Mate Rimac urges European automakers to focus on luxury niche

Mate Rimac, CEO of Bugatti Rimac, has proposed a strategic shift for the European automotive industry to combat rising competition from China. Rather than attempting to compete directly with Chinese manufacturers on technological trends—such as larger screens, faster charging, and minimal physical buttons—Rimac argues that Europe should focus on its unique strengths: luxury, craftsmanship, and premium materials.

Rimac suggests that European manufacturers should seek a high-end niche similar to the Swiss watchmaking industry. He noted that while Swiss companies produce only a small percentage of the world's watches, they capture the vast majority of the sector's profits by prioritizing exclusivity and quality over mass production.

To illustrate his point, Rimac highlighted the interiors of classic luxury vehicles, such as the Bentley Arnage and Rolls-Royce Silver Seraph, emphasizing the value of tactile switches, genuine wood, leather, and deep carpets. He cautioned against spending hundreds of millions on consultants to replicate the tech-heavy approach of Chinese competitors, advocating instead for a return to the synergy of high-quality, traditional luxury elements.