Porsche makes the highest profit among niche brands

Ever wondered how profitable it is to sell sports cars? A lot of us do and according to a report in a publication Porsche makes the highest profit of $23,000 (Rs 14.1 lakh) on every car sold. That’s a clean profit margin of 18 per cent.

Bentley finished a close second in the profit game with a reported figure of USD $20,000 (Rs 12.2 lakh) margin per car. Surprisingly, luxury and sports cars are selling well, while the mainstream products struggle to put numbers. The customers buying these high end vehicles seemed unfazed by the market situations and as a result the sales figures were healthy.

The reason for profitability is also because of the parts sharing that brings costs down and thereby increasing profitability. The Cayenne is the best selling model in the Porsche range and it shares the platform with Audi’s Q7 and the VW Touareg.                                                                                                                             

The introduction of Macan (sold-out for this year before launch) will further augment their market position and how much it affects the profitability will be seen.

Source: Bloomberg