Bespoke boom helps Rolls-Royce slide to record sales

Rolls-Royce Motor Cars hit a record year for sales in 2023, as the British luxury car company's super-rich customers spent big on bespoke, personalized features and extras.

The British luxury car maker delivered 6,032 cars to wealthy customers in more than 50 countries around the world last year – more than ever before in the brand's 119-year history.

And they all had an element of custom personalization, it said.

That included the launch of its first all-electric production car – the £330,000 zero-emission Specter – and an exclusive bespoke two-seater coach-built Droptail roadster worth up to £25 million called La Rose Noire. Only four uniquely different Droptails will ever be built.

Customers will often spend as much on personalization as they would on the basic car.

In what was hailed as 'another extraordinary year for Rolls-Royce', sales rose just above 2022's previous record of 6,021 vehicles – an increase of 12 cars.

This was “despite continued economic uncertainty and market volatility,” the report said.

The company, which has its headquarters and boutique factory in Goodwood, West Sussex, said the achievements would be a springboard to even bigger things in 2024 – the company's historic 120th anniversary year – but emphasized that the value of its cars lay in their exclusivity , and not to their great extent. sales volumes.

This also anticipates Rolls-Royce's planned all-electric future by the end of 2030.

Rolls-Royce reported 'a very successful year' with 'strong business performance' and bespoke commissions 'at record levels'.

It marks an exciting start to 2024 for the company, which is now celebrating 120 years since Rolls-Royce founders Charles Rolls and Henry Royce first met on May 4, 1904.

This achievement also represents a major vote of confidence in 'UK PLC' by the company, which is a wholly owned but independently managed subsidiary of German car giant BMW.

Although Rolls-Royce does not publish separate reports, auto industry experts say it works closely with Italian luxury supercar maker Ferrari as the most profitable car company in the world.

The company noted: 'The fourth quarter of the year saw the first deliveries of Rolls-Royce Spectre, laying the foundation for a bold electric future in which the brand plans to produce only fully electric cars by the end of 2030 .'

The record results are a testament to the work of outgoing CEO Torsten Müller-Ötvös, who retired in December after 14 years at the helm. This makes him the brand's longest-serving CEO in modern times, since Claude Johnson, the man known as 'the hyphen in Rolls-Royce' at the company's inception.

During his tenure, sales increased sixfold, delivering significant economic benefits to 'UK plc', Rolls-Royce said.

They also provide a strong springboard for new CEO Chris Brownridge, previously CEO of BMW UK, who vowed to 'maintain this momentum and drive this great company forward with confidence and conviction.'

Rolls-Royce said there was “sales growth in almost every market” it operates in – but not all – with deliveries reaching new record levels in the Middle East, Asia Pacific and Europe regions, where there were year-on-year growth was.

The US was the largest market for Rolls-Royce worldwide, followed by Greater China.

It said: 'Record sales were achieved in Europe, where Britain is the largest single market'

Record annual sales and year-on-year growth in the Asia-Pacific region were fueled by strong performance in Korea, where the company's “dynamic, vibrant economy is reflected in a rapidly growing luxury market.”

The Middle East maintained its position as 'the most important source of very extensive and technically demanding customized orders'.

Global sales showed a 'balanced picture' overall. The company emphasizes that it 'is not and never will be a volume-driven company'.

Last year's biggest seller was the luxury Cullinan 4X4, followed by the Ghost limousine. The flagship Phantom 'remains supreme as the brand's flagship product'.

Rolls-Royce, as planned, stopped production of the Wraith fastback (introduced in 2013) and Dawn convertible (from 2015). Wraith's departure also marked the company's last ever V12-powered coupe as it moves towards an all-electric future, starting with the first-ever Specter battery-powered production car launched late last year.

Rolls-Royce said: 'The first all-electric series Rolls-Royce in history has attracted enormous interest worldwide, especially among younger customers, and set a clear direction for travel.'

It noted: 'This demand has translated into orders extending through 2025, laying a strong foundation for the brand's bold all-electric future.'

Rolls-Royce explained how personalization increased profits: 'In 2023, bespoke commissions reached new record levels, both in value and quantity; The technical innovations required to deliver specific projects have resulted in a number of new patents being filed during the year.”

The most complex custom project was a scent delivery mechanism hidden in the headrests of a custom Phantom Syntopia, using technology originally developed for medical applications. Many custom paint finishes required entirely new materials, techniques and formulations.

To support the 'growing demand for increasingly detailed and extensive custom orders', the company is expanding its network of so-called 'private offices' where wealthy customers can personalize every aspect of their car, in collaboration with design and engineering specialists.

After the projects currently taking place in Dubai and Shanghai, the company is planning two more in 2024 in the Korean capital Seoul and in North America.

The company said: 'The impact of these new international Private Offices has already been significant, with a marked increase in the number and complexity of bespoke commissions.'

Possibilities “are limited only by the customer's imagination,” the report said.

Rolls-Royce currently employs 2,500 people and has created 180 new jobs by 2023. The company plans a new investment of £300 million to modernize and upgrade its manufacturing facilities to increase production of electric vehicles, as well as drive further custom orders and coachbuild activities.

A study carried out last year calculated that Rolls-Royce Motor Cars' contribution to the UK economy has exceeded £4 billion since production at Goodwood began in 2003, and now stands at more than £500 million per year.

Chris Brownridge, the new CEO of Rolls-Royce Motor Cars, said: '2023 was another extraordinary year for Rolls-Royce, with strong sales performance across all regions and across the product portfolio.

“It is especially encouraging to see the tremendous interest and demand for Spectre, which supports the decision to adopt a bold, 'all-electric' strategy for future model development and production.”

'The record level of Bespoke orders, both in terms of volume and value, also underlines our position within the luxury sector.'

Rolls-Royce Motor Cars is a completely separate, unrelated company from Rolls-Royce plc, the manufacturer of aircraft engines and propulsion systems.