Ferrari to launch first fully electric vehicle in 2025

Representative Image (Courtesy: Ferrari)

Ferrari, renowned for its powerful petrol engines, is set to introduce its first fully electric vehicle (EV) in late 2025. The Italian automaker’s inaugural EV is anticipated to cost at least 500,000 euros (USD 535,000), according to a report by Reuters, citing sources close to the matter.

The upcoming electric model will be priced significantly higher than the average sale price of Ferrari’s traditional cars, which was around 350,000 euros including extras in the first quarter of this year. This price also surpasses many rival luxury EVs, such as Porsche’s electric Taycan, which starts at about 100,000 euros.

Production expansion in Maranello

To prepare for the launch, Ferrari is establishing a new production facility in Maranello, Italy. The plant, set to open in June, will manufacture electric motors, battery packs, and power inverters. This facility aims to increase Ferrari’s production capacity by up to a third, potentially allowing the company to produce around 20,000 vehicles annually, up from the fewer than 14,000 cars delivered last year.

Unique driving experience

CEO Benedetto Vigna has assured that the new EV will provide a “unique” driving experience, similar to Ferrari’s traditional combustion engine-powered cars. Ferrari is positioning itself to capture a significant share of the high-performance electric supercar market, with a goal that 60% of its offerings will be a mix of fully electric and hybrid cars by 2026.

Balancing exclusivity and demand

Ferrari’s brand is built on exclusivity and high prices, and increasing production carries the risk of diluting this exclusivity. However, the company has successfully expanded its market with models like the Purosangue SUV, launched in 2022, showing it can meet increasing demand without compromising its brand essence.

“There is increasing demand for Ferraris, and they have room to meet part of it without compromising exclusivity,” said Fabio Caldato, a portfolio manager at AcomeA SGR. Waiting lists for some models can extend up to two years, enhancing the brand’s status symbol.

New facility and future models

The new Maranello factory will include an additional vehicle assembly line and produce petrol, hybrid, and electric cars, along with their components. The plant is expected to be fully operational within three to four months. Ferrari is also developing a second EV model, though it is still in the early stages.

Market competition

Ferrari’s move into the electric vehicle market will put it in competition with other luxury automakers, such as Lamborghini, which plans to introduce its first EV in 2028. Lamborghini’s CEO Stephan Winkelmann emphasized the importance of developing the right product over being the first to market.

Niche market model

Ferrari’s new EV, despite its high price, is expected to be a niche model. Analysts predict it will account for just over 10% of Ferrari’s annual sales, considering its high price and the current slowdown in the luxury EV market. This pricing strategy will help maintain Ferrari’s profit margins amid the costly development of new electric technology.

Ferrari’s foray into the electric vehicle market represents a significant shift in its product lineup. By launching a high-priced, high-performance EV, Ferrari aims to retain its brand exclusivity while tapping into the growing demand for luxury electric cars.

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