Rolls-Royce has abandoned its goal to sell only electric cars by the end of the decade.
The luxury car company launched its all-electric Spectre model in 2022, saying at the time that it would end production of its vehicles with V12 internal combustion engines by the end of 2030.
However, the chief executive, Chris Brownridge, who took the top job in 2023, said the company would continue to sell cars with the V12 engines as there was demand from clients.
“For every client who is unsure whether our Spectre is right for them, there will be one that says ‘I love it’,” he said. “We can respond to our client demand … we build what is ordered.”
Brownridge insisted that the company’s all-electric pledge under its previous chief executive, Torsten Müller-Ötvös, was “right at the time”.
His predecessor predicted in 2022 that Spectre would make up 20% of annual sales, with a goal of 70% of sales by 2028. Rolls-Royce did not disclose what percentage of its sales now come from its all-electric Spectre model.
“The legislation has changed,” Brownridge said. “That prediction was based on a different set of circumstances. We recognise some clients would rather have a V12 engine. The V12 is part of our history.”
It comes as global carmakers around the world grapple with the future of their electric car divisions. Bentley, another luxury carmaker founded in the UK and owned by a German parent, Volkswagen, pushed back its plans in 2024 to go fully electric to 2035 instead of 2030. This week it announced it would cut hundreds of jobs at its site in Crewe, Cheshire.
Meanwhile, a series of car manufacturers have booked multibillion-dollar write-downs on the value of their EV businesses. Honda told investors last week that it expects a hit of $15.7bn (£11.8bn) over the next few years as it restructured its electric car division. In February, Stellantis – the French car manufacturer that owns brands such as Fiat and Jeep – announced more than €22bn (£19bn) in charges, mainly linked to reversing course on its electric vehicle strategy.
Much of the luxury goods sector has also been shaken by recent geopolitical uncertainty, US trade tariffs and conflict in the Middle East.
“It’s difficult to predict what’s going to happen [in the Middle East],” Brownridge said. “We see a strong demand growth in the last five years from this region and we anticipate that to continue.
“For many of our clients who have vehicles that are expected to be delivered, we are working as best as we can with the logistics to facilitate that delivery.”
He added there was some evidence of very wealthy people moving outside the UK.
“If you zoom in, you see a mobility of ultra-high net worth individuals across Europe, particularly in the UK,” he said. “We’ve seen a number of our clients moving away from the UK to different locations, whether that be in Europe or other parts of the world.”
Rolls-Royce Motors, which is headquartered in Goodwood, West Sussex but is owned by the German car manufacturer BMW, makes about 5,600 cars a year. The company is expanding the Goodwood plant in a £300m project, in a move designed to strengthen its capacity to build more bespoke cars.
