Volkswagen (VWAGY) group’s Lamborghini is pulling the plug on its upcoming luxury EV.
In an interview with the Sunday Times, CEO Stephan Winkelmann confirmed the SUV-like EV, dubbed the Lanzador, will no longer join the Lamborghini lineup. The car was initially slated for a 2028 release but had been pushed back numerous times.
“Investing heavily in full-EV development when the market and customer base are not ready would be an expensive hobby, and financially irresponsible toward shareholders, customers, [and] to our employees and their families,” Winkelmann said, adding that the “acceptance curve” for pure EVs in Lamborghini’s target market was flattening and “close to zero,” per the Times.
In a statement to Yahoo Finance, Lamborghini said that it was “fully prepared for full electric; however, market readiness within the segment is not yet aligned with this transition.”
Lamborghini said the Lanzador will be replaced by a plug-in hybrid electric vehicle (PHEV), which is currently the powertrain of choice for its main vehicles, the Urus SUV and Temerario and Revuelto supercars. The next-generation Urus, coming in 2029, will remain a PHEV despite originally being planned as another EV.
The decision to end development came despite mass-market EVs having appeal in Europe.
Winklemann said the decision to cancel the Lanzador was made over the past year, with the company gauging feedback from customers and dealers, as well as looking at the market dynamics in general.
The problem is that the luxury end of the market was a tough sell for pure electric power, which did not provide the “emotional” response of powerful gas engines; meaning a loud, throaty exhaust remains a crucial selling point in the luxury car market, among other things.
To that end, Lamborghini would continue to build internal combustion engines “for as long as possible,” he said.
The Italian luxury automaker’s reversal with EVs, though not surprising, is an about-face for Winkelmann and Lamborghini.
Back in 2023, the company was all in on EVs, with the world premiere of the Lanzador prototype in August at the Super Bowl for luxury autos, Monterey Car Week.
A limited group of outlets, including Yahoo Finance, were given the nearly unheard of opportunity of driving the prototype on a closed stretch of 17-Mile Drive in Pebble Beach, Calif. It was an indication of how strongly Lamborghini — and Winkelmann — predicted an EV would be game-changing from a design and propulsion standpoint.
But that has changed, especially for automakers in the luxury sector. The only current luxury EV in the space is the Rolls-Royce (BMW.DE) Cullinan, which has been something of a hit for the British automaker as its clients prefer low-end torque and pure “waftability,” which Rolls describes as a smooth, effortless driving experience.