Key takeaways:
- Ferrari confirms continued development of petrol, hybrid, and electric vehicles as part of its diversification strategy
- The company will unveil its first fully electric vehicle on October 9, 2025, while maintaining its commitment to internal combustion engines
- Hybrid models already account for 51% of Ferrari’s car sales as of 2024
- A new e-building facility in Maranello will manufacture all key electric components in-house
- Ferrari aims for a product portfolio composed of 40% ICE and 60% hybrid/electric vehicles by 2026
Luxury sportscar maker Ferrari will continue to develop petrol, hybrid, and full-electric vehicles, Chief Executive Benedetto Vigna confirmed on Wednesday during the company’s annual shareholders’ meeting, underscoring its strategy to offer customers a diverse powertrain lineup while embracing electrification.
Ferrari’s Three-Pronged Powertrain Strategy
“Indeed, in line with our strategy, we continue to invest in all three powertrains… to offer our clients maximum freedom of choice,” Vigna stated1. This multi-powertrain approach comes as Ferrari prepares to unveil its first fully electric model at a capital markets day scheduled for October 9, 2025.
This balanced strategy preserves Ferrari’s legendary internal combustion engine heritage while positioning the company for future growth in the electrified market. Chairman John Elkann emphasized that electrification is not new territory for the iconic Italian brand: “Electrification has been a path that we’ve been pursuing now for decades, starting in Formula One and then from our race cars to our sports cars. We are very excited about unveiling the Ferrari Elettrica (electric).”1
Investment in Manufacturing Capabilities
The company is making significant infrastructure investments to support its electrification plans. Ferrari inaugurated a new manufacturing facility in Maranello last June, known as the e-building, which provides increased manufacturing flexibility for future models. Elkann highlighted the vertical integration of Ferrari’s electric component development: “Now, we can also claim that all our key electric components are developed and handcrafted in Maranello.”1
This strategic approach to manufacturing allows Ferrari to maintain its reputation for exclusivity and craftsmanship as it expands into electric vehicles. The company currently delivers fewer than 14,000 cars annually but is reportedly planning to increase production capacity to around 20,000 units.5
Market Positioning and Sales Mix
Ferrari’s hybrid models, first introduced in 2019, already account for 51% of the company’s car sales.1 According to its 2022-2026 strategic plan, Ferrari aims for a well-diversified product portfolio by 2026, with 60% of models being hybrid or fully electric and 40% powered by internal combustion engines.8
The company plans to unveil 15 new models between 2023 and 2026, maintaining its commitment to exclusivity with limited-production Icona and Supercar models representing less than 5% of total volumes, while Special Series will make up around 10%.8
Investment Implications
For investors, Ferrari’s balanced approach to powertrain technology represents a strategic hedge against regulatory uncertainties while maintaining the brand’s premium positioning. The company has outlined ambitious financial targets, including achieving net revenues of up to €6.7 billion in 2026 (a 9% compound annual growth rate) and EBITDA of €2.5-2.7 billion with margins of 38-40% by 2026.8
Ferrari also plans to increase its dividend payout from 30% to 35% of adjusted net income starting from 2022 and has announced a share repurchase program of approximately €2 billion through 2026, signaling confidence in its financial outlook despite the significant investments required for its electrification strategy.8
Conclusion
Ferrari’s multi-powertrain strategy reflects a pragmatic approach to the automotive industry’s electrification transition. By continuing to invest in internal combustion, hybrid, and fully electric technologies simultaneously, the company is positioning itself to meet evolving market demands and regulatory requirements while preserving its brand heritage.
For retail investors, Ferrari’s strategic direction offers an interesting case study in how legacy luxury brands can navigate the green transition while maintaining premium positioning and shareholder returns. The company’s controlled production volumes, focus on exclusivity, and balanced approach to new technologies suggest a sustainable path forward in an otherwise turbulent automotive landscape.
References
1 Reuters (2025-04-16). “Ferrari prepared for years for its first EV, chairman says”. Reuters. Retrieved April 16, 2025.
5 Hemma Visavadia (2025-04-16). “Major car brand to back petrol ‘for decades’ in push for ‘freedom of choice'”. GB News. Retrieved April 16, 2025.
8 Ferrari (2022-06-16). “Ferrari Capital Markets Day”. Ferrari Corporate. Retrieved April 16, 2025.