Ferrari: Rarity and Innovation Drive Ultra-Luxury Growth (2019-2025)

Administrateur
Jun 14
5 min read

Since its 2015 IPO, Ferrari has become one of the most coveted names in the luxury-automotive arena. Between 2019 and 2025 the company raised deliveries from 10,131 to 13,752 cars and almost doubled revenue to €6.68 billion in 2024. That trajectory contrasts sharply with the post-COVID slowdown that hit most premium brands. The secret lies in a business model built on rarity, a constantly renewed product portfolio and a carefully sequenced move into electrification.

Activities: A Diversified Ecosystem around the Dream Car

Ferrari’s core business is the design and sale of ultra-high-performance sports and grand-touring cars. The 2025 line-up features nine ICE or hybrid series models, limited “Special Series” and heritage-inspired “Icona” editions. Automotive revenue—new cars, spare parts and ultra-bespoke personalisation—remains dominant, with more than 25 % of buyers now using the “Tailor Made” service that commands gross margins above 70 %.

Three additional pillars orbit that core:

Sponsorship & Racing – The Scuderia in F1, the WEC team and commercial rights provide recurring cash and global visibility.
Brand Lifestyle – Licences (fashion, leather goods, video-games), museums, theme parks and mono-brand stores translate racing DNA into immersive experiences.
Financial Services – Custom leasing helps customers fund configurations that often exceed €500 k and deepens loyalty among HNWIs.

Despite this diversification, more than 80 % of sales still stem directly from auto activities, preserving a crystal-clear luxury message.

Markets: Worldwide Demand Managed by Drip Feeding

Ferrari operates 178 dealers in 52 countries yet tightly controls regional allocations, keeping waiting lists at 12-24 months. In 2024 deliveries split as follows:

Americas – 34 % thanks to buoyant US demand and a strong dollar.
EMEA – 41 %, led by Germany, the UK and home market Italy.
APAC – 25 %, including 8 % from mainland China, whose quota is capped to avoid brand dilution.

Private events—Cavalcades, track days, XX Programmes— reinforce exclusivity and justify steadily rising transaction prices.

Shareholding: Stability with Flexibility

Capital is anchored by Exor (~20 %) and the Piero Ferrari trust (~10 %). Double-voting rights give Exor nearly 30 % of the votes, ensuring strategic continuity while leaving a healthy free float above 58 %. Share buy-backs (€300 m in 2024 under a €1.5 bn 2022-2026 mandate) prop up EPS and supply treasury shares for long-term executive incentives.

Positioning: The Ultra-Luxury Experience

Ferrari does not sell cars; it sells moving works of art and membership of an elite circle. Five pillars frame that value proposition:

Absolute Performance – F1-derived tech (active aero, hybrid powertrains) migrates to road cars.
Timeless Italian Design – Every model is an instantly recognisable rolling sculpture.
Managed Rarity – Output capped below 14 000 units, well under addressable demand.
Deep Personalisation – Near-infinite combinations of leather, heritage paints and advanced fibres add 20 %+ to list prices.
Exceptional Residuals – Ferraris often resell above sticker, lowering total cost of ownership and spurring repeat purchases.

This cocktail puts Ferrari closer to Hermès or Patek Philippe in consumer psychology than to Porsche or Mercedes-AMG.

Financial Performance

Revenue jumped 77 % in five years while volume rose 35 %, showing the power of price/mix. An EBITDA margin of 38 % dwarfs even Porsche (≈28 %) and Lamborghini (≈32 %). Consistent €1 bn free cash flow funds both €1 bn annual capex (electrification, Maranello expansion) and shareholder returns: a €2.44 dividend in 2024 (+35 % vs 2021) plus buy-backs.

Growth Engines after COVID

Product Pipeline From 2020 to 2024 Ferrari launched seven major models, including the hybrid SF90 Stradale, 296 GTB/Spider and the Purosangue, its first four-door “FUV”. Every launch blended mechanical heritage with e-tech, broadening the customer base without sacrificing scarcity.

Price Mix & Personalisation Options’ share of the invoice rose from 15 % in 2019 to 22 % in 2024. Limited runs (Daytona SP3, 812 Competizione) list above €1.5 m and sell out before public reveal, locking in exceptional margins.

Selective Geographic Expansion China deliveries soared 72 % in 2022 after lockdowns ended, underlining latent potential. The Middle East benefits from exclusive events (Ferrari Safari, Yas Marina track days) and demand is virtually cycle-proof.

Technology & Sustainability The 2024 “e-Building” heralds the electric era, with capacity for 15 000 battery packs—matching projected 2026 output. Ferrari’s first full-EV promises 450 km range and 0-100 km/h in <2 s. Management targets 60 % hybrid or BEV sales by 2030, securing access to low-emission regions like the EU and California.

Rarity versus Volume: The Delicate Balance

The strategy is to let demand outstrip supply: order books are filled through 2026, with some models oversubscribed three-to-one. This allows:

5-10 % annual list-price increases without order attrition.
A strict “no discount” policy, even amid macro uncertainty.
Gross margins above 50 % on limited editions, underpinning a projected €2.5 bn EBITDA as early as 2025.

The chief risk is saturating the ultra-rich client pool. Yet Ferrari estimates that less than 0.1 % of global UHNWI own one of its cars, leaving ample headroom for 7-8 % compound growth this decade.

2024 Luxury Context: Ferrari the Outlier

While soft-luxury giants saw sales dip 2 % in 2024, Ferrari grew 12 %. Three reasons:

Zero Price Elasticity – Multi-millionaire buyers shrug off macro swings.
Passion Product – A dream car purchase sits outside routine discretionary budgets.
Investment Appeal – Classic-car indices have beaten art and watches, enticing UHNW collectors.

Risks and Challenges 2025-2026

CO₂ Regulation – EU “Fit-for-55” demands EVs; balancing soundtrack and kerb-weight will test Ferrari’s engineering mojo.
Industrial Capacity – Maranello nears its 14 k threshold; a second EV line is slated for 2027.
Tech Competition – McLaren and Porsche rush into hybrid lightweights; Rimac targets €2 m hyper-EVs. Ferrari must prove its BEV has a soul.
Governance – Gradual Exor dilution may invite activist noise, though double voting rights contain short-term threats.

Outlook: Electrifying Without Losing the Halo

The October 2025 capital-markets plan sets three objectives:

≥ €7 bn revenue and ≥ €2.68 bn EBITDA in 2025, driven by Purosangue’s first full year and the next hypercar “F80”.
> 60 % hybrid + BEV sales by 2028 while defending margins through platform sharing and battery-motor synergies.
Lifestyle to 15 % of sales, via haute couture, hospitality and curated experiences.

Management is betting that the world-beating love affair with the Prancing Horse will translate seamlessly into the electric age. Each BEV will be low-volume, with a customisable digital soundtrack and even bolder styling. If that transition succeeds, Ferrari is poised to remain the automotive gold standard, combustion engine or not.

Conclusion

Between 2019 and 2025 Ferrari has delivered a masterclass in luxury economics: engineer rarity, push price, invest in product and cultivate myth. The result is margins rivaling couture houses and a market cap above €70 bn. Navigating the EV shift will be more complex, but if the brand can bottle its soul in kilowatts, Ferrari’s legend—and its financial firepower—should continue to roar.