Customers blinging up luxury Rolls-Royces propels it to record sales and profits

Super-wealthy customers who have commissioned one-off bespoke luxury cars with an average price tag of half a million pounds have propelled Britain’s Rolls-Royce to record record sales and profitability as it accelerates into an exciting new era.

Rolls-Royce Motor Cars announces ‘a great British success story’ as it prepares to launch its first-ever all-electric production car – the new Specter grand tourer – and announced its best-ever 2022 sales of 6,021 cars; an increase of 8 percent or 435 cars from the previous record of 5,586 in 2021.

More custom personalization and luxury extras would have supported the brand’s “record profitability” by 2022, the company said.

Bosses added that they are “cautiously optimistic” that 2023 would prove to be a “strong year” as well.

Rolls-Royce CEO Torsten Müller-Ötvös said last year that record sales in 2021 at the height of the Covid pandemic had been accelerated by a “life can be short” mentality among the wealthy who decided to live for the time being and luxury purchases that cannot be postponed.

This year, Mr Müller-Ötvös says even higher profitability and record sales in around 50 countries worldwide in 2022 were boosted by the highest value of bespoke commissions in the marque’s 118-year history – an average of around £500,000 per car, which is double the price of some of its high-end models.

This included the second of a unique series of three ‘Boat Tail’ ultra-exclusive vehicle commissions – said to be an eye-watering £20 million each.

Pre-orders for the new electric Spectre, expected to cost more than £300,000 with first deliveries from this autumn, have also ‘exceeded ambitious expectations’, according to Rolls-Royce.

This is the second £20 million Rolls-Royce Boat Tail to be unveiled in 2022

Rolls-Royce last year unveiled the second in its Boat Tail trio of the most expensive new cars in the world – worth a combined £60 million.

Commissioned by a secretive – and unnamed – family who made their fortune in the pearl trade, the custom one-off £20 million coach-built luxury convertible grand tourer features a unique pearlescent exterior finish and mother-of-pearl inspired interior details. This includes a dashboard clock and plenty of fancy gadgets and fripperies.

At the back is a ‘hosting suite’ with a unique dining area, beverage cooler and food warmer, folding chairs, extendable tables and even a parasol all hidden under a pair of butterfly doors that elegantly open to reveal the delights stowed beneath.

Rolls-Royce declined to name the specific customer for the world’s collectively most expensive car, but said the new Boat Tail was created by its bespoke Coachbuild arm for him, “as a tribute to his father and family heritage.”

During a press conference attended by This is Money on Monday, Torsten Müller-Ötvös elaborated on the ratios of the sale.

He said America accounts for 35 percent of sales, China for 25 percent and Europe for 20 percent – with record sales in the UK and Germany last year.

The Middle East contributed 10 percent of sales and Asia-Pacific 10 percent.

By model, the Cullinan SUV accounted for half (50 percent) of all Rolls-Royces purchased by customers in 2022.

The next most requested model was the Ghost with 30 percent of orders, ahead of the Phantom limo with a 10 percent share.

The now-discontinued Dawn convertible and Wraith together accounted for 10 percent of all annual sales.

Half of all sales were darkly blinged ‘Black Badge’ model variants, which Rolls-Royce described as its ‘more rebellious alter ego’.

The CEO added that the new electric Specter will create a new “column” of the model as he looks forward to 2023.

He reaffirmed that record profits are being delivered to owners of German parent company BMW, saying: ‘We will definitely achieve a record result in Munich this year.

“Don’t worry, BMW in Munich is very happy with our performance.”

All investment in Rolls-Royce was from money it earned itself, he stressed as the company pursues the expansion of its boutique plant in Goodwood, including a new paint shop, to meet increased demand for bespoke cars.

But Rolls-Royce wouldn’t seek investment through an IPO (Initial Public Offering) of stock. He stressed, “There is no appetite for an IPO,” he said.

By model, the Cullinan SUV (left, front) accounted for half (50%) of all Rolls-Royces purchased by customers in 2022

Rolls-Royce, owned by German auto giant BMW, hailed the “unprecedented success” of 2022, noting: “This is the first time in the company’s 118-year history that sales have surpassed 6,000 in a single 12-year period. months.

This all pays off in profits as well.

Because while Rolls-Royce doesn’t publish detailed accounts separate from its German parent company BMW, industry experts who have dug deep into the numbers think the company is now neck and neck with Italy’s Ferrari as the most profitable car company in the world, with an estimated 50 percent return on investment.