Home Money Rise of lucrative bespoke luxury cars sparks £300m expansion at Rolls-Royce in third best year for sales

Rise of lucrative bespoke luxury cars sparks £300m expansion at Rolls-Royce in third best year for sales

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Rolls-Royce will invest £300m to create additional space at its Goodwood factory for

A record boom in super-rich customers buying highly customized Rolls-Royce limousines has prompted a £300m expansion of its boutique factory in Goodwood to boost production of electric and bespoke vehicles.

It comes as the company announced that while car sales last year were the third highest in its history, a record proportion of the total were built to order as bespoke models which commanded a lucrative premium well above their base price. , including one specially commissioned. of the Arcadia limousine which costs £25 million and is believed to be the most expensive car in the world.

Rolls-Royce said: “These commissions were inspired by a diverse spectrum of themes, ranging from spectacular natural phenomena and the brand’s heritage to cherished personal milestones and classic films.”

A total of 5,712 Rolls-Royce cars were delivered to customers in 2024, the third highest annual sales figure on record and a drop of 320 or 5.3 percent from last year’s record 6,032 cars to wealthy customers.

That, in turn, was just ahead of the previous 2022 record of 6,021 vehicles.

With more all-electric models set to join Specter in Rolls-Royce’s line-up by 2030, the company said current global sales present “a balanced picture”, led by North America and Europe, but with a decline in China.

However, bosses revealed a review of the company’s operations that had given it more leeway and flexibility in its timeline and path towards becoming an all-electric luxury car company.

Rolls-Royce will invest £300m to create additional space at its Goodwood factory for “increasingly complex, high-value coachbuilding projects” that will hit record commission levels by 2024.

Until now, Rolls-Royce has held firmly to the mantra that it will be “all-electric by the end of 2030.”

But in a subtle but significant change, chief executive Chris Brownridge told This is Money that the current position was that it would be “fully capable of being fully electric by 2030”.

He went on to say that Rolls-Royce will continue to consider meeting customer demand for traditional petrol cars beyond 2030: “We still see demand for our V12 cars,” he told us.

Brownridge denied that this represented a “softening” of its intention and ambition on electric vehicles, but rather a prudent and pragmatic response to the market and its wealthy customers, saying: “We have our eyes and ears open.”

Feedback on the Specter EV had been “brilliant” and its wealthy customers faced no problems with a shortage of public charging points, he said, although he was aware of broader anti-EV sentiment that has hit the motor industry in recent years. two years and that was not the case for Rolls-Royce or its clients.

The company, based in West Sussex, stressed that its focus was on profitability, not just numbers sold, noting: “The value of personalized content increased by 10 per cent on average per car year on year, reaching the highest level in the company’s history. .’

The firm has previously said that personalized extras can double the final price of a car.

Rolls-Royce said its 2024 performance was “in line with the brand’s forecasts and expectations” given the introduction of a record four new models in 2024: the Cullinan Series II SUV and the Ghost Series II limousine, along with their respective sportier Black Badge variants.

Although it declines to discuss the matter officially, financial experts say Rolls-Royce is neck and neck with Italy’s Ferrari as the world’s most profitable car company.

A total of 5,712 Rolls-Royce cars were delivered to customers in 2024, the third highest annual sales figure ever recorded.

A total of 5,712 Rolls-Royce cars were delivered to customers in 2024, the third highest annual sales figure ever recorded.

In CEO Chris Brownridge's first year at the helm of Rolls-Royce, the boutique automaker has seen a boom in custom limousines and premium electric vehicles.

In CEO Chris Brownridge’s first year at the helm of Rolls-Royce, the boutique automaker has seen a boom in custom limousines and premium electric vehicles.

The move marks the first full year at the helm for Brownridge, former head of BMW UK and the first Briton to lead Rolls-Royce in 14 years following the retirement of his German predecessor, Torsten Mueller-Otvos.

The company said that after “a historic year for Bespoke”, its £300m investment will create additional space for “the increasingly complex, high-value coachbuilding projects sought by customers who define luxury as something with true meaning.” staff for them.

It will also prepare the boutique factory for the brand’s transition “towards an all-electric, battery-powered vehicle future” with a second electric vehicle launching this year as part of its previously stated aspiration to be all-electric by 2030.

It is “the largest capital injection since the plant opened on January 1, 2003,” Rolls-Royce said.

At that time, the Goodwood plant employed around 300 people and only produced one car a day.

Currently, more than 2,500 people produce up to 28 cars a day. A further 7,500 are employed by UK suppliers.

Overall, in what Rolls-Royce called a “globally balanced” sales year, the best-selling models in 2024 were, once again, the Cullinan SUV, followed by the latest all-electric Specter fastback and then the Ghost limousine.

The flagship Phantom limousine “retained its status as the most exclusive and exclusive Rolls-Royce” before celebrating its centenary in 2025.

A record proportion of Rolls-Royce sales were bespoke models. This includes the stunning Arcadia limousine, which costs £25 million and is believed to be the most expensive car in the world.

A record proportion of Rolls-Royce sales were bespoke models. This includes the stunning Arcadia limousine, which costs £25 million and is believed to be the most expensive car in the world.

The Cullinan SUV was once again Rolls-Royce's best-selling model in 2024. The brand's first elevated model has been a great success among wealthy people.

The Cullinan SUV was once again Rolls-Royce’s best-selling model in 2024. The brand’s first elevated model has been a great success among wealthy people.

The all-electric Specter was Rolls-Royce's second best-selling car in 2024, the British brand said.

The all-electric Specter was Rolls-Royce’s second best-selling car in 2024, the British brand said.

The United States remains Rolls-Royce’s largest market, followed by China

North America remained the largest sales region for Rolls-Royce Motor Cars, accounting for around a third of total sales.

China was the second largest market, but sales fell from more than a quarter to more than a fifth of the total due to the country’s “economic headwinds.” But it enjoyed “sustained demand for Bespoke”, which “reflected a continued rise in younger clientele”.

Record sales were recorded in Europe (accounting for a fifth of sales), the Middle East and Asia-Pacific (both with more than 1 in 10 sales).

Elsewhere, the UAE, Germany and Japan also achieved record sales and enjoyed a “significant increase in demand for Bespoke features” and “some of the most ambitious Bespoke commissions”.

Smaller but rapidly growing markets included Malaysia, Thailand and the Netherlands.

Another electric Rolls-Royce expected in 2025

As it prepares to add more electric vehicle models to its lineup, the first all-electric Specter was the company’s best-selling model in Europe and second-biggest seller overall.

Rolls-Royce said: “Customers have confirmed that the Specter’s electric drivetrain is a perfect fit for Rolls-Royce, amplifying the attributes for which the brand is best recognised: quietness, buoyancy and the unique ‘magic carpet ride’ experience.” .

“The arrival of Specter in markets around the world has confirmed the successful launch of this innovative automobile.”

He added: “Rolls-Royce Motor Cars looks forward with confidence to the year 2025, when the brand will introduce its next electric car.”

CEO Brownridge said of the factory’s performance, investment and expansion: “It is an important vote of confidence in the Rolls-Royce brand, securing the foundations of our future here in the UK.”

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