Lamborghini 2025 profit dented by US tariffs and EV U-turn

[MILAN] Italian sports carmaker Lamborghini on Thursday (Mar 19) reported weaker 2025 earnings despite record revenue.

The US tariffs, currency moves and charges related to scrapping its first electric vehicle (EV) had weighed on the results.

The revenue at the Volkswagen-owned luxury brand rose 3.3 per cent to 3.2 billion euros ($4.7 billion) as deliveries hit a record 10,747 units. But its operating income slipped to 768 million euros from 835 million euros in 2024.

The US tariffs hit both sales and margins in Lamborghini’s biggest market. Chief executive officer Stephan Winkelmann said that the carmaker raised its prices last year, but not enough to offset the tariff rates.

The company has not planned further price increases this year “as we do not think this is something helping the market at this time”, he said.

The margin on operating income fell to 24 per cent in 2025 from 27 per cent the year before.

Lamborghini cushioned its external pressures through cost control and increasing sales of pricier vehicles, supported by its 515,000-euro Revuelto sports car and by greater client requests for high-margin vehicle customisation, the company said.

Nearly all vehicles delivered in 2025 featured at least one personalised element, it added.

Winkelmann noted that it was too early to provide forecasts for 2026 because of uncertainties in the business environment. The ongoing war in the Middle East, for example, has disrupted oil supply and logistics, potentially depressing the high-margin luxury car market.

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Backtracking on electric plans

Earlier this year, it cancelled plans for an EV sports car in 2030, citing weak demand and concerns over returns on hefty investments.

“Resistance to EVs has increased significantly worldwide in our segment,” Winkelmann said. “Many customers have tried EVs, but let’s (just) say their experience didn’t quite live up to their expectations.”

He said that the brand was still investing in in-house EV technology, in case the demand shifts in the next decade.

He added: “But I can’t see the trend today, and I don’t see it for tomorrow either.”

Ferrari, the company’s rival, will unveil its first EV in May, and 20 per cent of its line-up should consist of fully electric vehicles by 2030.

Instead of an EV, Lamborghini will launch a plug-in hybrid model in 2030, adding to its existing all-hybrid line-up of three. The new model, Lanzador, will be a “2+2”-seat Grand Tourer, Winkelmann noted. REUTERS