In 2021, Bentley Motors achieved outstanding market performance in terms of both sales volume and operating profit. Worldwide, Bentley cars sold 14,659 units a year, up 31% year-on-year, and operating profit more than tripled from previous record highs. With a year-on-year growth rate of 40%, the Chinese market has become bentley motors' largest single market in the world.
In 2022, the 20th anniversary of the Bentley brand in China, in this context, how can the Bentley brand accelerate the implementation of the "Beyond100" business strategy? How will its evicted model production planning, sustainable transition investments, and carbon neutrality targets advance?
We recently had a dialogue with Bernd Pichler, Executive General Manager of Bentley Automotive Chinese mainland and Hong Kong and Macau at the Bentley Automotive New Car Tasting Session.
The uniqueness of the Chinese market
SCC : For bentley brands, how unique and important is China compared to other markets around the world?
Bissyle: I love China so much that I've been working and living in China for 17 years since I came here in 2005 and will continue to stay a few more years. Over the years, I have seen the Chinese market show an astonishing rate of development. Today, China is the world's largest automotive market and has great potential in the ultra-luxury automotive segment. In addition, the Chinese market continues to emerge more and more high-net-worth individuals, who are extremely fond of the comfort and luxurious texture that ultra-luxury cars give to their lives.
In 2021, Bentley Motors' global annual sales of 14,659 units increased by 31% year-on-year, a record high, of which 4,033 units were sold in the Chinese market and are still growing. I am very convinced of the importance and uniqueness of the Chinese market for ultra-luxury car brands, and even more so for the Bentley brand.
SCC : Will Bentley's future pure electric vehicles sold in the Chinese market take more into account the preferences of Chinese consumers and make some more local designs?
Persele: Bentley attaches great importance to the voices and demands of Chinese customers, for example, we held a customer research meeting in Shanghai last year to share newly designed Bentley concept models and collect real and valuable feedback from customers to ensure that every product Bentley creates can meet the highest expectations of customers. This year, we expect to hold another customer research meeting and will conduct similar customer exchange activities on a regular basis in the future to better understand the diverse travel needs of Chinese customers.
Recently, Bentley announced that it will launch a pure electric model every year for 5 years from 2025. We will ensure that every new car introduced to the Chinese market from Crewe's headquarters fully meets the needs of Chinese customers and is unique compared to other regional markets, as reflected in the 20th anniversary edition.
In addition, the Chinese market is changing rapidly, and compared to the dark cars that were highly sought after around 2005, models that are bright in appearance and interior are now everywhere. In the future, the Bentley brand will continue to strive to present ultra-luxury mobility vehicles that meet the needs of Chinese customers.
SCC : Is China's ultra-luxury car market different from the electrification trend in other regional markets around the world?
Pessie: Yes, it's different. The Chinese market is in a leading position in the electrification transformation of the automotive industry, and at the same time, compared with other regional markets, it also has an advantage in the market share of electrified models. China is also the world's largest automobile market, especially in terms of charging facilities have achieved rapid development, and has now formed a perfect charging service layout.
In addition, a large number of emerging car brands have risen rapidly in the Chinese market and began to pour into the high-end and ultra-luxury segments. At the same time, China's local electric vehicle brands have also entered foreign markets such as Europe and the United States. These changes further confirm the leading position of the Chinese market in the field of electrification.
Personally, I believe that we should not only focus on the scale of the market, but also focus on the progress of technology, and Bentley is fully prepared in this regard. With the introduction of plug-in hybrid models and future pure electric vehicles, we will occupy a favorable position in the electrification market.
Electrification of the Bentley brand
SCC : In the era of electrification, consumer demand for mobility vehicles is changing, will this have an impact on the Bentley brand?
Persele: Bentley is a century-old ultra-luxury car manufacturer that is now entering its second extraordinary centenary journey. With the release of the Beyond100 business strategy, we are reinventing our business model across the board to lead the way in ultra-luxury mobility that is sustainable.
Standing at the beginning of the next century, we must first observe the changes that have taken place in the entire automotive market, including the closely watched trends of electrification, digitalization, and driverless driving, and we need to be fully prepared to meet possible changes. Second, we are committed to achieving our carbon neutrality goals in all aspects, including products, R&D, manufacturing and distributors, which is an important part of the "Beyond100" business strategy.
At the product level, Bentley is accelerating its electrification transformation. For example, last year, the Bentayga Plug-in Hybrid and Bentley Flying Spur Plug-in Hybrid editions were launched, and more electrified models will be brought in the future. We expect to launch the first all-electric model in 2025 and electrify the entire range by 2030.
At the production and operation level, Bentley Motors Crewe headquarters plant is committed to becoming fully carbon neutral by 2030. For example, we have built the largest solar-powered parking lot in Europe in the factory to provide green energy for the vehicles in the factory.
Bentley is confident in the future and well positioned to be fully carbon neutral at the vehicle, production operations and other process levels. The Chinese government has also given strong support to carbon neutral operations and electrification, and Bentley will strictly comply with local laws and regulations to promote this work.
SCC : In the context of electrification, how should Bentley redefine ultra-luxury, and what are the priorities for future development?
Perseil: Always meeting the needs of our customers is a top priority for Bentley's future growth. We note that bentley's customers in China are becoming more youthful, with an average age of 39. They, like other slightly older but still energetic customers, are looking forward to ultra-luxury travel. We have fed this customer information back to Crewe's headquarters to demonstrate Bentley's focus on customer needs.
Bentley customers are keen to enjoy driving themselves, while there is a high demand for comfort in the rear. They hope to highlight their unique tastes and personalized expressions through their cars, and usually participate in the personalized customization process of vehicles after purchasing a car. In this regard, Bentley will continue to enhance customer service and experience.
Finally, I would like to reiterate that even in the era of electrification, every Bentley car will continue to blend performance with luxury without losing driving pleasure and ride comfort.
SCC : How can Bentley's future all-electric models not only reduce carbon emissions, but also ensure the driving experience and luxury of Bentley cars in the past? Which model will Bentley take the lead in entering the pure electric vehicle market?
Persele: The difficulty in the era of electrification lies in how to balance the performance of vehicles with the needs of electric vehicle configuration, such as supporting charging facilities. The Bentley brand is developing technologies designed to provide customers with a luxurious travel experience and perfect charging services.
At the same time, electric models have more space than traditional fuel vehicles, for example, fuel vehicles need enough space to accommodate the engine, while electric vehicles provide designers with more room to play to ensure top-notch ride comfort. In the future, we will also pursue a new balance through technological innovation.
The Bentley brand is committed to leading the way in ultra-luxury mobility that is sustainable. We expect to launch the first pure electric vehicle in 2025, which will have the driving experience and luxurious comfort of a fuel-free car, carefully built by Crewe craftsmen to meet customers' pursuit of luxury cars.
Regarding the many new cars that are coming soon, we will update you with the latest information of the brand in a timely manner.
Ultra luxury car brand
SCC : From the perspective of the global market and the Chinese market, what will be the development status and future trend of ultra-luxury brands?
Percile: Whether in the global market or in the Chinese market, Bentley is now the most popular brand in the ultra-luxury car market. Following the record sales performance in 2020, we sold 14,659 units worldwide annually in 2021, of which 4,033 units were sold in the Chinese market, an increase of 40% year-on-year. This shows the importance of the Chinese market to Bentley.
In addition, Bentley continues to perform extraordinary works, and the design, production and development of each Bentley car is hand-completed at the headquarters factory in Crewe, UK, ensuring superb ultra-luxury car standards to better meet customer needs.
SCC : How can ultra-luxury brands make breakthroughs in vehicle technology and process value?
Percile: In the case of the Bentley brand, in the case of plug-in hybrid models, we constantly emphasize the joy of driving, the surging performance, and the impact on the environment. Bentley customer research shows that more than 90% of customers drive their first-generation Bentayga plug-in hybrid version almost every day, mostly for urban road driving, of which more than half of the customers have a single mileage of no more than 48 kilometers, and can use electric mode throughout the process without starting the fuel engine.
In the future, with the launch of Bentley electric models, we will make more innovations and breakthroughs in the market, including digital experience, electrified mobility and future autonomous driving, etc., these market trends will bring major changes to the entire automotive industry, while creating a better and integrated service experience for customers. In any case, Bentley is well prepared.
SCC : What is your view on the growth of China's luxury car market? Will Bentley introduce new models in the future?
Percile: In 2021, China will become the world's largest single market for Bentley Motors with its outstanding market performance. The Bentley brand has always been in a leading position in China's ultra-luxury segment and is expected to continue to grow this year, but it is also necessary to consider the market competition. For example, we are seeing brands such as Mercedes-Benz launching new models in the ultra-luxury segment. Of course, as I said earlier, we will bring more exciting mobility to the market in the future, and we see that customers have a high demand for ultra-luxury cars, and Bentley is just right, so I have full confidence in this year.
Performance review and future outlook
SCC : There are many challenges in 2021, including the epidemic, chip shortages and transportation, etc. Recently, Volkswagen Group said that the group's overall sales have declined, and Bentley Motors has achieved excellent market performance in 2021.
Percile: Bentley's market success is mainly due to a number of aspects, first of all, the customer's favor and support for the brand, which drives Bentley to continue to bring an innovative product portfolio and provide personalized vehicles.
The global market has experienced a series of challenges in 2021, including the epidemic, chip shortages and transportation, and Bentley still delivered 4,033 vehicles in China, achieving a 40% year-on-year increase. This also reflects that the high-net-worth population in the Chinese market is steadily expanding. More importantly, the positive and effective epidemic prevention and control measures taken by the Chinese market have promoted the economic recovery and normal operation of the market. At Crewe's headquarters, Bentley has also implemented strict epidemic prevention measures and has achieved good feedback through unremitting efforts.
Regarding the chip shortage, Bentley has not been affected at this time, mainly because our production volume is smaller than other volume brands.
Of course, Bentley's outstanding performance is also inseparable from the efforts of dealers and crewe headquarters team, each Bentley car contains exquisite craftsmanship standards, which can be called a unique work of art.
SCC : What are your market performance estimates for this year? What are the new initiatives in terms of products and services?
Perseil: This year marks the 20th anniversary of the Bentley brand in China, we have launched 4 limited edition models for Chinese customers, which are very British and commemorative, and our dealers also predict that these new cars will be greatly favored by Chinese customers.
Secondly, Bentley expects to launch a blockbuster new car in the world at this year's Beijing International Auto Show. This car is an extraordinary new work that we have created based on the voices and needs of our customers, and it has received unanimous praise in the internal communication phase, and I am very much looking forward to the positive market performance of the new car."
Although there are still a series of uncertainties in the global situation, we are full of confidence in the future. After that, if there is more brand information, we will update you in a timely manner.
SCC : In addition to the existing Bentley Flying Spur, Bentayga and Continental GT series, will there be new models at Bentley in the future?
Pessillon: We can't give you any definitive information at this time, but what is certain is that we do have a number of exciting new models, including the launch of a plug-in hybrid version based on each car series, and the release of the first pure electric vehicle in 2025. As for the future of new car planning, we are also doing some internal tests this year, if there is more brand information will be shared with you in time.
SCC : In terms of new energy, what is the current proportion of Bentley's plug-in and hybrid model sales? Are there higher goals in the future?
Persey: In 2021, the Bentayga series is the world's most popular Bentley product. Among them, the Bentayga plug-in hybrid version accounts for one-fifth of the total sales of Bentayga models worldwide, and accounts for 33.6% of Bentayga models in the Chinese market. It can be seen that Bentley customers are actively embracing the trend of electrification. With the launch of the Bentley Flying Spur Plug-in Hybrid, we also achieved a good order performance.
SCC : We are concerned that Bentley has reached a new high in sales and operating profit in 2021, can we disclose the profitability of our distributors? And there will be some new layouts in the expansion of dealers?
Perseil: Dealers are an important part of our market success and need to work with us to ensure good profitability. Over the past year, we have been honored to see Bentley dealers in China achieve record levels of profitability, the highest among Bentley dealers worldwide. In addition, Bentley Motors China maintains a good relationship with regional dealers, and we also understand that they hope to continue to expand their layout, and we hope to work with dealers to provide customers with real car displays, quality services and Bentley brand culture.
In addition, a single Bentley dealer will not serve only one region or province, but the entire regional market. Taking the vast northwest region as an example, our dealers in Xi'an can radiate to other parts of the west. We carefully discussed the feasibility of opening a store with our dealer partners and continued to improve the layout of our dealers in China.
At present, the Bentley brand has set up 43 authorized dealers in Chinese mainland, Hong Kong and Macau, and is expected to reach 46 by the end of this year. We are maintaining a steady pace of expanding our dealers, on the one hand, enough to cover the needs of regional customers, but also will not cause market redundancy and unhealthy competition among dealers due to blind expansion.
At the operational level of our dealers as a whole, the three main factors we consider include: fully meeting the needs of our customers, ensuring the profitability of our dealers and the profitability of the Bentley brand itself.
SCC : Bentley Auto's global operating profit in 2021 is nearly 400 million, in 2020 only 20 million, the gap is still quite large, do you think Bentley is doing the right thing in 2021, especially in the Chinese market, is this related to Bentley's entry into the Audi Group? Or what strategic changes will the Audi Group bring to Bentley?
Perseil: I was mainly working on the financial side, so I was sensitive to data. In simple terms, you have seen a number of plug-in hybrid models launched by the Bentley brand recently, such as the Bentayga Plug-in Hybrid Version and the Bentley Flying Spur Plug-in Hybrid Version launched last year, as well as our work in the field of electrification, which requires a lot of investment. This may explain why our operating profit figures for 2020 are relatively low.
Thanks to the introduction of a number of new cars in the market, these investments have paid off after 2021.
Starting in 2020, the Bentley brand's sales growth in the market for the full year has been very fast and has set a sales record, which also explains why our operating profit in 2021 has increased significantly compared to the previous year – this is because our upfront investment has generated returns and benefits.
Becoming part of the Audi Group for the Bentley brand will have a certain impact on our profit growth in the long run, but the impact on the financial performance of the first two years is not so significant. Of course, we are very much looking forward to working with the Audi Group in a range of areas such as technology investment in the future, which is undoubtedly good news for the Bentley brand."
20th anniversary limited edition model. In 2022, the Bentley brand will celebrate its 20th anniversary in China by creating a number of extraordinary new works tailored to Chinese customers, as well as a series of anniversary celebrations and the widespread use of the 20th anniversary logo. Bentley Motors is also about to release four 20th anniversary editions this year, including "The Pall Mall", "The Guard", "The Carnaby" and "The Savile Row", based on the Bentley Flying Spur, Continental GT, Continental GT Convertible and Bentayga series. Each model has a unique design concept and British culture.
SCC : Can you share the scheduled and estimated delivery times for the four 20th Anniversary Edition models?
Perseil: We expect to deliver to our customers in the second half of this year.
In fact, we spent a long time designing a 20-year-old volume model, working closely with our UK colleagues in mulliner's department to ensure that the vehicle was unique and individual, as well as fit for the Chinese market. As the Bentley brand celebrates its 20th anniversary in China, we are proud to present this exclusive portfolio to our Chinese customers.
In our cooperation with Crewe colleagues, there are always interesting collisions and exchanges. When designing the model's exclusive custom logo, the designer readjusted the embroidery pattern on the back of the seat after listening to feedback from the Chinese market. We all enjoyed working together and discussing the design process.
SCC : About the four 20th anniversary models, how many are there in each one?
Percile: A total of 80 units, each model is limited to 20 units.
With this year's International Motor Show approaching, Bentley Motors will bring more news of new cars, so stay tuned!