Rolls Royce Invests Hundreds of Millions to Expand Factory, However, It Will Not Increase Car Production | Carscoops

      Bespoke demand is shaping Rolls-Royce's strategy rather than aiming to increase annual production targets.

      Instead of focusing on sales growth, Rolls-Royce prioritizes the expansion of its Bespoke division.

      In 2024, the British luxury brand sold 5,712 vehicles, roughly 1,700 more than in 2014.

      Not all luxury car manufacturers are pursuing higher sales figures. While brands like Ferrari and Lamborghini have been steadily increasing their annual sales by reaching new markets and wider audiences, Rolls-Royce is taking a different approach.

      Jon Colbeth, the new North American president for the brand, notes that chasing volume sales is akin to a "race to the bottom." Instead, the automaker is dedicated to growing its Bespoke division, where customers can create truly unique commissions.

      In 2024, Rolls-Royce's sales reached 5,712 units, which is the third-highest in its history, following 2022 and 2023. However, the number reflects only a slight increase from the 5,063 cars sold the previous year. This is notable even with the introduction of the all-electric Spectre and the Cullinan SUV, two models that could potentially see higher sales if production were increased.

      However, Rolls-Royce is not inclined to boost production. The brand is investing hundreds of millions to enhance its UK plant while having no plans to increase output.

      "We don’t want to be the car for everybody," Colbeth stated to ABC. "That’s not our focus. We’re investing $370 million in our [UK] plant expansion without increasing vehicle production. What other brand does that? Our aim is to expand bespoke capacity and make each commission even more special for our clients."

      Exclusivity as a Business Model

      Colbeth mentioned, "Our customers appreciate that we’re not pursuing volume. That’s not our business model. Once the company starts aiming for 10,000 cars, then it’s 15,000 cars. This leads to plant expansion and the necessity to keep it in motion, creating a race to the bottom."

      According to Colbeth, Rolls-Royce seeks to grow through its Bespoke offerings. He mentioned a significant trend toward individuality and personalization in recent years, partly due to the establishment of the Rolls-Royce Private Office.

      Clearly, if Rolls-Royce can encourage customers to invest more in their vehicles by selecting premium extras or custom features, they believe there's no necessity to increase production for higher profits. This approach is advantageous for clients who value exclusivity, as it should, in theory, help maintain low depreciation rates due to limited availability in the used car market.

      During the interview, the Rolls-Royce CEO also discussed the brand's design and technology philosophy. One aspect where Rolls-Royce draws the line is in branding—resisting the urge to overemphasize it. Unlike Mercedes-Maybach, which prominently features its logo on vehicles and accessories, Rolls-Royce adopts a more subtle branding approach.

      “Whether it’s our vehicles or our accessories, it’s more understated,” he explained. “If you examine our products, you won’t find the Rolls-Royce logo splashed everywhere.”

      No Giant Screens Here, Thanks

      Rolls-Royce is also steering clear of the industry trend of outfitting dashboards with large digital screens, opting instead for physical controls and tactile responses.

      “Our clients enjoy interacting with knobs and dials,” he told ABC News. “They appreciate when the vents accumulate humidity from the AC.” While the brand continues to enhance the underlying technology, it isn't pursuing a hyper-futuristic cabin experience. “Once you become too futuristic with trends involving big screens, it slightly detracts from the client experience. I doubt we will see that shift anytime soon,” he remarked to ABC.