Ferrari is on track to reach a record €1bn (£766m) profit in 2017 as the world’s wealthy purchase more supercars than ever before.
On Thursday, the company’s chief executive, Sergio Marchionne, said that the adjusted profits of Ferrari for this year’s first nine months were up 24 percent and that the firm was on track to meet its €1bn annual profit target two years before the actual target period.
Ferrari, which unveiled a new racetrack-only FXX K Evo hypercar this week, has sold around 6,381 cars so far in 2017, a 5 percent increase during the same period in 2016.
The strong performance of the company follows that of other luxury car brands as the demand for the most expensive limited edition models rises.
According to research by Bloomberg Intelligence, worldwide sales of Ferraris, Bentleys, McLarens, Rolls-Royces, and Lamborghinis have collectively grown by 51 percent over the past five years. The five brands sold around 30,000 cars between them in 2016.
Currently, there are 36,220 supercars that are registered on the roads of the United Kingdom, a 40 percent increase since 2013, according to an analysis of Driver and Vehicle Licensing Agency (DVLA) data by Motorway.co.uk, a car website.
The rise in high-end car sales comes as the overall car market of the United Kingdom is on course for the first annual drop since 2011. In September, new car registrations declined by 9.3 percent, the first time that crucial new numberplate sales had decreased in six (6) years.
The Society of Motor Manufacturers and Traders blamed the decreasing consumer confidence over Brexit for the decline.
The director of Motorway.co.uk, Alex Buttle, stated: “While many of these cars head overseas, our research shows that lots are being bought by wealthy UK customers, so don’t be surprised to see more Bentleys, Aston Martins and Ferraris parked up on double-yellow [lines] in years to come.”
This week, the British luxury car dealership, HR Owen, reported a 78 percent increase in pre-tax profits to £2.9m in sales. Up 20 percent to £428m in the year to April 2017. The dealer, the largest retailer of Bentley, Bugatti, and Rolls-Royce brands in the world, sold around 1,306 new prestige cars, a 33 percent increase over the past year. Secondhand car sales also rose from 1,764 to 1,849.
The increasing appetite among wealthy people for luxury cars comes as research reveals that the super-rich holds the greatest concentration of wealth since the United States’ “gilded age” at the turn of the twentieth century when families such as the Rockefellers, Vanderbilts, and Carnegies controlled huge fortunes.
According to the UBS/PwC Billionaires report, billionaires raised their combined global wealth by nearly a fifth in 2016 to a record $6tn (£4.5tn).
Ferrari has set out plans to offer more limited edition models in 2017 to celebrate its 70th anniversary. Since the company floated on the stock market two years ago, the shares of the company have more than doubled.
Nearly 80 percent of Rolls-Royce cars are currently customised to buyers demands, which adds an average of 20 percent to the sale price.