In 2024, Ferrari made crazy money, with both revenue and net profit achieving substantial year-on-year growth. But the Chinese market has become the “only exception”. From a sales perspective, Ferrari's sales in China have been on a downward trajectory since 2023, with year-on-year declines in the four quarters of 2024, and overall annual sales ultimately fell by 22%.
Behind Ferrari's loss of the Chinese market is the fact that Chinese car companies have gradually achieved cornering overtaking in the era of new energy vehicles. A few days ago, Lei Jun announced that the Xiaomi SU7 Ultra New North Limited Edition is priced at 814,900 yuan, which has reached the high-end price range. Previously, BYD launched Yangwang, Hongmeng Zhixing's Zunjie, etc., and their price ranges also reached one million yuan. Ferrari is preparing to launch its first electric car this fall in an attempt to "recover lost ground." But the most difficult thing to catch up with is the leadership of Chinese car companies in intelligent technology.
Ferrari is making crazy money globally, but only the Chinese market "performs poorly"
Recently, Ferrari announced its 2024 financial performance report and sales.
The financial report shows that Ferrari's revenue in 2024 will be 6.677 billion euros, a year-on-year increase of 11.8%; operating profit (EBIT) will be 1.88 billion euros, an increase of 16.7% from last year, and the operating profit margin will reach 28.3%; net profit will reach 1.5 billion euros, also an increase of 21%.
Ferrari stated in its financial report that "the company's performance in 2024 exceeded all predetermined targets and performed well." Ferrari CEO Benedetto Vigna said, "We focus more on the quality of revenue rather than sales, which is one of the reasons why the financial performance in 2024 is so outstanding."
However, judging from the sales volume, this may not be the case. Data shows that Ferrari will deliver a total of 13,752 new cars globally in 2024, an increase of 89 units compared with 2023 and a year-on-year increase of only 0.7%. Among them, 10 internal combustion engine models accounted for 49% of sales, and 6 hybrid models accounted for 51% of sales.
In terms of regions, the delivery volume in the American market increased by 192 vehicles, reaching 4,003 vehicles in Europe; the delivery volume in the Middle East and African markets increased by 141 vehicles, reaching 6,204 vehicles; however, the sales volume in the Chinese market dropped from 1,490 vehicles in 2023 to 1,162 vehicles, a decrease of 328 vehicles, a year-on-year decrease of 22%.
In fact, starting from 2023, Ferrari's sales in the Chinese market will go downhill. In 2023, Ferrari's sales in China will decrease from 1,552 vehicles in 2022 to 1,490 vehicles, a year-on-year decrease of 4%.
Entering 2024, Ferrari's sales in China dropped from 396 to 317 in the first quarter, a year-on-year decline of 20%; in the second quarter, it dropped from 339 to 278, a year-on-year decline of 18%; in the third quarter, it dropped from 395 to 281, a year-on-year decline of 29%; in the fourth quarter, it dropped from 360 to 286, a year-on-year decline of 21%.
It can be said that the Chinese market has become Ferrari's worst performance in the global market.
Chinese car companies overtake in corners and encroach on the high-end market
Industry insiders believe that the reason behind Ferrari's loss of the Chinese market is that Chinese car companies have gradually achieved overtaking in corners in the era of new energy vehicles.
In the era of fuel vehicles, in the luxury car market, traditional brands such as Mercedes-Benz, BMW, and Audi have always dominated; in the higher-priced ultra-luxury market, there are almost no independent brands. However, with the advent of the new energy vehicle era and the rise of Chinese automobile brands, this pattern is quietly changing.
In recent years, Chinese car companies have stepped into the luxury and ultra-luxury markets, launching a series of high-end models in an attempt to break the monopoly of traditional luxury brands. More representative ones include Yangwang, a subsidiary of BYD, and Zunjie, a subsidiary of Hongmeng Zhixing.
In 2023, the Yangwang brand was officially released. The first product, the hard-core off-road Yangwang U8, was officially launched with a price of 1.098 million yuan. In 2024, Yangwang released its second model, the pure electric performance supercar Yangwang U9, with a price of 1.68 million yuan. BYD has applied core technologies such as Yi Sifang and Yun Nian in its Yangwang brand, which can realize high-end functions such as three-wheel driving, vehicle dancing and in-situ take-off.
Recently, Hongmeng Zhixing also just held a Zunjie technology conference. Yu Chengdong, Huawei's Managing Director, Chairman of Terminal BG, and Chairman of Smart Car Solutions BU, announced that Zunjie S800 will be equipped with six major intelligent technologies: Touring Dragon chassis, Angel active safety protection, Huawei Galaxy Communications, Huawei Car Voice System 2.0, Hongmeng ALPS Cockpit 2.0, and Huawei Whale Battery 2.0. It is reported that Zunjie S800 will be launched in May this year, and the previously announced price is expected to be 1-1.5 million yuan.
It is worth mentioning that Xiaomi Motors’ high-end model Xiaomi SU7 Ultra has also been released. Its New North Limited Edition is priced at 814,900 yuan, which also falls into the ultra-luxury price range.
Overall, whether looking up, Zunjie S800 or Xiaomi SU7 Ultra are competing for the market of ultra-luxury brands including Ferrari. They are either relying on self-developed technology or brand potential to carve a hole in the ultra-luxury market.
Although Ferrari is also accelerating its transformation into the new energy era, for example, hybrid models will account for 51% of sales in 2024, and its first electric car will be unveiled in the fall of 2025. But what needs to be caught up even more is intelligent technology, which is also the collective weakness of traditional luxury brands.
Text | Sina Technology Zhang Jun