Supercars occupy that top echelon of automobiles that is constantly out of reach, often even for those with ready cash to purchase them. They are inherently impractical, temperamental and utterly, bafflingly desirable, with their foibles and undriveability signalling an excess of wealth that adds to their mystique.
For once, supercars are a part of public discourse thanks to industrialist Gautam Singhania alleging that Lamborghini’s latest V12 flagship – the Revuelto – is prone to electrical issues after a model he was test driving broke down on Mumbai’s Atal Setu bridge.
Peeved by the less-than-timely response of Lamborghini India, the brand’s official subsidiary in the country, Singhania’s post on X has invited both sympathy and ridicule.
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In a country where car ownership is limited to 1 in 12 households, the grievances of the 1% over supercars can be likened to a child being momentarily deprived of a new toy. But despite being flushed with cash, access to benchmark and flagship products sitting atop individual supercar brand pyramids, doesn’t come easy for India’s jet set.
Demand outstrips supply
Although the supercar market in India is dwarfed by the likes of China, the US, Japan and Europe, the last few years, both during and post-pandemic have seen considerable demand for brands like Ferrari, Lamborghini, Porsche and Mercedes-AMG – four brands that have total dominance over the performance car market in India.
Globally, except for McLaren and Maserati, most high-end performance car makers see a surplus of demand on a year-to-year basis.
In 2024, Lamborghini India sold 103 cars (as of August 2024) recording a 12% increase from the previous year. Porsche India saw a record-breaking 40% growth in H1 of 2024. In 2023 the brand sold 914 units, 93 of which were its flagship 911 sports car. It helps that both the brands operate as subsidiaries instead of taking the dealership route, which brands like Ferrari and McLaren do.
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Even with rising demand in India, getting allotments for range-topping supercars remains an uphill challenge for brands like Lamborghini India and Porsche, who have gone to great lengths to bring their most thoroughbred, rarefied, carbon-fibre reinforced offerings to India in higher numbers.
An unofficial source claimed that the number of 911 GT3 RS models – Porsche’s track-oriented lightweight performance variant of the standard 911 – plying on Indian roads adds up to approximately 26.
“Initially however, the allotment was for about 7-8 GT3 RS models and early allotment depended entirely on how you spec the car” said a person familiar with the matter, on the condition of anonymity.
Wiring harnesses for these cars and many others were manufactured in Ukraine and the war led to a genuine scarcity of parts, which hit the supply of many European manufacturers.
“During that period, with the supply hit, Porsche was able to offer allotment primarily to those who were requesting top-spec GT3 RS models, before indefinitely suspending the orders altogether,” he added.
The spec sheet filled with factory-fitted aftermarket accessories can nearly double the price of these cars with lightweight carbon fibre packages, and fade-free carbon ceramic brakes being particular favourites.
It can guarantee an allotment, but also extend the waiting period since it takes longer to put together.
“Porsche shifted the manufacturing of the wiring harnesses, and owing to the demand in India, was able to import stock GT3 RS models much faster, shortly after the supply chain stabilised. But for those who booked top-spec models right at the start, the wait continued, said the source.
The Hermes tactic
Brands like Ferrari opt for the same sales tactic employed by the likes of Hermes and Rolex – drive demand through exclusivity, both perceived and real. Although officially you can walk into either of their retail outlets and demand a high-end product, say the Daytona or the Birkin, wherein you would be placed on a waiting list, your position on said list depends on your ownership history.
In the case of brands like Rolex, multi-brand retailers have been known to coerce buyers to buy other brands, to get an early allotment for a prized Rolex – a practice that has been actively discouraged by Rolex. However, Rolex also chooses not to sell to consumers online and prevents its partners from selling products online – a practice for which it was fined 91 million Euros by France’s Anti Trust Department.
Supercar makers aren’t as notorious as the likes of Hermes or Rolex. But they can come close. The waiting periods aren’t seemingly endless, but they are long and exhaustive.
In order to access the top-end products (powered by top-of-the-line V12 engines) of brands like Ferrari – the possessor of the greatest brand equity in the car world, par none – owners have to often show that they presently own up to three Ferrari models.
According to an anonymous source actively involved in India’s supercar scene, this drives the resale value of their cars as well. “Often people will buy used Ferraris, only to be able to get access to top of the line, limited edition models like the 812 Competizione”.
It’s a standard tactic deployed by superlative luxury brands. Increase demand through exclusivity and limited access and as a corollary, increase the profit margin. There are loopholes, however.
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“In one particular case, an individual received an allotment from a performance car maker under someone else’s name. A person who already owned 3 models from the same brand. But changed the name for registration towards the end, when the car was ready for dispatch”. It’s also a fact that all V12 Ferraris are appreciating assets.
While some of the more easily accessible V8s continue to hold their value, it’s the front-engined flagship V12s that always sell for higher than their purchasing costs, regardless of the miles (which tend to always be low).
The same cannot be said for the likes of Lamborghini, whose series-production V12 flagships, like the Revuelto can be booked relatively easily if you’re cashed up.
Ownership history can determine early allotment of a car which could normally take up to 3 years to be delivered, or, in the case of Ferrari, remain out of an individual’s reach owing to high demand. All supercar manufacturers use this tactic to a certain degree.
While Lamborghini does not do it for its series-production models, cars like the Aventador SVJ 63, of which only 63 models were produced, are pre-booked much before production begins, even before the car makes its public debut, based on brand loyalty and ownership history.
Out of the 900 units of the Aventador SVJ produced globally, only one model made it to India, which went to long-time Lamborghini patron Bhupesh Reddy. An elite inner circle of Ferrari’s who’s who, are also invited to exclusive early access events in Maranello.
Although buyers have to pay excise duty in India, they are thankfully, spared the fate of dealer markups – a notorious practice that has lowered the demand for supercars in markets like the USA.
However, certain dealers retailing more than one supercar brand, have been known to push the sales of low-selling supercar brands, citing long and uncertain waiting periods of the consumer’s preferred brand and variant of the rarified supercar as a reason to opt out and go for what’s available.
The Carnet route
The lopsided demand and supply nature of supercars in India has many opting for the ATA Carnet route. By applying through the Federation of Indian Chambers of Commerce and Industry (FICCI) customers can buy and register a supercar in Dubai. By using the Carnet route to bypass paying customs duties, a Dubai-registered car can be legally driven in India, but only for six months.
However, given the multiple-entry, 5-year tourist visa now available to Indians, many well-heeled ones prefer to own a supercar in Dubai, dropping into the city on weekends, while conducting their business in India on weekdays.
Despite this provision, supercar brands in India remain unfazed, because they are already maxed out.
Deconstructing the supercar buyer
Keeping aside the likes of Bugatti, Koenigsegg, Pagani and co. which operate in hypercar territory, the bulk of supercar buyers across the world are divided into Ferrari, Lamborghini, McLaren and Porsche buyers. There are also Mercedes-AMG buyers, but for typification purposes, it’s primarily these four.
Lamborghini buyers are in it for the dramatic looks, flamboyance and road presence. Ferrari, arguably a brand that inspires the fiercest, unflinching loyalty, is all about pedigree and pure performance, backed by decades of Formula One and Le Mans history.
McLaren buyers are tech and spec-obsessed and want the most shredded race-car-turned road-legal. And then there’s the Porsche driver – unperturbed by miles because of Porsche’s incredible build quality, they buy into the brand because they enjoy driving. Frequently and without hesitation.
Porsche also caters to a wider band of sports car owners, from the daily 911 driver to the track-obsessed GT3 and GT2 driver.
