Record Rolls-Royce Sales Expected in 2022, Wealthy Spending Unabated

Rolls-Royce sold a record number of cars in 2022, with demand for its $500,000 vehicles remaining strong despite fears of recession, according to CEO Torsten Muller-Otvos.

Muller-Otvos told CNBC that they have not seen any slowdown or downturn and that they have not seen any negative impact.

Rolls-Royce delivered 6,021 cars last year, up 8% over the previous year. This is the first time the company has crossed the 6,000 mark. The average price of a Rolls Royce soared to $534,000 last year, thanks largely to the company's customization program known as Bespoke.

Bespoke commissions allow customers to design and customize their Rolls-Royce cars with everything from unique paint colors to silk-embroidered headliners, one-of-a-kind wood materials and personalized champagne chests. This makes each Rolls-Royce car truly unique and tailored to the customer's individual taste.

The company has opened an invitation-only Private Office in Dubai in order to better service VIP and Bespoke clients in the Middle East. The Middle East is the leading region for ultra-customized 'High Bespoke' vehicles, and the company plans to open more Private Offices around the world in the coming months.

Muller-Otvos said that, despite a slight decline in sales, China was still the second-largest market for Rolls-Royce in 2022, accounting for 25% of global sales. He added that China’s economic recovery could make it the largest market for the company in the future.

He said that the market looks like it will be very successful for them and that China has the potential to be their largest region worldwide.

Muller-Otvos said that the company's SUV, the Cullinan, was its best seller in 2022, making up about half of global sales. The Ghost model accounted for over 30% of sales, while the Phantom accounted for about 10%.I

n the meantime, the automaker's biggest launch for 2022 is the Spectre, Rolls-Royce's first electric vehicle. This is the beginning of the company's plan to become fully electric by 2030.

The Spectre, with a starting price of $413,000, saw more than 300 pre-orders from U.S. customers before it was officially unveiled last October. Muller-Otvos said that U.S. orders have continued to climb since then, though he declined to provide specific numbers.

He said that the orderbook has definitely exceeded more than 300 and even their highest expectations.

«Rolls-Royce has a large order backlog that will help protect the company against any potential recession,» Muller-Otvos said.

The backorders now extend for nearly a year, meaning anyone purchasing a Rolls-Royce today will most likely have to wait between 10 months and a year, depending on the model and features.

It is difficult to forecast what will happen in 2023, but early signs point to continued strength. This is according to Muller-Otvos.

"While we're not immune from recessionary tendencies, we've seen years where our business was affected. So let's hope that isn't the case this year. I'm cautiously optimistic about us delivering another strong year in 2023," he said.