Lamborghini deliveries and sales in Middle East ‘at standstill’

Sales and deliveries by Italian luxury sports carmaker Lamborghini in the Middle East are at a standstill as conflict in the ​region forces dealership closures and blocks shipments, its CEO said.

“Activities are stopped. We cannot send the cars. Dealerships are either closed or just nobody goes there,” CEO Stephan Winkelmann said, adding the carmaker risks ​losing most of the Gulf selling season.
The Middle East follows a ​highly seasonal sales pattern, with demand concentrated before and ⁠after the summer, when extreme heat keeps buyers away from showrooms.

The ​Volkswagen-owned luxury brand faces the risk that lost sales cannot be recovered ​later in the year, Winkelmann said.

Lamborghini has been unable to ship cars to most Gulf countries, including the ​UAE and Oman, with Saudi Arabia slightly less affected, ​the CEO said.

While Lamborghini has explored alternative ports, including Jeddah, Winkelmann said rerouting ‌shipments ⁠made little sense while the market remained effectively closed.
The Middle East region accounts for about 450 cars sold a year for Lamborghini, roughly 5 percent of its annual volume, but historically produces high profit margins, in ​line with industry ​peers.

Other luxury carmakers ⁠have paused deliveries and temporarily shut dealerships across the Gulf as the conflict disrupted logistics and consumer ​demand.

Winkelmann said orders placed months ago are not being ​delivered on ⁠schedule in the region, though cancellations have not been a major issue.

“If the conflict drags on, it will certainly be a problem for us.”

Although ⁠not ​possible in the short term, Lamborghini may ​reallocate volumes to other markets if the conflict persists, a strategy it has used since ​the pandemic amid other global shocks.

Further reading:

• Hermès slump a sign of luxury’s wider woes in Iran war
• UAE online sales rise as shoppers choose safety during conflict
• Luxury goods threatened by tourists avoiding Iran conflict