Rolls-Royce sold a record variety of cars in 2022 as demand for its $500,000 vehicles remained strong, despite recession fears, in accordance with CEO Torsten Muller-Otvos.
“We’ve not seen any slowdown or downturn,” Muller-Otvos told CNBC. “We’ve not seen any negative impact.”
Rolls-Royce delivered 6,021 cars last yr, up 8% over 2021 and the primary time the corporate crossed the 6,000 mark. The British carmaker, which is owned by BMW, doesn’t break out its profits and revenue. But the corporate said the common price of a Rolls-Royce soared to $534,000 last yr — thanks largely to its customization program often called Bespoke.
With Bespoke commissions customers will help design and customize their Rolls-Royce cars with every little thing from unique paint colours to silk-embroidered headliners, one-of-a-kind wood materials and personalized champagne chests.
The corporate opened an invitation-only Private Office in Dubai to raised service VIP and Bespoke clients within the Middle East, the leading region for ultra-customized ‘High Bespoke’ vehicles, and said more Private Offices will open world wide in the approaching months.
Still, the U.S. was the most important market overall for Rolls-Royce in 2022, accounting for nearly 35% of its global sales, Muller-Otvos said. China, its second-largest market, saw a slight decline in sales but still claimed 25% of world sales and posted its second-strongest yr for the corporate. Muller-Otvos said China’s reopening and economic recovery could help make China its largest market in the long run.
“I foresee that market being quite a surprising business for us,” he said. “Particularly in the luxurious segment, it’s in growth mode. I might not be surprised to see in the future China being the most important region for us worldwide.”
Rolls-Royce
Steve Christo – Corbis | Corbis News | Getty Images
The corporate’s SUV, the Cullinan, was its bestseller in 2022, making up about half of world sales, Muller-Otvos said. Its Ghost model accounted for over 30% of sales, while the Phantom accounted for about 10%.
Meanwhile the automaker’s biggest launch of 2022 was the Spectre, Rolls-Royce’s first electric vehicle and the start of its plan to grow to be fully electric by 2030.
Spectre, with a starting price of $413,000, saw greater than 300 preorders from U.S. customers before it was officially unveiled last October. Muller-Otvos said U.S. orders have continued to climb, though he declined to supply numbers.
“Definitely way over 300,” he said. “The orderbook has exceeded our expectations — even our highest expectations.”
Rolls-Royce has a giant order backlog that can help cushion the corporate against any potential recession, Muller-Otvos said. The backorders now stretch for nearly a yr, meaning anyone purchasing a Rolls-Royce today will almost certainly need to wait between 10 months and a yr, depending on the model and features.
As for 2023, Muller-Otvos said it’s difficult to forecast so early, but signs point to continued strength.
“I’m not saying we’re immune from recessionary tendencies. We’ve seen years when our business was affected. So let’s cross our fingers that won’t happening this yr. I’m cautiously optimistic about us delivering one other strong yr in 2023,” he said.
