Rolls-Royce confident in future growth potential

Rolls-Royce is confident about its growth potential in China, saying the country is a market of strategic importance to the British luxury marque.

In 2022, Rolls-Royce delivered a record 6,021 vehicles, up 8 percent year-on-year, with the Cullinan SUV the best-selling. On average, a Rolls-Royce fetches around $540,000.

The Americas were the marque's largest market in 2022, accounting for around 35 percent of its sales. China came second, with roughly a 25 percent share.

Rolls-Royce said it has seen significant success in top-tier Chinese cities like Beijing. But overall sales in China saw a one-digit slip in 2022.

CEO Torsten Mueller-Oetvoes said it is nothing to be worried about. "It's still the second-best ever year for Rolls-Royce Motor Cars in China," he said in an interview with China Daily.

"I definitely foresee that China will return to similar levels over the next few years like the Americas and might even overachieve that, because we definitely see growth potential in China."

Mueller-Oetvoes said the marque has a younger clientele in China than in other parts of the world and they are massively interested in tailor-making their vehicles, which he described as "artists creating what they drive on the road".

This is why the marque is planning to open a Private Office in China later this year, which is an invitation-only place for potential customers to sit with Rolls-Royce designers to create their own car.

It will be the second such facility outside of Britain, with the first one having opened in Dubai, Saudi Arabia, in 2022.

"The clients come into our Private Office and sit together with a designer who is handpicked from our side. That also shows our commitment to the Chinese market," said Mueller-Oetvoes.

Chinese customers have also shown great interest in the marque's first electric model, the Spectre, which was unveiled in 2022 and will be delivered in the fourth quarter this year.

"We are already receiving a number of orders from China," said Mueller-Oetvoes. "And I foresee even more to come once the car is on the ground in China and people see it."

Rolls-Royce is optimistic about 2023, saying its order book goes well into 2023.

Mueller-Oetvoes said if a customer places an order today, it will take at least eight to nine months for him or her to receive the car.

"It obviously depends on what you are commissioning, and it can also take up to 12 months. But rest assured we always treat the Chinese market as a top priority," he said.