Market Reports , ,

THE seemingly unstoppable popularity of SUVs has just lured another car-maker, Italian specialist Maserati, into its fast-selling segment.

It’s nothing new. Porsche admits its Cayenne SUV, launched in 2002, helped save it from potential ruin. It sold 30,000 units in 2003, equal to the 911 sports-car, but in 2015, 73,000 Cayennes were sold compared with 31,000 911s.

It is a tantalising success story that Maserati could not resist.

Levante Customization - Click to enlarge

Levante Customization – Click to enlarge

Maserati this month announced its first SUV, the Levante, will be in Australian and New Zealand showrooms in January 2017 and it expects the luxury crossover to account for more than 50 per cent of sales next year.

But where will the customers come from?

Maserati Australia, New Zealand and South Africa chief operating officer Glen Sealey said most will be new customers to the brand, lured from other prestige marques.

Maserati Levante Interior

Maserati Levante Interior

A smaller portion, he said, would be existing Maserati owners replacing their current car and an even smaller slice of these would be adding another Maserati to the garage.

The twist is that an SUV is new ground for Maserati dealers as much as it is for customers. The company has always been very low volume.

In 2012, Maserati was involved in eight per cent of the global luxury sports-car segment and had a four per cent stake in the world premium sedan market with its V8-engined Quattroporte.

Levante For Australia - Click to enlarge

Levante For Australia – Click to enlarge

In 2013, Maserati added a V6 and a diesel engine to the Quattroporte, lifting its share again, and then introduced the mid-size Ghibli which grabbed 26 per cent of its luxury sector.

The Levante fills out the market in which Maserati plays with hopes that the new SUV can take 50 per cent of its niche segment.

Mr Sealey said he expects sales to accelerate to 1000 during the 2017 calendar year in Australia and New Zealand (which represents 10 per cent of the total), with Levante contributing 500-600 units.

That is big news because, by comparison, Maserati sold 60 cars a year just 16 years ago. Then, last year, it sold 519, so the one new SUV model will radically change the showroom makeup of Maserati dealers.

To support the expansion, an eighth dealer will be added to the national network.

Maserati will pitch the Levante against all upmarket SUVs but especially sees the main rivals as the Range Rover Sport and Porsche Cayenne.

However, Mr Sealey said he believes the Levante is a slightly different product, aiming at buyers who want a blend of the three luxury SUV characteristics – sporty performance, luxury and offroad ability. These three characteristics, he said, were not available in equal doses with the competitors.

“Maserati is an exclusive brand. It’s not prestige – which are generally lower in price – and it’s not exotic,” he said.

“It occupies the ‘exclusive’ sector of the market and that’s why it has few competitors.”

What will customers buy? Maserati will only sell the Levante with a diesel engine – and no petrol option is in sight – and in three trim levels.

The entry-level Levante will be $139,990 plus on-road costs, and the Levante Sport and Levante Luxury will each cost $159,990.

Maserati will also offer a limited-edition Zegna variant with upmarket equipment including silk and leather upholstery, but there is no timing or price on this version.

That is prime territory of Porsche Cayenne, Mercedes-Benz GLE, Range Rover Sport, Audi Q7 and BMW X5/X6.

It may also drag buyers away from similarly-priced sedans – there are six brands offering sedans around the $140,000 figure in the prestige and luxury segment – and a few may come in from the sportscar sector.

Mr Sealey said the customer relationship aspect was vitally important to the success of the Levante. One point of difference is the planned ownership program.

Maserati Australia - Click to enlarge

Maserati Australia – Click to enlarge

“We think we will have the lowest service costs compared with our rivals,” he said.

“We also have a pre-paid service program that is factory designed and backed – not from an independent service provider.

“Buyers can opt for an extended, five-year warranty and cover for the drivetrain for up to eight years – all from the factory.

“So in addition to what we think is a very exclusive SUV, it has a lot of features designed to make ownership easier and cheaper.”

The Maserati Levante will go on sale in Australia in early 2017 and already has a waiting list.

By Neil Dowling

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