Lamborghini, Volkswagen’s ultra-fined brand, is stated to have branched it’s way into India, enabling new dealership in New Delhi this week. At first glance, this seems like a step-up for the company, given the high density of population in the country as well as the fast-growing number of wealthy individuals in the populace. Is it, really?

India’s roads, which are of no condition to have ultra-powered Italian      sports cars to be driven on. Additionally, the doubling up of taxes and insurances on the luxurious automobiles can offset marketing efforts, as the cars will be priced way higher than expected.

Lamborghini should have considered making slight adjustments to its models, if it was to bring in its cars to India. The ultra low body kit and the raving horsepower is simply not adaptable to India’s road conditions. How about the price? The price of $360K is simply too high if doubled up with taxes. To address these inconveniences, Lamborghini should have invested more into making appropriate cars for its target market in India. The company hopes that the fast-developing country would reshape the architecture of its roads and economical politics quickly enough for its product to hit big. But then again, that would take longer time to achieve than if Lamborghini developed a whole new India-appropriate automobile.

Sources:

http://www.businessweek.com/articles/2013-09-23/lamborghini-zooms-into-india-over-potholes

Figure 1:

http://www.theguardian.com/business/2013/sep/24/lamborghini-india-rich-new-delhi-showroom