Mate Rimac predicts luxury car market will retain combustion engines

Mate Rimac, CEO of Bugatti Rimac, predicts a structural split in the automotive market where mass-market vehicles transition to electric power while the luxury and supercar segments retain internal combustion engines for a long time.

Comparing the industry to the watch market, Rimac noted that while digital devices like smartwatches dominate volume, high-end mechanical Swiss watches remain the standard for wealthy collectors due to their craftsmanship and emotional experience. He suggests that for ultra-luxury buyers, performance metrics are becoming secondary to identity and personalization.

Bugatti is currently focusing on this high-end niche with its Tourbillon model, which features a naturally aspirated 8.3-liter V16 hybrid powertrain producing approximately 1,800 horsepower. All 250 planned units of the Tourbillon have reportedly been sold, with prices starting between $3.8 million and $4.5 million. Rimac emphasized that the company aims to prioritize exclusivity and high-margin customization over mass production volumes.