Rolls-Royce SUV proved ‘recipe for success’, says CEO

The British luxury car maker increased sales by 25% worldwide and 29% in the region, following Cullinan launch

Torsten Muller-Otvos, chief executive of Rolls-Royce Motor Cars, with the Cullivan SUV. Photo courtesy Rolls-Royce Motor Cars

The first SUV from Rolls-Royce led the company to have its best ever year in 2019, with a 25 per cent increase in sales worldwide and Middle East and Africa sales up 29 per cent from 2018, the British luxury car maker said on Tuesday.

The Middle Eastern market is a very strong market for sports utilities and the Cullinan has proven the recipe for success.

Rolls-Royce Motor Cars, which is owned by the BMW Group, sold a record 5,152 cars last year, compared to 4,107 in the previous year. The Cullinan, unveiled in 2018, became the fastest-selling new model in Rolls-Royce’s 116-year history.

"It's a tremendous result … 25 per cent growth in one year is unbelievable and unseen," Torsten Muller-Otvos, chief executive of Rolls-Royce Motor Cars, said in a phone interview with The National.

While a global slowdown has affected the sales of mass-market car makers such as Volkswagen and Ford, the Cullinan and its niche of exclusivity have helped Rolls-Royce buck the trend.

North America accounted for about a third of global sales, followed by China with about 25 per cent and Europe. The Middle East represented approximately 10 per cent of sales volume, “a very stable, robust number”, Mr Muller-Otvos said.

The Cullinan — named after the largest diamond ever found — made up around 40 per cent of sales volume worldwide, with a “slightly higher” proportion in the Middle East, Mr Muller-Otvos said. Strong results in the Middle East and Africa region were spurred by sales of the Cullinan and the continued popularity of the Phantom.

“Particularly the Middle Eastern market is a very strong market for sports utilities and the Cullinan has proven the recipe for success,” Mr Muller-Otvos said.

The GCC has the strongest demand in the region with the biggest dealerships in Dubai and Abu Dhabi, said Cesar Habib, regional director of Rolls-Royce Motor Cars Middle East and Africa.

“Be it Abu Dhabi, be it Dubai, be it Kuwait, be it Saudi, they all delivered excellent results for us,” Mr Muller-Otvos said.

Shortly after the new SUV went on the market, a Dh2.2 million bespoke Cullinan in "twilight purple" arrived in Abu Dhabi in December 2018. The Black Badge Cullinan, rolled out in November 2019, sells for around Dh1.9 million in the UAE.

The Phantom, now in its eighth generation, is the second best-selling car in the region. “The Phantom has always been the pinnacle of our brand,” Mr Habib said. “In this region, people just want the best car … it’s a statement to drive up with a Phantom.”

The Phantom, now in its eighth generation, is the second best-selling car in the region. Photo courtesy Rolls-Royce Motor Cars

The Black Badge concept, which debuted in 2016 with Wraith and Ghost models, followed by the Dawn a year later and the Cullinan completing the range, has also helped attract younger clients, Mr Muller-Otvos said.

The average age of a Rolls-Royce buyer is now 43 years old, compared to 56 years old a decade ago, which is “quite a remarkable rejuvenation of the brand”, Mr Muller-Otvos said. There are also more women buyers, making up about 15 per cent.

Mr Muller-Otvos said demand for the Cullinan is expected to “stabilise” in 2020. While sales growth levels may not reach 25 per cent, he said he is “optimistic we should see a very good and strong year”.

Last year marked the end of Ghost production after 11 years, with its successor due for launch this summer and market availability from the fourth quarter.

"My role as chief executive is to balance demand from our customers with higher exclusivity," Mr Muller-Otvos told The National. "We will never offer lower priced models just for the sake of getting more volume. That's not our intention."