FERRARI has unveiled a US$423,000 combustion engine sports car meant to help the Italian manufacturer defend its industry-leading margins.

The 12Cilindri, also sold as a 435,000 euro (S$631,908) Spider convertible version, is inspired by Ferrari’s touring cars from the 1960s and represents a fresh option amid several sold-outs. The two-seater shows off Ferrari’s ability to sell cars that on average cost four times as much as those of Porsche.

Ferrari has hiked prices and benefited from its wealthy buyers being less acutely affected by inflation and high interest rates. While the company has started to shift toward battery power, it is relying largely on its highly profitable combustion engine vehicles to bolster margins. Unveiled Thursday (May 2) in Miami ahead of the Formula 1 (F1) Grand Prix in the city, Ferrari’s latest model features a 12-cylinder engine packing 819 horsepower.

Deliveries of the closed-roof version will start by the end of this year, with the convertible arriving in early 2025. A company spokesperson declined to comment on how many would be made. The car has the same cockpit style as the Purosangue, which Ferrari unwrapped in 2022 to enter the lucrative market for sport utility vehicles.

While the new model line demonstrates Ferrari’s continued commitment to combustion engines, chief executive officer Benedetto Vigna has started to pave the way toward electrification. The Maranello, Italy-based manufacturer is building a factory to make hybrid and electric cars that will be ready next month and plans to unveil its first fully electric vehicle (EV) in the fourth quarter of 2025.

Competition to make the transition is intensifying. China’s BYD unveiled a US$233,450 high-performance EV in February that is meant to challenge Ferrari and Lamborghini. While both manufacturers have released hybrid models, Lambo’s own fully electric supercar is not due until 2028. At the same time, demand for EVs has been slowing recently, especially in Europe.