years is to break into the top 10 (by vehicle sales).