New Delhi

Ferrari NV is developing an extended warranty service for its upcoming hybrid and electric supercars to address potential customer concerns about battery longevity. 

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The Italian luxury automaker plans to offer an annual subscription service priced at approximately €7,000 ($7,500) for battery coverage. This service will include battery replacement for hybrid models, such as the €418,000 plug-in hybrid SF90 Stradale, after eight years of use and will cover related defects.

This approach aligns with practices of other high-end automakers like Bugatti and Aston Martin, who charge significant fees for vehicle servicing to generate additional revenue. For instance, Aston Martin's $3 million Valkyrie comes with a fee of nearly $450,000 over three years, while Bugatti's Chiron has a four-year extended warranty costing around $170,000.

Ferrari intends to extend this battery subscription service to its first all-electric vehicle, scheduled for release late next year. The plan includes a second battery pack replacement automatically scheduled for the vehicle's 16 year. Currently, all Ferrari models come with a standard three-year warranty, with hybrid models having extended five-year coverage for battery and related components.

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This battery-pack subscription service is part of CEO Benedetto Vigna's broader strategy to explore new revenue streams while fostering customer loyalty. Available through official Ferrari dealers, the service aims to maintain the resale value of the vehicles and help overcome consumer hesitation about transitioning from traditional combustion engines to electric powertrains.

Hybrid models have gained significant traction in Ferrari's lineup, accounting for about half of the company's shipments in the most recent quarter. In 2022, Ferrari's total sales approached 14,000 cars, with production runs typically selling out well in advance.

The company is navigating a transition period, balancing between electric vehicle (EV) technology and traditional combustion engines. This strategy allows Ferrari to cater to both traditional customers and younger clients with varying preferences, while also complying with increasingly stringent CO2 emissions regulations. Despite a cooling demand for EVs in the broader market, Vigna has committed to pushing forward with electrification plans for the brand.

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Despite the push towards electrification, Ferrari remains committed to internal combustion engines, especially given potential developments in synthetic fuels. The E-Building will complement existing production lines, with older facilities potentially being used for limited edition models.

The new facility's design emphasises natural light and modern architecture, similar to Apple's Cupertino headquarters. It includes dedicated areas for EV and hybrid component production.

Ferrari acknowledges the challenges in replicating the engagement and sensory experience of petrol-powered supercars in electric vehicles. The E-Building represents Ferrari's effort to blend its storied heritage with future technologies, aiming to create electric vehicles that embody the brand's signature performance and emotional appeal.