Rolls-Royce to invest £300 million in expansion amid growing demand for bespoke luxury cars

LONDON: Rolls-Royce Motor Cars has announced a £300 million investment to expand its Goodwood factory in West Sussex to meet the increasing demand for bespoke modifications, following the carmaker’s third-highest annual sales in 2024, reported the Guardian.

The company said the investments will enhance manufacturing capabilities as it transitions from V12 petrol engines to electric vehicles, while also boosting its ability to cater to the unique requests of wealthy customers.

Demand for customised vehicles has surged, with ultra-wealthy clients willing to spend an average of over £500,000 on each car for features like gold bonnet sculptures, mother-of-pearl art, holographic paint, and LED starlit ceilings personalised for significant dates—one customer even requested the ceiling to reflect their dog’s birthday.

Rolls-Royce, which has been owned by BMW since 2003, sold 5,712 cars last year, marking a 5 percent decrease from the record sales of 6,032 in 2023. CEO Chris Brownridge, who took over in late 2023, noted that while demand in China has dipped slightly, the company remains robust. He hinted that there may be additional job opportunities as Rolls-Royce responds to customer requirements.

The investment will positively impact the British automotive sector, particularly after several factory closures in recent years, including those of a Ford engine plant in Bridgend, Wales, and a Honda factory in Swindon. Notably, Stellantis recently announced plans to shut down its Vauxhall van factory in Luton.

Unlike many automakers facing industry-wide pressures, Rolls-Royce’s success is not measured by production volumes as Brownridge emphasised that the company’s mission is to create masterpieces filled with bespoke options.

The value of luxurious extras for each vehicle increased by 10 percent in 2024 compared to the previous year. Bespoke models generally cost approximately a quarter more than standard versions, significantly enhancing profitability.

The best-selling model last year was the Cullinan, Rolls-Royce’s first SUV, followed by the Spectre, the company’s inaugural electric vehicle, and the Ghost, its least expensive offering at a starting price of around £280,000—seven times the average annual salary in the UK.

While luxury car manufacturers have generally been slow to adopt electric models, Brownridge noted that the Spectre has been exceptionally well-received.

He described the acceleration provided by electric motors as elevating the “waftability” for which Rolls-Royce is known. Rivals like Bentley have delayed the discontinuation of petrol cars until 2035 due to insufficient charging infrastructure and low consumer interest in electric vehicles. However, Rolls-Royce remains committed to phasing out its V12 petrol engines by 2030.

Brownridge remarked that the rationale for purchasing a typical electric vehicle differs significantly from the reasons for buying a luxury handcrafted motorcar like a Rolls-Royce. Yet, he asserted that the incorporation of a sophisticated electric powertrain creates a superior product. Although the company’s largest market is the US, which may see impending tariffs introduced by president-elect Donald Trump, Brownridge indicated that Rolls-Royce’s global demand minimizes dependence on any single market.