Bugatti CEO Rimac Says Petrol Supercars Will Dominate Luxury Market

Mate Rimac, CEO of Bugatti and founder of electric hypercar maker Rimac Automobili, told CNBC that the future of ultra-luxury supercars belongs to petrol engines, not batteries. Speaking on August 25, Rimac said mainstream cars will go electric, but wealthy buyers will keep demanding combustion power and hand-crafted mechanics. His new Bugatti Tourbillon, priced at USD $4.5 million (AUD $6.7 million), has already sold out its entire 250-unit run.

The Swiss watch analogy

Rimac compared the supercar market to luxury watchmaking. Only 5% of watches are made in Switzerland, yet that region captures 90% of industry profits. A smartwatch outperforms a mechanical Patek Philippe in every measurable way, but no one pays USD $200,000 for it. Rimac applies the same logic to hypercars: past a certain price point, feeling and craftsmanship matter more than technology.

Two markets, one factory

Rimac’s Croatian facility now builds both the world’s most powerful production electric car, the Nevera, and one of the largest naturally aspirated combustion engines ever made. The Bugatti Tourbillon pairs an 8.3-litre V16 naturally aspirated engine with three electric motors, delivering 1,800 horsepower and 1,000 Newton-metres of torque combined. Only 250 units will be produced worldwide at USD $4.5 million each, and the entire production run has sold out.

From EV pioneer to combustion builder

The irony is stark. Rimac founded Rimac Automobili in 2009 as an electric-only hypercar company. His Nevera set multiple EV records, including a production-EV top speed of 412 km/h, and sold for around EUR 2 million (AUD $3.24 million). In 2021, Rimac gained control of Bugatti from Porsche and Volkswagen. Rather than build a battery-electric Bugatti, Rimac built an 8.3-litre V16 engine that represents one of the largest combustion powerplants in any production car today.

Market split: mass market versus ultra-luxury

Rimac told CNBC that the automotive industry is splitting into two distinct segments. The mainstream market for normal people will be dominated by electric vehicles, many from China. But the upper segment, sports cars and above, will remain combustion-powered for a very long time. Wealthy buyers, Rimac argues, are increasingly rejecting pure battery-electric hypercars in favour of mechanical complexity, hand-crafted details, and emotional appeal.

Final Thoughts

Rimac’s bet on petrol power for ultra-luxury supercars reflects a widening split in the auto industry. While mass-market cars go electric, wealthy buyers value craftsmanship and engine sound over pure performance specs. The Tourbillon’s instant sell-out suggests the market agrees.

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