“The unmistakable design of a Lamborghini super car,” writes Lamborghini on its Facebook page.

Lamborghini joins the boom in supercar SUVs

Lamborghini is set showcase its new supercar SUV on Monday, the Urus

Supercar makers have long known that parked next to that snarling Lamborghini, racing-red Ferrari, or stately Bentley at some of the globe’s toniest addresses is a practical SUV. With the sport utility vehicle market growing by leaps and bounds, they increasingly want in on those profits.

Lamborghini unveils the once-improbable Urus SUV on Monday at its headquarters in Sant’Agata, Italy, where the supercar maker owned by the Volkswagen group is expanding the factory to meet utility vehicle demand. The Urus enters a luxury field crowded with the Mercedes G-Class, the Bentley Bentayga and the trailblazing Porsche Cayenne — and soon to be joined by Aston Martin, Rolls Royce and, in all probability, Ferrari.

Analysts say that the move into SUVs has become a natural fit for most brands, even supercar makers like Lamborghini, despite the risk of alienating aficionados.

“I think if you look at those brands’ image, I think you would look at an SUV — especially a Lamborghini — as almost a sell-out move. I don’t think that is the case anymore,” Jeff Schuster, senior vice-president at LMC Automotive in Detroit. “There is some risk to the purist, who can only see one view of the brand. But as long as they don’t move too far out of who they are, a lineup can include an SUV in these brands. I wouldn’t have said that five years ago.”

From bring nonexistent in 2006, high-end SUVs have more than quadrupled in sales since 2010, from 4,700 units to almost 21,000 units in 2016, driven by the Mercedes G-Class and Bentley Bentayga, according to IHS Automotive. The entry of the Urus along with the planned Aston Martin DBX and Rolls Royce “High Side Vehicle” is expected to push those numbers up to 29,300 by 2020. Even Ferrari is considering entering the category, with a decision expected early next year, which could leave McLaren as the only hold-out among supercars.

Luxury SUVS are merely following the mass-market trend. SUVs are the fastest-growing overall segment of the car market, tripling in sales in a decade from just under 8 million units in 2006 to nearly 26.5 million units last year. SUV sales are forecast by IHS Automotive to grow by another 28 per cent to over 34 million units by 2020.

Before having a true luxury option, IHS automotive analyst Ian Fletcher said, many SUV owners went to private modifiers and tuners to increase performance and add luxury swag to their off-the-line mass-market vehicle. “A lot of manufacturers said, ‘Oh, we can have a piece of that,’” Fletcher said.

Porsche proved the market with the Cayenne, and was followed by the Mercedes G-Class, “which went from being utilitarian to being something synonymous with the Kardashians,” he said.

The decision to enter the SUV market was a no-brainer for Lamborghini, which as part of the VW group shares luxury SUV platforms with the Bentley Bentega and the Audi Q7, bringing down development costs and increasing profit margins.

“The Urus looks like it will be far more rakish than the SUV range that the VW group has, and far more dynamic,” Fletcher said. Trailers of the Urus show the vehicle spinning around the desert, an obvious fob to Middle Eastern brand enthusiasts, but could also appeal to buyers in Africa and Russia, where road conditions in some areas may have discouraged buyers from indulging in the lower-slung sportscars.

“They are aiming to have a vehicle which epitomizes what the brand’s core characteristics are: sport, high performance and accessible to customers who had to give up a sports car because they are having children, or just couldn’t get into a sports car any more or it wasn’t practical,” Fletcher said. “It broadens the brand to a wider group.”

IHS forecasts Urus sales of 2,900 a year to a peak in 2019-2020, putting it on par with the Lamborghini Huracan. And as with cars in the super luxury segment, the profit margins can be astronomical.

In the United States, SUVS are reshaping the luxury market, outpacing car sales and reaching a new audience, with the appeal strongest in trend-setting cities like Los Angeles, Miami and New York.

“I think car companies want to keep the brand pure, but they cannot ignore the market right now,” said Jessica Caldwell, senior analyst at Edmunds. “They are in the business to make money and I think that is why they are going this route.”

Colleen Barry, The Associated Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Pretivm Resources reports fatality at Brucejack mine

The isolated incident occurred last Friday, and the employee passed away on Sunday in hospital

Skeena Diversity Society in Terrace receives funding

An online survey will inform the society on how to best spend the money

QUIZ: How much do you know about British Columbia?

On this B.C. Day long weekend, put your knowledge of our province to the test

Terrace councillors consider court watch committee to ‘create an extra level of accountability’

City staff are reaching out to Coast Mountain College about a pilot program

B.C. records 146 new COVID-19 cases through long weekend

More that 28 people tested positive for the virus each day since Friday

Canucks tame Minnesota Wild 4-3 to even NHL qualifying series

J.T. Miller leads Vancouver with goal and an assist

COVID-19 vaccine efforts provide hope but no silver bullet to stop pandemic: Tam

There are more than two dozen vaccines for COVID-19 in clinical trials around the world

Two people die in propane heated outdoor shower near Princeton

Couple was attending a long weekend gathering

Racism in B.C. healthcare: Deadline for First Nations survey coming up on Aug. 6

Survey comes after hospital staff allegedly played a blood alcohol guessing game

‘We want to help’: As overdose deaths spike, beds lay empty at long-term Surrey rehab centre

John Volken Academy searching for ‘students’ to enlist in two-year residential treatment program

Study shines light on what makes LGBTQ+ youth feel safe in a community

The study goes beyond looking at school or family supports

Alberta to require masks at schools this fall, but still no mandate in B.C.

B.C. students are also set to return to classrooms in September

B.C. to allow customers to buy cannabis online for in-store pickup at private shops

Age verification will still be required inside the store

Most Read