Swiss Watch Phase of Supercars

Bugatti CEO Mate Rimac predicts that high-end sports cars and luxury vehicles will continue to feature combustion engines for a very long time. This assertion comes from his observation that the market is entering its ‘Swiss watch phase,’ where the wealthiest buyers are rejecting high-tech electronics and electric vehicles in favor of precision mechanics and hand-crafted details.

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Rimac drew a comparison between the car industry and the watch market, noting that while digital and smart watches dominate the majority of the market, high-priced Swiss mechanical options remain popular among the wealthy. He believes that the same principle applies to the supercar market, where only a small percentage of vehicles will be electric, but those that are will command a significant premium.

Personalization and Customization

Rimac also highlighted the growing trend of personalization and customization in the supercar industry. He noted that customers are increasingly seeking unique objects that reflect their individual identity, and that this trend is driving significant profits for manufacturers like Bugatti, Ferrari, and Lamborghini.

The company’s latest one-off, the Destrier, is a prime example of this trend. Reimagining the track-based Bolide model, the Destrier features a lower stance, larger wheels, and sculptural body work. Rimac believes that this type of customization is not just about aesthetics, but also about telling a story and reflecting a person’s personality and preferences.

Exclusivity and Profitability

Rimac’s goal for Bugatti is to continue to boost production, quality, and profits, while also retaining exclusivity. He stated that production will never go higher than ‘the low three-digit numbers,’ ensuring that the brand remains rare and desirable.

The company’s financial performance is a testament to Rimac’s strategy. Bugatti earned 200 million euros (US$233 million) in earnings before interest, taxes, depreciation, and amortization last year, and Rimac is confident that profits will continue to grow.

The Human Factor

In an era where artificial intelligence, autonomous vehicles, and electric vehicles are becoming increasingly prevalent, Rimac believes that the guiding principle for Bugatti will be the human factor. He notes that while electric vehicles may be faster and more efficient, they lack the emotional appeal and connection that comes with owning a high-performance combustion engine.

Rimac’s vision for Bugatti is one of creating the world’s best cars, the most exciting cars in the world, and the world’s most profitable car company on a percentage basis. He believes that by focusing on the human factor, Bugatti can differentiate itself from the competition and continue to thrive in a rapidly changing market.