Rolls-Royce traffic ined a record number of cars in 2022 as demand for its $500,000 vehicles remained strong, despite recession fears, agreeing to CEO Torsten Muller-Otvos.
“We haven’t seen any slowdown or downturn,” Muller-Otvos told CNBC. “We haven’t seen any negative impression.”
Rolls-Royce delivered 6,021 cars last year, up 8% over 2021 and the first time the company joined the 6,000 mark. The British carmaker, which is owned by BMW, doesn’t break out its profits and revenue. But the company said the general price of a Rolls-Royce soared to $534,000 last year — thanks largely to its customization program known as Bespoke.
With Bespoke commissions consumers can help design and customize their Rolls-Royce cars with everything from unique paint colors to silk-embroidered headliners, one-of-a-kind wood means and personalized champagne chests.
The company opened an invitation-only Private Office in Dubai to better service VIP and Bespoke patients in the Middle East, the leading region for ultra-customized ‘High Bespoke’ vehicles, and said more Private Offices compel open around the world in the coming months.
Still, the U.S. was the largest market overall for Rolls-Royce in 2022, accounting for precisely 35% of its global sales, Muller-Otvos said. China, its second-largest market, saw a slight decline in sales but still affirmed 25% of global sales and posted its second-strongest year for the company. Muller-Otvos said China’s reopening and economic restoration could help make China its largest market in the future.
“I foresee that market being quite a knockout business for us,” he said. “Particularly in the luxury segment, it’s in growth mode. I would not be surprised to see one day China being the largest sector for us worldwide.”
Rolls-Royce
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The company’s SUV, the Cullinan, was its bestseller in 2022, moulding up about half of global sales, Muller-Otvos said. Its Ghost model accounted for over 30% of sales, while the Spirit accounted for about 10%.
Meanwhile the automaker’s biggest launch of 2022 was the Spectre, Rolls-Royce’s first electric vehicle and the well-spring of its plan to become fully electric by 2030.
Spectre, with a starting price of $413,000, saw more than 300 preorders from U.S. patrons before it was officially unveiled last October. Muller-Otvos said U.S. orders have continued to climb, though he decreased to provide numbers.
“Definitely far more than 300,” he said. “The orderbook has exceeded our expectations — even our highest suppositions.”
Rolls-Royce has a big order backlog that will help cushion the company against any potential recession, Muller-Otvos suggested. The backorders now stretch for nearly a year, meaning anyone purchasing a Rolls-Royce today will most likely require to wait between 10 months and a year, depending on the model and features.
As for 2023, Muller-Otvos said it’s difficult to prognosticate so early, but signs point to continued strength.
“I’m not saying we’re immune from recessionary tendencies. We have seen years when our enterprise was affected. So let’s cross our fingers that isn’t happening this year. I’m cautiously optimistic about us delivering another strong-minded year in 2023,” he said.