Ferrari’s senior executives admitted that the ongoing war in the Middle-East has impacted them too. “Like every company, it is impacting us too,” Francesco Bianchi, head of Far and Middle-East hub told select media, after Ferrari’s CEO Benedetto Vigna launched the iconic 849 Testarossa in the city.

Ferrari manages the brand strategy, regional launches and dealer network support systems through its regional hub in Dubai, which has been rocked by sustained airstrikes from Iran, in retaliation to bombings from Israel, in recent weeks.

Bianchi said the first priority has been to ensure that all employees are safe, there. We are adapting to the changing situation and hoping that the escalation subsides.”

Enrico Galliera, chief marketing and commercial officer for Ferrari explained: “Deliveries to Asia are taking more time due to a longer route and costs are also going up. But for the short- to medium term, Ferrari is little protected,” he said.

Galliera pegged this to their business model. “In this situation it is to our advantage. We don’t sell cars from stock; we sell based on fresh orders. For the time being our portfolio is going well, up to the end of the next year, based on our volume projection,” he said

“Ferrari has a higher resilience; we can adapt to our operations to cope with current situation. We are hoping that the disruption will end soon, as it is impacting the supply chain.”

The Middle-East war has completed two weeks with no end in sight. By the weekend the United States claimed it had pounded a crucial oil hub on Iran’s Kharg Island, while Iran’s government has refuted this saying its key sites are intact, but vowed retaliation.

India a real opportunity

Galliera recounted conversations which the company had been having about 15 years ago, about when to time their entry into India. “We were not sure how many years it would take, but we definitely knew we had to be there. Ferrari operates official, authorised dealerships in Mumbai and New Delhi, offering sales, service, and certified pre-owned vehicles.

“India, in terms of potential and presence, is gaining ground. The mid to long term is a real opportunity,” Galliera said.

Bianchi said that they are “planning certain number of milestones in India. The first is the launch of the 849 Testarossa.”

“We want to establish the Ferrari brand here because there is a strong connection with the market,” Bianchi said.

Ferrari does not publicly provide sales numbers across its markets. But Bianchi said there “is enough evidence to show that we are accelerating in this market.”

India is a unique market which Ferrari is wanting to expand into. India accounts for the third richest number of billionaires in the world, behind China and the United States.

While Mumbai is at the top spot, followed by New Delhi, Bangalore, Hyderabad, Chennai, Ahmedabad, Kolkata, Pune, Gurugram and Surat, all have a strong presence of billionaires. In this scenario, Bianchi said it was very important for Ferrari to be “closer” to the client. “We are working on developing this network,” he said, but said it did not mean this would be through more dealerships.

Galliera said Ferrari’s global model is to retail with partners, without direct dealership. Purchases were made by buyers wherever it was possible, but servicing centres would be closer to the buyer. But both executives said that if the Indian market continued to grow, a national presence could not be ruled out.