Double Pressure of Tariffs and Transformation: Lamborghini's Revenue Hits a Record High but Profit Declines, Electric Strategy Shifts Towards Conservative

Italian supercar manufacturer Lamborghini announced in its financial report on Thursday that, despite achieving record revenue in 2025, profits have declined due to expenses related to US tariffs, exchange rate fluctuations, and the cancellation of the first pure electric car model plan. The luxury brand owned by Volkswagen Group saw a 3.3% year-on-year increase in annual revenue, reaching 3.2 billion euros (approximately 3.7 billion U.S. dollars) and set a record high delivery volume of 10,747 units. However, operating profit decreased from 835 million euros in 2024 to 768 million euros. In its largest market, the United States, tariff policies have impacted Lamborghini's sales and profit margins. CEO Stephan Winkelmann stated that despite raising prices last year, it was not enough to fully offset the impact of tariffs. He emphasized that the company does not plan further price increases this year, "because we believe that in the current environment, this move is not helpful to the market." As a result, Lamborghini's operating profit margin in 2025 decreased from 27% in the previous year to 24%. Lamborghini stated that the company is alleviating external pressures through cost control and increasing sales of high-priced models. This is due to strong performance of the Revuelto sports car priced at 515,000 euros, as well as increasing demand from customers for customized services with high-profit-margin vehicles. Data shows that almost all vehicles delivered in 2025 include at least one personalized customization element. Regarding the performance outlook for 2026, Winkelmann stated that due to numerous uncertainties, it is "too early" to give a forecast. These factors include ongoing conflicts in the Middle East, which not only disrupt oil supply and logistics but may also suppress the luxury car market with high-profit margins. Transition to electrification strategy It is worth noting that Lamborghini decided earlier this year to abandon its plan to launch a pure electric car in 2030, citing weak market demand and concerns about the return on huge investments. Winkelmann admitted: "In the niche market we are in, there is a clear increase in global resistance to electric cars. Many customers have tried electric cars, but frankly, their experience did not meet expectations." However, he also stated that the company is still developing electric car technology to respond to potential shifts in demand in the next decade. "But whether it is today or tomorrow, I do not see this trend." In contrast to Lamborghini's conservative strategy, its main competitor Ferrari plans to unveil its first pure electric model this May and expects that by 2030, electric cars will account for 20% of its product line. As an alternative, Lamborghini will launch a plug-in hybrid model in 2030, joining its existing lineup of hybrid models. Winkelmann revealed that this new car, called Lanzador, will be a luxury grand tourer with a "2+2" seating layout.