The most profitable luxury car brand isn't Porsche, Lamborghini or BMW

When it comes to the most profitable luxury car brand, the crown doesn’t go to Porsche or BMW, but rather to the prancing horse itself: Ferrari.

While other automakers are tightening belts and chasing EV dreams, Ferrari is casually revving past them all, leaving a trail of dollar signs and carbon fiber in its wake.

In an era where profit margins are shrinking faster than fuel tanks, the Italian carmaker is defying the market with record-breaking success.

Here’s how the prancing horse turned exclusivity into an art form and profit into a lifestyle.

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Ferrari is the most profitable luxury car brand by far

According to Ferrari’s 2024 report, the brand experienced the best year in its history last year.

Its operating profit margin was 28.3 percent, which compared favorably to Porsche, whose own margin dropped to 14.1 percent in 2024.

In fact, the company’s net profit in 2024 was $1,764 million (€1,526 million), which means it made roughly $128,387 profit per car sold.

While a company like BMW earned $8,877 million (€7,678 million) in profit, around five times that of Ferrari, in 2024, this sounds a lot less impressive after you factor in the fact that BMW sold 2.45 million cars.

This translates to around $3,624 in profit per vehicle, which is just enough to pay for the annual fuel costs for a Ferrari.

So, what makes the Italian carmaker the most profitable luxury car brand in the world?

Well, according to experts, this is largely because it has more in common with luxury fashion company Hermès, compared to a fellow carmaker like Toyota.

By producing only 13,000 to 14,000 cars every year, Ferraris are guaranteed to be collectibles.

The company also has its famed ‘Tailor Made’ and ‘Atelier’ programs, where customers can customize everything from the seat stitching to the carbon fiber weave.

These bespoke options can add hundreds of thousands of dollars to a single build, and customers gladly pay for it.

Even its own F1 drivers don’t receive discounts

Another reason why the company’s profit margin is so healthy compared to competitors like Porsche is due to the lack of discounts.

While it’s a relatively common practice for conventional carmakers like Hyundai to give discounts to boost sales, the prancing horse never lowers its prices.

Famously, even its own F1 drivers don’t get a deal, although it hasn’t stopped F1 driver Carlos Sainz from amassing a fleet of Ferrari supercars.

The company also earns about 10 percent of its revenue through merchandise, sponsorships, and licensing, with the Prancing Horse logo alone worth over $15 billion globally.

So while other automakers may chase volume, Ferrari seems content to sell dreams.

After all, it seems that these dreams have incredible profit margins.

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