Looking at the current heights of automotive engineering, there is a subtle yet significant transformation taking place under the hood of the hypercar industry. While conventional commuter vehicles continue transitioning toward battery-electric architectures, the high-end performance machines take quite a divergent path. Mate Rimac, a 38-year-old CEO of Bugatti Rimac, predicts that the internal combustion engines will reign in the top-tier supercar sector for decades to come. Such a statement is especially interesting considering the background and career of the man himself and his deep roots in electric vehicle development.

His views offer a unique insight into how emotional drive, engineering craft, and passion in automobiles will evolve in the increasingly automated world. Rimac is no stranger to advanced electric vehicle technologies, and knowing his position requires understanding how his career, and the entire company’s strategy came to this particular intersection. His journey combines the mindset of the innovative EV developer with the responsibilities of leading one of the oldest and most illustrious combustion brands, and that is precisely why his views on the future of supercars deserve attention. 

1. Rimac’s Contrarian Bet on Combustion

When Rimac Group took control of Bugatti from Porsche and Volkswagen in 2021, industry insiders were sure that the newly founded Bugatti Rimac Group will present an all-electric Bugatti. With the reputation of the EV pioneer, it was only natural to expect that Rimac will move the historically French brand to its electric philosophy. However, that expectation was completely wrong, setting a scene for one of the most unexpected strategy reversals in the recent history of the industry. 

A Surprising Strategic Pivot:

• Bugatti Rimac formed in 2021
• Industry expected an all-electric car
• Rimac known as EV pioneer
• Chose combustion instead
• Delighted core enthusiasts

Rimac reversed its strategy in a way that surprised casual viewers but delighted hard-core automotive enthusiasts worldwide. He backed the development of a brand-new, naturally aspirated internal combustion engine that will generate pure mechanical excitement. This decision indicated that Rimac was ready to set aside his personal experience with EVs to make a bold strategic choice, which also reassured the Bugatti’s loyal collectors that the spirit of their beloved brand is safe with him. 

2. From EV Pioneer to Bugatti’s Chief

Rimac’s amazing career in the automotive industry started years ago with a broken BMW that he converted to electric himself. That small project eventually led to the founding of Rimac Group in 2009, a software-driven all-electric brand that challenged the boundaries of battery performance. What started as a personal hobby in his garage became one of the leaders in electric powertrains supply. That background gave Rimac the necessary credibility that is missing from most of the modern executives specializing in the world of combustion engines. 

Rimac’s Origin Story:

• Started with converted BMW
• Founded Rimac Group in 2009
• Focused on EV software
• Pushed battery performance limits
• Now leads two opposite brands

Today Rimac is in charge of two of the most legendary brands, representing completely opposite sides of the automotive industry. The experience of working with EVs combined with his current role as Bugatti’s leader is precisely why Rimac’s position on the future of the supercars deserves close examination. Few executives in the automotive industry have direct experience with both the pure-electric hypercar brand and century-old combustion icon, and that is what gives him his additional credibility. 

3. A Market Splitting in Two

According to Rimac, the current automotive market is undergoing a structural change. Everyday vehicles that are driven by practical needs and efficiency are increasingly dominated by low-cost EVs, and getting flooded by Chinese manufacturers in massive numbers. This process is reshaping the way that ordinary commuters think about their daily transport needs. As the batteries’ prices are decreasing, and the infrastructure is expanding, the case for the use of combustion in everyday cars weakens more and more in every possible segment. 

Two Diverging Markets:

• Mass-market EVs growing fast
• Chinese EVs flooding market
• Luxury segment behaves differently
• Wealthy buyers want tactile feel
• Emotional engagement over utility

However, in the upper segment of sports cars and hypercars, consumers are acting for completely different reasons. They do not seek efficient transportation or digital gizmos, but they want to touch and feel mechanics, the acoustic soul of the engine that is difficult to replicate with a purely electric platform. Efficiency and practicality are not their main concerns when buying, but only the emotional aspect of the experience becomes the key argument. 

4. The “Swiss Watch Phase” of Supercars

In order to demonstrate the dynamics of the market, Rimac draws the parallel between the high-end automobiles and the horology industry. According to him, the automotive market is currently entering the “Swiss watches phase,” when the everyday mass-market vehicles start replacing the traditional methods of transportation the same way that smartwatches replaced everyday timekeepers. This comparison was used deliberately since it fits perfectly to what is currently happening in the automotive world. Just like the watches, mass utility and high-end craftsmanship coexist without being a competitor of each other. 

The Watch Industry Parallel:

• Compares cars to Swiss watches
• Smartwatches replaced daily timekeeping
• Mechanical watches stay desirable
• Only 5% of watches made in Switzerland
• Yet earn 90% of profits

Rimac described this shift during an interview with CNBC saying that “for normal cars, the majority will be electric, and the upper segment will be combustion for a very long time, just like the watches.” He added that even though an Apple Watch is able to do a lot more than a mechanical one, “no one will pay $200,000 for it”. And that single quote captures Rimac’s entire strategic view: functional and emotional are two separate aspects. ]

5. Why Mechanical Artistry Beats Digital Screens

That analogy explains perfectly why the ultra-wealthy collectors tend to turn away from the high-tech electronic solutions to hand-made mechanical details. A digital screen or a battery pack, even the most sophisticated, cannot provide the visceral feeling of thousands of mechanical parts that work in perfect harmony. For the people who collect mechanical masterpieces, electric vehicle’s silent powertrains might seem completely anonymous. That particular missing emotional aspect is exactly what the combustion engines are still providing. 

The Emotional Case for Combustion:

• Mechanical parts feel visceral
• Software can’t replicate engine sound
• Emotional connection drives demand
• Worth the price for enthusiasts
• Digital sophistication isn’t enough

The sound of the engine that roars creates an emotional connection that cannot be created by any software algorithm. For the hypercar enthusiasts, that emotional drive is worth every single penny, and that is exactly why Rimac is so confident about the dominance of combustion in this market segment. Even the most advanced simulations and synthesized engine noises are unable to replace the mechanical authenticity, which is worth million dollars in Rimac’s opinion. 

6. Two Philosophies Under One Roof in Croatia

The reality of operating the electric pioneer brand and the combustion powerhouse under one management leads to a very unusual scene in the corporation headquarters. Bugatti was founded in 1909, exactly a century before the founding of Rimac, and the combination of these two created an unprecedented manufacturing facility in Croatia. Very few factories in the world accommodate such different philosophies of engineering at once. That combination became a distinguishing feature of the newly founded company. 

A Factory of Contrasts:

• Bugatti founded in 1909
• Rimac founded a century later
• Rimac Nevera built on-site
• World’s most powerful EV
• Massive Bugatti V16 built alongside

Inside of the Croatian facility, the Rimac Nevera, the world’s most powerful electric car is built right next to the facility that builds a massive naturally aspirated powerplant for the latest flagship Bugatti. Rimac finds the irony in this situation, jokingly saying: “It’s kind of ironic that I’m now making the world’s biggest combustion engine… life is strange sometimes.” 

7. Inside the Bugatti Tourbillon’s Hybrid V16

Writing So what is this all-new combustion wonder of the world? That would be the powertrain under the hood of the Bugatti Tourbillon. But instead of rushing into the all-electric era, Bugatti Rimac created a revolutionary hybrid hypercar with the help of a monstrous 8.3-litre naturally aspirated V16 engine. This decision was somewhat unexpected considering how much of an industry leader Rimac has been when it comes to electric hypercars and now by intertwining those two disciplines, Bugatti has produced an animal that still has the noise of a combustion engine but utilizes a healthy dose of electrification too.

Tourbillon Powertrain Specs:

• 8.3-liter naturally aspirated V16
• Engine alone: 1,000 horsepower
• Combined output: 1,800 horsepower
• Limited to 250 units
• Starting price: $4.5 million

As a solo force, the giant V16 will be delivering up to 1,000 horsepower, and with the electric motors working at their disposal, the Tourbillon will be outputting an unassailable figure of 1,800 horsepower overall, that’s as astounding, with a sticker price around $4.5 million each Bugatti will restrict the number of units to 250 units a feat that sells like hot cake.

8. The Business of Bespoke Customization

The most prominent aspect concerning the sale price and not necessarily the only investment made by buyers is the $4.5 million starting cost of the car. However modern hypercar collectors are willing to transform these machines into the expression of themselves by dedicating more cash to a personalization that will assure the cars to be special. The owner of a Tourbillon is willing to allocate between $600k and $700k in a hyper-customizable creation (from materials, colors to specific interior features) according to Rimac. Such specialization not only gratifies customer demands but it greatly supports the margins and incomes of Bugatti Rimac’s sale of their vehicles.

Personalization and One-Offs:

• Average add-on spend: $600K-$700K
• Custom paint and rare leathers
• Ferrari, Lamborghini do this too
• Bugatti unveiled the Destrier
• One-offs cost tens of millions

Custom paints for external chassis, elaborate stitch patterns: For companies such as Ferrari, Lamborghini, etc., very similar lucrative, personalized opportunities have emerged, too. At Monterey Car Week this year, Bugatti launched a unique one-off known as the Destrier-a more road-ready version of their track-focused Bolide with an ultra-low profile and extreme bodywork. Rimac said these clients are “looking for something that is really theirs… That is theirs and they are connected to… they are getting the story behind it.”

9. Bugatti’s Financial Performance and Ownership Changes

From a business point of view, this intense obsession on scarcity and high margin customization is already bearing some rather outstanding results financially for the Bugatti Rimac company. Last year the Bugatti brand achieved impressive profit (before interest, tax, depreciation, amortization – EBITDA) of 200 million euro (US$233 million) and while there’s still room for further margin improvements Bugatti will be chasing more per-car revenue through personalization, superior design and more advanced technology. Simultaneously the brand’s inherent value and scarcity should remain secured by maintaining strict low volume of production.

Financial and Corporate Highlights:

• EBITDA: 200 million euros
• Production capped at low 3 digits
• Porsche sold 45% stake in April
• Buyer led by HOF Capital
• Valuation “substantially higher” than $2B

“It’ll never be much more than low three digits,” Rimac said, stressing the need to remain “exceedingly exclusive.” In April, Porsche AG announced plans to sell its 45% stake in Bugatti Rimac to a consortium that also included HOF Capital. But Rimac maintained at the time that the company’s true valuation was “considerably higher” than the $2 billion reported value.

10. The Human Factor: Why Craftsmanship Still Wins

Balancing a genuine love of engineering with a keen sense of business, Rimac, in his own words, wants “to build the world’s best cars, the most exciting cars in the world,” all while running, percent for percent, the world’s most profitable car company. He believes that the soul of a hypercar has always come down to humanity, especially in an era when astonishing acceleration isn’t just limited to the $1 million dollar tier.

What Still Sets Hypercars Apart:

• $50,000 EVs now outperform old exotics
• Speed alone no longer justifies price
• Performance becomes “secondary”
• Focus shifts to human craftsmanship
• Porsche, Ferrari, others agree

Rimac remarked that the “most any one can be assured to be 100 times more faster than any performance car that’s come out in 10-odd years for $50,000 form China, so that means that just outright performance can’t be worth eight or nine figure dollar price-tags”. He insists performance is second to “a celebration of human skills” and the ‘big boys’, Porsche, Ferrari, Lamborghini, Bentley and BMW have all agreed their fundamental base would still be looking for the classic ICE.