Ferrari profits top €1bn for first time as drivers splash out on luxury 4x4s

James Warrington 01 February 2024 3:37pm GMT Ferrari has posted profits of more than €1bn (£850m) for the first time as wealthy drivers splash out on luxury SUVs. The Italian car

manufacturer reported a record net profit of almost €1.3bn in 2023, marking an increase of more than a third on the previous year. Ferrari said sales had been driven by strong demand for its

Purosangue SUV, which was in the “ramp up” phase in the second half of the year, meaning production is yet to hit full capacity. The Purosangue, which is priced from £313,000, is Ferrari’s

first-ever four-door and four-seater car. The luxury brand presents the car as its most comfortable and spacious vehicle to date, though it can still reach 60mph in 3.3 seconds. Deliveries

of the 296 and SF90 families of sports cars were also higher last year. Ferrari has been able to raise prices on many of its models as its wealthy customers shrug off surging inflation and

higher interest rates. Benedetto Vigna, chief executive of Ferrari, in November said demand was so strong that its order books covered the whole of 2025. Speaking on Thursday, Mr Vigna said:

“2023 was a very successful year, during which we strengthened our brand through a number of achievements reflected in our unprecedented financial results. “We now have a very important

year ahead of us in the execution of our business plan, which continues on schedule along its carefully planned path.” Ferrari, which is known for its 12-cylinder engines, is also navigating

a shift to electric vehicles that is upending the automotive sector. The company’s product portfolio last year included 11 internal combustion engine models and four hybrid models, which

represented 56pc and 44pc of deliveries respectively. Ferrari is planning to release its first fully-electric car in late 2025, and expects traditional engines to represent just a fifth of

total sales by the end of the decade. A new factory focused on electric cars and hybrid components is currently under construction in the Prancing Horse’s hometown of Maranello. It is due to

be completed by June. Shipments rose 3.3pc in 2023 to 13,663 vehicles as growing demand in the Americas offset a decline in mainland China and Hong Kong. Net revenues jumped more than 17pc

to €5.9bn thanks to both higher volumes and prices, as well as higher Formula 1 revenues. It came amid reports that Lewis Hamilton is set to join Ferrari’s Formula One team for the 2025

season. It is understood the seven-time world champion will leave Mercedes to join the Italian team when his contract expires next year.