Bentley Records A Profit Reduction But Revenue Per Car Increases Rapidly, How Come?

JAKARTA - British luxury car manufacturer Bentley, who is also Volkswagen Group's son, announced the lowest annual revenue decline in 2024 which follows the story of a decline as the COVID-19 pandemic hit in 2020.

This decline follows the total shipment of Volkswagen Group vehicles, which fell 2.3 percent to 9.03 million by 2024 due to declining sales in China. However, Bentley stressed its commitment to pursue "a value above volume," with operating revenues jumping 10 percent compared to 2023.

Cited from Reuters, March 19, Bentley reported an operating profit of 373 million euros (approximately IDR 6.7 trillion) for 2024, down 37 percent from 589 million euros in the previous year. Revenue also decreased by 10 percent, from 2.938 billion euros in 2023 to 2.648 billion euros.

Bentley CEO Frank-Steffen Walliser, at a press conference, stated that the company will no longer publish the number of cars sold. However, he stressed that revenue per Bentley car has hit record highs. This is due to high-end customers who continue to invest in custom features (bespoke) that significantly increase the price and profit margin for these luxury car manufacturers.

"This is a very clear indicator that we prioritize value above volume," Walliser said.

For example, Bentley executive highlighted the latest limited edition painted with a rose gold color. The car features up to 210 grams of 3D printed 18 carat rose gold at the main driver touch points in the car.

Walliser also highlighted that the luxury market in China, one of Bentley's main markets, is still quite challenging.

Meanwhile, Bentley's Chief Financial Officer, Jan-Henrik Lafrentz, stated that if US President Donald Trump imposes a 25 percent tariff on cars, Bentley will pay the fee to customers.

"We are assessing various scenarios on how to handle it, but in the end it will be forwarded to consumers," Lafrentz said.

Lafrentz also added that recent stock market turmoil and investor concerns about a possible US recession have yet to impact sales.

"We haven't seen it in the order book," he said.

It is also known that Bentley will launch its first electric car in 2026, with a new electric or hybrid model set to launch annually over the next decade until the company turns completely to electricity by 2035.