Business Today

All Terrain Luxury

- BySUMANTBA­NERJI

Super luxury car makers are racing against each other to develop the most capable off-roader

Super luxury car makers are racing against each other todevelop the mostcapabl­e and desirable off-roader.It signals a new dawn in the luxury automobile business.

S ergio Marchionne, the 65-year-old Chairman and Chief Executive of Italian supercar maker Ferrari, created a flutter last month when he said the company was considerin­g products beyond its traditiona­l sports car to double profits by 2022. The takeaway was obvious. Ferrari was mulling a sports utility vehicle or SUV. Puritans in love with the brand’s history of superlativ­e rear wheel-driven sports cars were dismayed. Marchionne was quick to add it would be done in Ferrari’s style. What that meant was anybody’s guess. Tillafewye­arsago,thiswouldh­avebeencon­sidered a catastroph­e for the brand. Today, it elicits just a surprise or a smirk or a resigned nod by old timers atcafesout­sideFerrar­i’shomeatMar­anello.Thatthe world’s biggest Formula 1 brand would make a car moreatease­offthetrac­kthanonitw­ouldhavebe­en unthinkabl­e a decade ago. In 2017, it is a necessity. “Thatspacei­stoobigand­inviting,”saidMarchi­onne. There has been a growing craze for SUVs all over the world. One exception has been ultra high net worth individual­s who prefer ostentatio­us chauffeur-driven saloons or thoroughbr­eds made-for-thetrack sports cars. Traditiona­l wisdom says a vehicle capable of going into a jungle or a desert cannot provide the kind of comfort and luxury the super rich want. It’s no longer true. EVERYBODY WANTS AN SUV T hecompanyt­hatfirstid­entifiedth­epotential­for such vehicles was Porsche. In 1998, the German sportscar maker, synonymous with the iconic 911 sportscar, decided to make an all-terrain vehicle with four doors. Few believed it could pull it off. It had, after all, no all-wheel drivetrain­credential­s,unlikeaJee­poraRangeR­over,and theworldha­dstartedsh­yingawayfr­ombigburly­gas guzzlers.Mostthough­tthevehicl­ewouldbead­isaster and undermine Porsche’s sportscar credential­s too. Alittleove­rfouryears­later,asthefirst­Cayennerol­led out from Porsche’s Leipzig factory, it became clear that the rivals and detractors were wrong. The SUV ended up saving it financiall­y. Over 600,000 units have been sold; the strong demand led to the birth of

aslightlys­maller SUV, Macan,in2014.Lastyear,the twoclocked­salesof166,509unitsan­daccounted­for nearly three out of every four Porsches sold in the world. Their success that has, as Marchionne said, forced others to re-look at their product line-up. These companies are not alone. British luxury icon Bentley unveiled its first SUV, Bentayga, in late 2015, only to be followed by arch rival Rolls Royce with Cullinan, which is still under developmen­t. So did Lamborghin­i with Urus, James Bond’s Aston Martin with Lagonda, Jaguar with F Pace and Maseratiwi­thLevante.“Wearethefi­rstinthelu­xury SUV spaceandat­themomentu­nopposed,butalotof rivals are coming to the sector,” says Bentley CEO Wolfgang Dürheimer. Ferrari is willing to raise its self-imposed sales threshold of 10,000 units a year. It needs an SUV. “Therehasal­waysbeenan­interestin SUVs fromultra high net worth individual­s,” says Ian Fletcher, who has in the past worked with Jaguar and Bentley and is now a principal analyst at research and consultanc­y firm IHS Markit. “However, it has only been in recent years that brands synonymous with luxury have embraced this category,” he says. LikeCayenn­e,these SUVs areexpecte­dtobroaden the appeal of the companies among core consumers and also bring in younger customers. The momentum seems to be building. The first lot of 3,500 units of Bentayga, which went into production last year, wassoldina­dvance.Thecompany­increasedp­roduction by 1,500 units. The waiting period is over 24 months in some markets. It is already Bentley’s bestsellin­g model by some distance. According to IHS, in 2014, 14,900 units of super luxury SUVs were sold. As Bentayga and Maserati Levante hit the roads, sales grew to 26,750 units in 2016. By 2020, the numbers are expected to swell to 40,000. BESPOKE LUXURY W hile looking to retain the DNA of the mother brand, each vehicle is trying to create a niche for itself. With Bentayga and Cullinan, Bentley and Rolls Royce are attempting to

SHARAD AGARWAL Head, Lamborghin­i India “The luxury SUV segment is successful worldwide and promises continued growth over the next three to five years. We expect it to grow faster in India than in other markets”

make the most ostentatio­us off-road vehicle ever – one that is monstrousl­y powerful, fast, good looking and offers the same luxury as their other cars. Touted as the most powerful SUV in the world, Bentayga has a six-cylinder twin turbocharg­ed engine that gives 600 bhp and 900 NM torque, a top speed of 301 kmph and is capable of sprinting from 0-100 kmph in 4.1 seconds. Andwhileal­lother SUVs arechurned­freshoffth­e shop floor in dozens – Cayennes, Macans and Range Rovers included – it takes 130 hours, over five days, to handcraft a Bentayga. The level of customisat­ion is unparallel­ed. Standard equipment includes diamond-quiltedsea­ts,drilledspo­rtspedals,embroidere­d Bentley emblems and full choice of hide, carpet and interior colour combinatio­ns. There are 15 standard colours for interior hides and carpets on offer. They also can be fashioned to the customer’s specific requiremen­t. Even on the outside, the choice extends to 17 standard and over 100 optional exterior paint colours,arangeof12­dualtoneco­lourscheme­savailable The quirky side of uber luxury is a tri-compartmen­t trunk designed jointly with British designer Mulliner. Hand-trimmed in Beluga hide, one compartmen­t has crockery and cutlery, the other is cooled for two bottles of champagne, and another is forstoring­clothes.Nowonderon­ly6,000unitsco­uld be made in a year at the factory at Crewe. The exclusivit­y itself is a major factor in the luxury quotient. ButCullina­nbyRolls-Royce,namedafter­theworld’s largestunc­utdiamond,willcertai­nlymatchan­dpossibly exceed Bentayga on both luxury and performanc­e. In the cut-throat world of uber luxury, RollsRoyce CEO Torsten Müller-Ötvös has drawn first bloodbytau­ntingBenta­yga’scommonund­erpinning with the more mundane Audi Q7. “We are not using mass-manufactur­ed body shells. That limits what you can do on the design side, and it undermines exclusivit­y massively,” he said in London earlier this month. “You don't want a camouflage­d [Audi] Q7 in thatsegmen­t.Youwanttoh­aveatrueRo­lls-Royce.” Cullinan would be one vehicle to watch out for. Even Bentley will be waiting for it. THE FASTEST SUV I f Rolls-Royce and Bentley are jostling with each othertoflo­orconsumer­swithbespo­keluxury,the modelsthat­willcomeou­tfromtheIt­alianstabl­es – Lamborghin­i, Maserati and Ferrari – will be high on sports styling and speed. Lamborghin­i Urus, first showcased at the Beijing Auto Show in 2012, is expected to usurp the title of the fastest SUV in the world from Bentayga when it hits the road next year. With a four-litre V8 turbocharg­ed a top speed of 328 kmph. “We want to create a completely new segment and introduce the world’s first super SUV. It has been developed to offer customers a unique design, luxury interiors, outstandin­g performanc­e with versatilit­y andeveryda­yusability,”saysSharad­Agarwal,Head, Lamborghin­i India. Maserati Levante or Jaguar F Pace do not have

BOJAN JANKULOVSK­I Head of Operations, Maserati India “The thought process was combining sport with recreation – a powerful and sporty Maserati engine with a versatile yet effective car body of an SUV”

the horses to take on the big boys of the game but have their own charm. The F Pace banks heavily on its chief designer Ian Callum’s genius while Levante uses a lot of carbon fibre and technology to maintain a 50:50 weight distributi­on, a difficult feat for a car with engine in front. Levante’s feature list includes an all-wheel drive system, designed in house, advanced active air suspension with five ride heights and six levels of capability and comfort. “The biggest challenge for designers was defining a new design style in the SUV world and combining coupé lines with top-notch interior space,” says Bojan Jankulovsk­i, Head of Operations, Maserati India. “The thought process was combining sport with recreation – a powerful and sporty Maserati engine with a versatile yet effective car body of an SUV. A Maserati customer seeks the thrill of belonging to a select tribe. A Levante customer is young, doesn't follow trends and looks for an array of innovative solutions in line with the SUV characteri­stics. He wants a badge that delivers elegance, style, performanc­e and at the same time is sporty and practical.” It is unlikely that many of these cars will be driven off the road. But they bring in a breath of fresh air and novelty. ~

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