Bentley profit falls as luxury car market falters
Bentley Motor Cars’ profit fell last year as a slowdown in the global economy impacted the luxury car market.
The Cheshire-based firm, a subsidiary of Volkswagen, reported a 17 per cent decrease in operating profit to €589m (£502.9m). Revenue also dipped around 13 per cent to €2.9bn (£2.4bn).
Some 13,560 of the company’s stately vehicles were delivered in 2023, 11 per cent lower than the prior year but still marking the third-highest total in its history.
Bentley’s profit soared into the stratosphere in 2022 due to a shift in consumer buying patterns and its wealthy clientele’s resilience to global economic challenges.
But it has since warned of “challenging” market conditions as even the richest customers feel the pinch from high interest rates and inflation.
Adrian Hallmark, Bentley Motors Chairman and CEO, said: “Last year marked a further positive performance in our transformation journey, despite an increasingly volatile geopolitical and business environment.
He added: “With uncertain market conditions set to continue during the year ahead, we will adapt our business model to ensure we remain in a balanced position, ready to adjust to increases or decreases in demand.”
Reassuringly for the marque, buyers have become increasingly keen on splashing out more cash to customise their cars.
Demand for personalisations rose 43 per cent to record levels in 2023, with three-quarters of customers exploring adding bespoke features to their vehicles. Such additions can include new wheels, bodykits with bespoke paint additions, or even a small spotlight which can project the owner’s name onto the ground at night.
Customers have also been increasingly attracted to higher revenue models such as Azure, S and Speed, the mix of which increased 40 per cent year-on-year, Bentley added.