Despite entering the global automobile market almost a century after pioneers Germany and France did, today Italy is home to some of the fastest and most luxurious cars in the world.
First manufactured in the 1930s, the world famous Italian super cars Ferrari and Lamborghini only appeared on the Ukrainian market in 2007. And Ukraine was lucky to get them, as the number of Italian car dealerships has decreased by 31 percent since 2007, according to a survey released in April by Quintegia automotive market research company.
Lamborghini all-wheel-drive cars, best known for their sleek, futuristic design and powerful engine that can propel them to speeds of more than 300 kilometers per hour, were first sold here in that same year. However, sales of the sports car slowed to a crawl during the 2008 financial crisis and picked up only in 2012, according to Artem Botsvin, head of Lamborghini sales and marketing at Vipos auto group, the official dealer of both premium and luxury cars, including Audi, Volkswagen, Brilliance, Bentley and Lamborghini autos.
With business hindered by the global recession, the company has not made a profit, according to Botsvin. But it has broken even and is likely to get into the green soon, he adds.
“The new off-road Lamborghini Urus sports utility vehicle that is expected to appear in 2015-2016 will push up our (sales) by 4-5 times,” Botsvin said, adding that despite a price of €300,000 demand for it is already high in Ukraine.
So far, 8-10 Lamborghinis are sold per year, according to Botsvin. “That is mostly due to the lack of tradition of owning sport cars in Ukraine,” he said.
Stereotypes regarding Lamborghini also push away potential buyers in Ukraine, according to him.
“There are a lot of warped judgments that it’s impossible to drive them on (Ukrainian) roads and that they cost millions,” he said.
But a professional race track is needed to give drivers the opportunity to experience the full capabilities of a Lamborghini, according to Botsvin. The one announced by officials to be built in Kyiv could thus boost sales.
The price for a Lamborghini ranges from €180,000 for a Lamborghini Gallardo to €250,000 for a Lamborghini Aventador model.
Importing and selling the legendary Ferrari cars on the Ukrainian market was even harder. The rear-wheel-drive cars, which reach speeds over 300 kilometers per hour, are best known for their numerous achievements in Formula One racing.
“We began attracting Ferrari in 2007, and it was very difficult at that time, as Ukraine was considered a wild market for Ferrari,” recalled Genadiy Ovcharuk, general director of Redcar and Vipcar companies, Ukrainian official importers of Ferrari and Bentley, respectively.
In 2009, his company won a tender to open an official dealership here. Since it started distributing Ferrari in 2011, the dealership has sold about 20 cars.
“Ferrari is usually bought by the people who have already bought everything,” he says. “It can’t be used just as an ordinary means of transportation,” he said. “The man who is buying a Ferrari usually has a number of cars he uses for going on business trips, etc., while he’ll use a Ferrari to go to a restaurant on the weekend, for example,” he says.
Like Lamborghini, Ovcharuk said many stereotypes exist about Ferraris. Most people believe they have only one purpose – to race. But the range of Ferraris is very different – from the sporty Ferrari California at €220,000, to the Grand Tourer model Ferrari Berlinetta, available for €319,000.
Even though prices are quite high in the luxury segment, dealers admit this kind of business is not one that brings a quick profit, due to the relatively low market volume in this sector in Ukraine. The specificity of Ukraine’s market is what makes selling luxurious cars here possible. Ukrainians prefer the most expensive cars in the luxury car sector, and those sales amount to 40 percent of the dealership’s total sales, according to Ovcharuk.
Moreover, a new wave of rich Ukrainians is appearing, according to him.
“Around five Ukrainian farmers have joined the list of the owners of luxurious cars in the last two years,” he said.
At the same time, he said the stereotype about the high number of expensive cars in Ukraine is wrong. “The volume of the (luxury) automobile market is around 400 cars per year, while in big European countries it’s several thousand per year,” he said.
Still, Botsvin said it’s economically viable to combine the premium and luxury segments.
“Working just in the luxury segment makes no economic sense in Ukraine,” said Botsvin.
However, running this kind of business is not only about profit for Ovcharuk. “Not everything is measured by money, it’s about ambitions (to have it) as well,” he added.
Kyiv Post staff writer Anastasia Forina can be reached at [email protected].
