Wealthy in this country are splurging on Ferraris, Lamborghinis. Here's why
- Japan saw a spike in new car registrations costing more than $136,000 during the January through October period.
Supercar brands such as Ferrari and Lamborghini are witnessing an unprecedented sales boom in Japan thanks to pent-up demand and the post Covid lockdown demand. Wealthy buyers are looking at supercars as means of investment amid a weakening yen and soaring used-car prices. The country saw a spike in new car registrations costing more than $136,000 during January through October.
There was a rise of 64% at 5,462 vehicles as compared to the year-ago period, as per data from the Japan Automobile Importers Association. However, total sales of imported cars fell 11% to 193,026 units during the same period this year.
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As per Yasuhiro Suyama, president of the Japan Supercar Association, more than two years of Covid-related restrictions is now sparking interest of drivers in spending money on new cars, while the global shift toward electric vehicles is another reason for interest in supercars and the growl of their engines. “If you don’t drive them now, then when?" Suyama asked during an interview with Bloomberg.
Even though prices of these vehicles are set to rise due to inflation and the weaker yen, “the number of people who want to buy is definitely increasing, and demand for supercars won’t fall," Ken Miyao, an analyst at Carnorama, an automobile research company, told Bloomberg.
Another reason for the spike in registration of new supercars is that there has been a rise in the wealthy category in Japan. Despite a slowdown in economic activity over the past two-plus years, incomes for the wealthy have been on the rise, according to Tokyo Shoko Research. The number of company executives with compensation of more than ¥100 million rose 22% to 663 people during the fiscal year through March.
However, the availability of supercars could continue to be limited because of the ongoing chip shortage in the global auto industry.