Even though Ferrari has surprised locals and strangers with its good economic results despite the coronavirus crisis, many investors believe that the legendary Italian sports car manufacturer is slowly losing its appeal. However, others believe that the brand’s sales could increase thanks to electrification and SUVs markedly in the long term.
According to Morgan Stanley analyst Adam Jonas, Ferrari could enter a new phase of growth thanks to the current technological transition towards electromobility, which will see the market for luxury vehicles expand much faster than expected. Thus, it is estimated that Ferrari’s annual sales could double to more than 20,000 units by 2030, doubling again to more than 40,000 by 2040.
In 2019 Ferrari sold 10,131 sports cars, 9.5% more than the previous year, something that was possible thanks to the excellent commercial performance of the Portofino and 812 Superfast. In 2020 a fundamental model was added to the range, the acclaimed Roma, a Berlinetta located at the bottom of the Italian manufacturer’s offer. We also cannot lose sight of the launch of the SF90 Stradale, its first plug-in hybrid.
However, Ferrari’s real paradigm shift will come from the hand of the Purosangue, a sporty SUV with hybrid mechanics that is expected to produce some 1,500 units per year by 2025. This model, considered by the Tifosi as an affront to the legacy of a brand that has never created a model of more than two doors, will be the main thing responsible for Ferrari’s growth.
Morgan Stanley also believes that the transition to electric cars will completely transform the Italian brand. Although in 2025, only 3% of Ferrari’s sales will correspond to electric models (which leads us to think that it will start by launching small runs of its first model of this type), by 2030, they could represent 20%, as well as 50% by 2040. The use of electrical mechanics will increase the profit margin and attract a greater variety of customers.
“We expect that the transition to electric vehicles will be a turning point for the company, as it will require significant investments in the short term, but we believe that it will pay off from the perspective of return on invested capital and that Ferrari will be able to obtain margins higher while attracting an even wider customer base and bringing new generations to the brand.”