Rimac Urged Luxury Shift for European Automakers
European car brands should favor premium materials over competing with Chinese tech features to ensure future growth.
Updated on Oct. 8, 2026 in Electric Vehicles
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Should European car brands prioritize traditional luxury materials instead of large screens and advanced tech features?
Rimac Group and Bugatti CEO Mate Rimac has advised European automakers to focus on luxury craftsmanship to differentiate their products from Chinese electric vehicle technology. This strategy shift aims to help European brands secure profitability while competing against manufacturers known for superior screen size and charging speeds.
Why it matters
By targeting luxury niches rather than competing directly on high-tech digital features, European manufacturers may better protect their profit margins. This approach is modeled after the Swiss watch industry, which maintains high profitability by focusing on prestige.
Swiss watchmakers command 90% of total global industry profits while accounting for only 5% of worldwide volume. European automakers now face similar pressure following the removal of Volkswagen from the 50-company Euro Stoxx 50 index on September 21, 2026.
The players
Mate Rimac
The CEO of the Rimac Group and Bugatti who advocates for high-end, luxury-focused automotive design.
Volkswagen
A major European automotive manufacturer that was recently removed from the Euro Stoxx 50 index.
Ferrari
A luxury automotive manufacturer that has successfully pre-sold the initial production run of its first electric vehicle, the Luce.
The details
Mate Rimac argues that European manufacturers struggle to match the rapid recharge speeds and expansive screen technology integrated by Chinese electric vehicle brands. Instead, he suggests that firms emphasize classic premium materials like leather, wood, and wool. This shift away from button-free controls and massive digital displays is intended to capture high-end market segments, a strategy evidenced by the fact that Ferrari has already sold out the first production allocation of its first fully electric car, the Luce.
Timeline
Volkswagen was removed from the Euro Stoxx 50 index on September 21, 2026.
Mate Rimac provided his strategic advice on October 8, 2026.
The Home Front
The exclusion of Volkswagen from the Euro Stoxx 50 index highlights the mounting challenges facing legacy European automotive manufacturers. This transition follows a broader trend where traditional industry leaders must redefine their value proposition in a shifting electric market.
If you are planning to purchase an electric vehicle, consider whether your preference leans toward high-tech digital interfaces or traditional interior craftsmanship. Keep an eye on brand luxury strategies, as these will likely determine which vehicles maintain higher resale values in the coming years.
The takeaway
European automakers are pivoting toward luxury materials to survive intense competition from high-tech Chinese electric vehicle imports. Car buyers should research whether their next vehicle prioritizes physical tactile controls or digital-first technology to ensure the interior design matches their daily needs.
Further reading
Explore the latest developments in the Electric Vehicles sector as manufacturers adapt to new market demands.
Live Poll
Should European car brands prioritize traditional luxury materials instead of large screens and advanced tech features?
