Do the bosses no longer love Maserati?

Author | Wang Xiaojuan Editor | Zhou Zhiyu In the face of a major market change, even top luxury car brands cannot escape the fate of decline. Since the beginning of this year, Maserati, once the most common top luxury car brand in movies and TV shows, has also seen a sharp drop in sales, with even the general manager for the China region being replaced. In the first 8 months of this year, Maserati sold a total of 840 cars in the domestic market, a 74% year-on-year decrease. Especially in the past two months, sales have dropped to just over 30 units. With such a significant decline in sales, Maserati is showing signs of urgency. After all, the Chinese market has always been one of Maserati's largest single markets. In 2016, the Chinese market accounted for about 30% of Maserati's total sales. Maserati is no longer favored by the wealthy, mainly because its product competitiveness has been eroded by the continuous impact of new energy luxury cars. In the past two years, Maserati's product lineup has been relatively weak. It is well known for its sports cars, but it has few well-known new models. Currently, the models available for sale in China include Ghibli, Levante, Grecale, as well as sports cars like the MC20 and GT. Focusing on customization and personalization, Maserati finds it difficult to achieve high sales volume. Without fresh models for a long period of time, it is hard for users to choose it from a variety of brands. In recent years, the fate of luxury cars in the Chinese market has been more or less the same. After sales decline, prices have softened. At the retail end, many dealerships have indicated that the entry-level model Levante of Maserati can be directly discounted by about 30%, available at a price starting from around 700,000 yuan. However, price reduction does not seem to be effective. In the macro automotive market, overly frequent price wars have exhausted the industry, with only a few new cars expected to achieve some results in intense price competition. In the luxury car market, Porsche was the first to see price collapses last year, but sales did not rebound, becoming a typical representative of luxury car decline. On the other hand, new energy luxury cars have emerged, also impacting the traditional luxury car market. Not to mention the U8, which sells over 300 units per month at a price of over one million yuan, the Aito M9 priced around 500,000 yuan is also competitive in the eyes of many traditional luxury car users. Compared to the sportiness represented by these traditional brands, the wealthy are also willing to experience the technology-filled luxury. After the emergence of these new energy brands, their presence in the market has grown, attracting the attention of many former luxury car buyers. Naturally, the sales of these former luxury cars have declined. In an effort to revive declining sales, Maserati recently appointed a new manager for the Chinese market. On September 25th, Maserati announced the appointment of Yu Hanbang as the new General Manager for China, responsible for the Trident brand's business operations in China, with immediate effect. Yu Hanbang, the newly appointed manager, has previously held key management positions at well-known companies such as Jeep China, SAIC MG Europe, and SAIC Volkswagen. Maserati CEO Davide Grasso has high hopes for the successor, stating that Mr. Yu Hanbang has a deep understanding of the Chinese market. "Under his leadership, the Trident brand will continue to deepen its business in China and strive to achieve the development goals of a new era." However, the decline in sales is not just a problem for Maserati. It remains to be seen whether Yohan Ban can turn the situation around. From January to August this year, top luxury car brands such as Bentley, Ferrari, Rolls-Royce, Lamborghini, Aston Martin, and McLaren all experienced sales declines of more than double digits in the Chinese market. Among them, McLaren plummeted by 88%. The overall import volume of imported cars is also declining, with luxury cars being more affected. According to data from the China Passenger Car Association, the import volume of cars in China has been declining at an average annual rate of about 8% since 2017, dropping to only 800,000 units by 2023. From January to August 2024, car imports totaled 480,000 units, a 2% decrease compared to the previous year. Based on the data from January to August, this marks the third consecutive year of decline. In addition to changing management, Maserati has also introduced some new models. In 2024, Maserati has successively released models such as the GranCabrio Trofeo, GranCabrio Folgore, and GT2 Stradale, but these models have not yet reflected in sales. Of course, Maserati is not sitting still but actively transitioning to electrification. According to the official website, by 2025, all Maserati models will offer full electric versions, and by 2028, the entire Maserati lineup will operate solely on electricity. However, electrification does not seem to be a lifesaver for top luxury cars, as brands that have actively transitioned to electrification in the past have not seen an improvement in sales. The declining sales have quickly impacted the group's financial situation. In the first half of this year, Stellantis' net revenue was 85 billion euros, a 14% year-on-year decrease; net profit was 5.6 billion euros, a 48% year-on-year decrease. Faced with a significant drop in profits, the group plans to shut down unprofitable brands. Maserati is rumored to be up for sale. Previously, there were reports that Stellantis was considering selling its ultra-luxury car brand Maserati to Chinese car companies, with Chery possibly being one of the potential buyers. However, on September 29, Chery denied this rumor. The performance of Maserati and other luxury cars this year tells the market that in the current environment, no one can simply sit back and make money continuously. It is necessary to face challenges, actively reform, and seize new opportunities.