
‘We’re Not Selling Cars, We’re Selling Dreams’: Lamborghini Chairman & CEO Stephan Winkelmann on Why He’s Betting on India
Lamborghini Chairman & CEO Stephan Winkelmann on the Indian luxury car market, selling dreams to customers, and the way ahead It is obvious that Stephan Winkelmann, 59, likes India. Its clear growth story can only lead to more demand for the luxury cars. As Chairman & CEO of Italian luxury sports carmaker Automobili Lamborghini, the auto industry veteran runs a company—owned by Volkswagen Group through subsidiary Audi—famous for its supercars. Sitting in a luxury car showroom in central Mumbai, a cheerful Winkelmann sounds optimistic about India and not without reason. Last year, his company got past the three-digit mark in sales volumes. It sells three models here—sports car Huracán, sports utility vehicle Urus, and Revuelto, a hybrid sports car. It is not easy to push luxury cars in India, though the numbers are now encouraging. In an interview with Business Today’s Krishna Gopalan, Winkelmann speaks about India, the need to have a specific strategy for the market, and what it means to sell dreams, among other things.
Q: What makes India an interesting market for you?
A: I have been to India five or six times. The first time was in 2005 and since then there have been dramatic changes—in terms of infrastructure, markets, [and] competition. Just look at the car market or, more specifically, the high-end car market. I think the economy looks very strong today and it’s the fifth largest globally. That is a very striking fact from our point of view.
That said, my view is a small one… I come here for a few days and there is a constant need to re-learn and reshape what we have done in the past. It is a very promising market and has clearly not achieved its full potential… for example, in the luxury car market around 1,000 cars are sold each year. That is inside a very large car market and luxury is only a small segment within that. We have a good business with about a hundred cars and that makes me happy. When I see other luxury markets like fashion, accessories, watches, all the big global brands are here and ready for growth. Obviously, everyone is convinced that the market will take off, but they are not sure how fast that will be and how steep… I believe we will continue to grow as a company unless there is some serious interruption in India and globally.
We are cautious and one must understand that one key element of the luxury business is to have an order bank that lasts. You must have residual values, which are high and more than the new cars. Plus, the brand value must constantly keep rising. That means there are always indicators to tell us if we are going the right way.
Q: You travel across the world. Which market does India remind you of and from what era?
A: It is an emerging market. It is one that is moving in terms of expectations and could be a bit slower than the others but remains consistent. We hope that will continue to be the case. The only one that is, maybe, close [to India] but also very different is the Chinese market—not just in terms of size, but also population and how they position themselves towards brands in the luxury business.
Q: For your business, does India remind you of China say 10-20 years ago?
A: Yes and no since the world has changed a lot with social media [and the] internet; plus, the language barrier in China is much bigger than it is here. For Westerners to come to India is a lot easier since you can speak to almost anyone, and that is a huge advantage.