Ferrari To Be Sold In India
The iconic Italian automaker, Ferrari, opened its first showroom in New Delhi, despite doubts that a high end sports car could be successfully marketed in a country with relatively weak infrastructure.
Roads in India are notorious for their potholes, high speed bumps, nebulous traffic and the occasional wandering cow. In 2007, hoping to test that perception, Ferrari drove two cars across India, piling up a total 11,000 km in 16 states. Despite the roads and infrastructure being far from perfect, the drive along with improvements in the past few years convinced Ferrari that now is the perfect time to test the Indian market.
Nevertheless, although cows and stray dogs are not as common as in years past, traffic in India continues to remain chaotic. Coupled with the $485,651 price tag and low height, the vehicle may be too impractical to overcome its allure as a status symbol. Even Ferrari admits that it will take up to 7 years for the firm to fully establish themselves as the government continues to ameliorate roads and infrastructure. Another option may be to introduce an India-only model designed to better suit its harrowing traffic.
Owned by Fiat, Ferrari hopes to move 100 units in India over the next 3 years. In their research they have identified a number of potential customers, ranging from business professionals and entrepreneurs to Bollywood stars. In addition to the New Delhi showroom, they hope to open a showroom in Bombay next year, all while scanning for dealership opportunities in other metropolitan areas. Currently there are 50 Ferraris in the country, all of them imported from abroad. Although import taxes can often exceed twice the original purchase price, Ferrari clients tend to be unconcerned with the cost, as demand in India and across the globe continues to exceed supply. New markets in the Greater China area have significantly expanded the company's client base, making it the third largest behind the US and Germany. Ferrari hopes that capturing the Indian market will help the company shift to the Asian market as the west stagnates. Presently, the company sells 6,500 cars each year.
As the media craze descended on the new showroom, even competitors couldn't help but welcome Ferrari's arrival and subsequent exposure. Sumit Chawla, deputy general manager of a nearby Jaguar-Landrover, believes that given the similarity of their clients, many potential Ferrari customers will turn to them, given the impracticality of the Ferrari's cost and low ride height. Yet in spite of its practical flaws, Ferrari's presence alone in India represents something far greater: the rising growth of a nation as it attempts to transition into a global superpower.
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