Bugatti CEO Bets on Combustion as Supercar Market Shifts

Mate Rimac, the entrepreneur who pivoted to lead the legendary marque in 2021, envisions a bifurcated automotive future. While the mass market accelerates toward electrification, he argues the ultra-luxury tier is entering a "Swiss watch phase," where wealthy collectors reject digital utility in favor of purely mechanical, internal combustion craftsmanship.

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Bugatti CEO Bets on Combustion as Supercar Market Shifts

The automotive landscape is fracturing into two distinct realities. Mainstream buyers are increasingly served by lower-priced electric vehicles, frequently sourced from China. Conversely, the pinnacle of the supercar market is trending toward emotional, high-performance machinery that prioritizes visceral experience over electronic efficiency.

Rimac draws a direct parallel to the horological industry, where digital smartwatches dominate volume but mechanical timepieces command extreme value. By his estimation, while 95% of watches are not Swiss-made, the remaining 5% capture nearly 90% of the sector's profits. He believes supercars will follow this trajectory: an Apple Watch may offer superior functionality, but it lacks the enduring prestige of a hand-crafted mechanical movement. Consequently, he expects combustion engines to remain the standard for high-end sports cars for the foreseeable future, catering to a clientele that values precision engineering and legacy over technological convenience.

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