Slowing luxury demand in China drives down Bentley sales

Despite the fall in sales, it was still Bentley’s third-best year for sales on record

Bentley has suffered a slowdown in demand for luxury cars as soaring interest rates hit the spending power of ultra-wealthy drivers.
The company, which makes cars that sell for hundreds of thousands of pounds, has blamed “challenging market conditions” after sales in the UK and China both dropped by 18pc last year.
Bentley said it delivered 13,560 cars in 2023 compared with 15,174, as rising interest rates and economic turbulence in crucial markets for luxury goods caused shoppers across the world to cut back on expensive purchases.
China is a key market for Bentley, accounting for almost a quarter of its global sales. The UK accounts for a further 9pc.
In the Americas, its biggest market which accounts for 28pc of its sales, it was hit by a 9pc decline in car deliveries, while European sales dropped 15pc. The only global regions where Bentley’s sales increased were the Middle East, India and Africa, and Asia Pacific.
Porsche’s finance chief Lutz Metschke said last year that high borrowing costs and rising prices were beginning to impact wealthy consumers.
Adrian Hallmark, chief executive of Bentley, said: “The luxury market was not immune from the challenging market conditions seen around the world in the second half of 2023.”
Bentley was founded in 1919 by the British engineer Walter Owen Bentley who started the company making aluminium pistons during the First World War. The first Bentley cars rolled off production lines in 1922 and became known for winning five of the 24 Hours of Le Mans races between 1924 and 1930.
The company is now owned by German manufacturer Volkswagen and its cars have been supplied to the Royal Household. 
Despite the fall in sales, it was still Bentley’s third-best year for sales on record. Mr Hallmark said that while the car maker sold fewer cars, it benefited from a boom in demand for top-end bespoke vehicles.
Bentley’s personalised services have included requests from customers for a family’s coat of arms on the headrest and one-off custom paint colours.
Sales of Bentley’s high end bespoke models rose by 43pc in 2023, with a marginal rise even in the Chinese market.
The average cost of a Bentley is around €225,000 (£192,000), with custom models costing tens of thousands of pounds more. 
It recently manufactured a limited run of 18 Batur cars which cost £2m each, all of which were sold.
Bentley has previously said it plans to focus on selling more expensive cars which will generate higher returns.