Why Ferrari is ramping up car supplies in India
What's the story
Ferrari, the renowned Italian luxury sports car manufacturer, is planning to ramp up its vehicle supplies in India. The move comes as a response to the increasing demand for its cars in the country and expectations of lower import duties under the India-European Union free trade agreement (FTA). The company's registrations in India have already witnessed a significant jump of 28.6% to 45 units in 2025 from 35 units in 2024.
Business strategy
Demand-driven business model
Francesco Bianchi, Ferrari's Far and Middle East President, said the company is ready to increase allocations to India as per demand.
He explained that their business model is mainly demand-driven.
"We look at the demand," Bianchi said. "Depending on the demand, we distribute the number of cars that the company is willing to produce."
He added that they see this market growing more in terms of demand and will grant more volume to India accordingly.
Market impact
Anticipated reduction in import duties
Bianchi also said that the prospect of lower import duties under the India-EU FTA is already generating interest among prospective customers.
They expect Ferrari models to become relatively more affordable once the agreement takes effect in 2027.
The FTA will cut customs duties on eligible EU-origin cars imported as completely built units within specified annual quotas, further boosting demand for luxury vehicles like Ferraris in India.
Growth plans
Expanding retail network
Ferrari is also expanding its retail network in India.
The company currently has showrooms and service centers in New Delhi, Mumbai, and Bengaluru.
It plans to expand its network to Ahmedabad and Chennai potentially by the end of 2026.
Bianchi said potential customers are visiting Ferrari showrooms to inquire about models like the 12Cilindri, Purosangue, and Amalfi.