Millions of vehicles are sold globally every year. We often analyse automakers’ profits, losses and growth patterns. One parameter that is overlooked is net profitability per unit. Select carmakers like Toyota and Volkswagen continue leading global sales charts in terms of sheer volume but with respect to profits per unit, Ferrari leads the pack.
The Italian marque is in a different league altogether, ahead of most carmakers. According to a report by Fiat Group World, Ferrari sold 10,131 units in 2019, setting record results in terms of sales figures. The Italian marque had an operational profit margin of 23.2 per cent per unit sold, which translates into profits of more than EUR 86,000 (Rs 66.82 lakh) behind every Ferrari supercar.
BMW sells 30 units to earn as much profit as one Ferrari while Toyota catches up after selling 44 units. The gap between other carmakers is even higher. Brands like Volvo (45 units) Volkswagen (56 units) Group PSA (65 units) Mercedes-Benz (67 units) need to generate significant volume to match Ferrari’s single unit profitability. Renault, Hyundai and Kia need to sell 122, 135 and 155 units while Ford and Nissan attain similar profitability after selling over 900 units each.
Numbers apart, Ferrari continues performing well despite the slump in the auto industry due to its adoption of new technologies, its ability to adapt to different market situations and an impressive marketing department. Moreover, Ferrari achieved this despite lacking an SUV in their current portfolio. The brand’s Purosangue SUV is expected to hit showrooms next year and it would further strengthen Ferrari’s market position.
Source: Fiat Group World