Mate Rimac, who took over Bugatti in 2021, describes the supercar market as entering its 'Swiss watch phase,' where the wealthiest consumers are moving away from high-tech electric vehicles in favor of classic, mechanically intricate cars.
He notes that the mainstream car market is being flooded with affordable electric vehicles, particularly from China, while the luxury segment is leaning towards traditional internal combustion engines that evoke emotional connections.
Rimac's comments draw a parallel between the automotive and watch industries, where high-end mechanical watches remain desirable despite the prevalence of digital alternatives.
Bugatti's latest model, the hybrid Tourbillon, features an 8.3-liter V16 engine producing 1,800 horsepower and is priced at approximately $4.5 million, with customers often spending an additional $600,000 to $700,000 on customizations. This trend towards personalization is becoming a significant profit driver for supercar manufacturers.
Rimac also mentioned that Bugatti's production will remain limited to low three-digit numbers to maintain exclusivity, and the company reported earnings of 200 million euros (about $233 million) last year. Following Porsche AG's sale of its 45% stake in Bugatti Rimac, Rimac indicated that the company's valuation exceeds $2 billion.
He aims to create the most exciting and profitable cars while emphasizing the importance of human craftsmanship in an era dominated by technology