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Bugatti CEO Mate Rimac Predicts Combustion Engines Will Define Future Supercar Market
Consumer Durables · Motor Vehicles · cnbc · 2026-08-25
RACE
Bugatti CEO Mate Rimac argues that the ultra-luxury car market is shifting toward mechanical craftsmanship, distancing itself from the mass-market EV trend.
What Happened
Strategic Market Positioning: Bugatti CEO Mate Rimac believes the supercar sector is entering a 'Swiss watch phase' where wealthy buyers prioritize mechanical artistry over electronic utility. While the broader automotive industry shifts toward mass-market electric vehicles, the ultra-luxury segment is expected to retain internal combustion engines for their emotional and aesthetic appeal.
Product Philosophy and Innovation: Despite his background as an EV entrepreneur, Rimac is overseeing the production of the Tourbillon, a hybrid supercar featuring a massive 8.3-liter V16 combustion engine. The company maintains a unique production environment in Croatia where high-performance electric vehicles and complex combustion engines are built on the same assembly line.
Profitability and Personalization: Customization has become a critical revenue driver for Bugatti, with customers frequently adding hundreds of thousands of dollars in bespoke features to their vehicles. The company aims to maintain high profitability and exclusivity, limiting annual production to low three-digit figures while focusing on unique, one-off designs.
Financial Outlook and Valuation: Bugatti reported 200 million euros in EBITDA last year and continues to see strong profit growth potential. With recent ownership shifts, including Porsche's stake sale, Rimac estimates the company's valuation to be significantly higher than $2 billion, underscoring its status as a highly profitable niche player.