Khaberni - Lamborghini's CEO Stephan Winkelmann said on Thursday that sales and delivery operations in the Middle East have completely stopped as the ongoing conflict in the region has led to the closure of sales agencies and disruption of shipments.
He added, "Activities have stopped. We cannot ship cars. Either the agencies are closed or nobody goes there," and he continued, stating that the company risks losing most of its sales season in the Gulf region.
The Middle East follows a highly seasonal sales pattern, where demand is concentrated before and after the summer, when the intense heat prevents buyers from visiting showrooms.
Winkelmann told journalists after a company event during Milan Fashion Week that the luxury brand owned by Volkswagen is at risk of not recouping the lost sales later in the year.
He added that Lamborghini has been unable to ship cars to most Gulf countries, including the UAE and Oman, while Saudi Arabia was slightly less affected.
While the company looked for alternative ports, including Jeddah, Winkelmann said that rerouting shipments was meaningless as long as the market remained practically closed.
The Middle East accounts for about 450 cars sold annually by Lamborghini, which is nearly five percent of its annual sales volume, but it historically achieves high profit margins, in line with its industry peers.
Other luxury car manufacturers have also halted delivery operations and temporarily closed sales agencies across the Gulf, as the conflict has disrupted logistics and consumer demand.
Winkelmann stated that orders placed months ago are not being delivered on schedule in the region, although cancellations have not been a major issue.
He continued, "If the conflict continues, it will definitely be a problem for us."
Although this is not possible in the short term, Lamborghini may redistribute vehicles to other markets if the conflict persists, a strategy it has used since the start of the pandemic amid other global shocks.
