Ferrari is pinning its hopes on its first all-electric supercar to revive sales in China, banking on favorable tariff and tax treatment for electric vehicles in the world’s largest auto market. The upcoming Elettrica EV, set to debut in October, is expected to benefit from a much lower compound tax rate of about 30 percent of the manufacturer’s suggested retail price far less than the hefty import, consumption, and value-added taxes imposed on traditional Ferrari models powered by 12-cylinder engines.
Ferrari’s CEO, Benedetto Vigna, highlighted in a recent earnings call that one of the models launching this year will be tailored to suit the Greater China region, though he did not disclose specific details. “That will improve the picture,” Vigna said, referring to the company’s performance in China.
The luxury automaker’s move comes as Ferrari’s sales in China have been slipping, reflecting subdued demand for high-end vehicles. The landscape is further complicated by aggressive competition from local manufacturers like BYD, which are entering the premium segment with their own advanced electric models. In the first quarter of the year, Ferrari’s shipments to Greater China plummeted by 25 percent, marking the lowest figure in nearly four years.
China’s luxury car market as a whole has contracted significantly. In 2024, total sales in the 500,000 yuan ($69,200) and above segment dropped by about 20 percent compared to previous years, reaching around 677,000 units, according to Thinkercar. The broader decline is attributed to economic challenges and weakening consumer confidence.
Historically, Ferrari has limited its exposure in China, shipping only about 10 percent of its total global vehicles to the region. However, Vigna has hinted that this cap could be reconsidered as the company deepens its presence in the electric vehicle sector.
Chinese policy has long discouraged the influx of fuel-intensive combustion-engine vehicles, imposing a combined tariff and tax regime that can nearly quadruple the final cost of high-performance imports. For example, imported cars with engines over four liters face a 15 percent import tariff, a 40 percent consumption tax, and a minimum 13 percent VAT. In contrast, electric vehicles are exempt from the consumption tax—giving Ferrari’s Elettrica a competitive edge over its petrol-powered siblings.
The United States remains Ferrari’s largest single market, where the automaker is also considering price increases on certain models due to U.S. tariffs. As global trade tensions and local regulations reshape the landscape for luxury automakers, Ferrari’s pivot toward electrification could prove vital for reclaiming its footing in China’s evolving marketplace.
