Bentley delays EV-only game plan, sees 'uptick' in hybrids from luxury consumers

Pras Subramanian
·Senior Reporter
3 min read
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In this article:

Around a year ago, Bentley Motors CEO Adrian Hallmark said he had "never seen spending patterns" like this before for the automaker's luxury automobiles, adding that Bentley's 2030 all-EV game plan was full-steam ahead.

On Tuesday, Bentley reported 2023 sales were strong, but lower than 2022’s record performance — and that an EV shift in strategy is underway.

“Whether we deliver all the BEVs by 2030 or not, we still may have some hybrids that we wouldn’t have had post-2030,” Hallmark said at a media briefing last week attended by Yahoo Finance. Bentley had previously said it would be an EV-only brand by 2030; now Hallmark and Bentley see hybrids lasting for a few years longer.

As EV demand cools for most automakers, including luxury brands, hybrid demand has picked up. Bentley, owned by Volkswagen (VWAGY), has plug-in hybrid offerings with its Bentayga SUV and Flying Spur sedan.

FILE PHOTO: A worker cleans a Bentley car on display at the Salon Prive, a three day automobile event which showcases both new and classic luxury and sports vehicles, at the Royal Chelsea Hospital in London, Britain, April 20, 2023. REUTERS/Toby Melville
A worker cleans a Bentley car on display at the Salon Prive, a three-day automobile event that showcases both new and classic luxury and sports vehicles, at the Royal Chelsea Hospital in London, Britain, April 20, 2023. (Toby Melville/REUTERS) (Reuters / Reuters)

Hallmark said demand for its hybrids have seen an “uptick” and revealed that the company’s current order bank is 25% hybrids. Hallmark calls his offerings “performance hybrids.” For instance, the Flying Spur hybrid sedan offers 536 horsepower and 553 pound-feet of torque, along with 21 miles of all-electric range.

The pivot to keeping hybrids around longer and pushing back its all-EV portfolio means Bentley’s first EV will go on sale in 2026, as opposed to 2025. Bentley isn't alone in this shift. The current regulatory environment is softening for the entire industry.

“We’ve seen definitely a change with respect to regulators and government on rate of movement on full BEVs [battery electric vehicles],” Hallmark said.

2023 performance was 'uneven' but improving

The Bentley Flying Spur plug-in hybrid (credit: Bentley Motors)
The Bentley Flying Spur plug-in hybrid. (Bentley Motors) (Bentley Motors)

As for Bentley’s 2023 performance, the automaker had its second-best year ever in terms of sales, with 13,560 units sold, though that amount was down 11% compared to 2022. Revenue also dipped 13% to $3.213 billion for the year.

Hallmark noted that 2022 would be a tough year to repeat due to the pandemic-fueled boom the brand experienced, selling over 15,000 cars.

Other headwinds included the sales environment in China and Europe. Hallmark said while China suffered a poor first half and improving second half, Europe experienced the opposite, leading to “uneven performance,” the CEO said.

While the company's order bank is good, Hallmark said it wasn’t as good as before as the company experienced volatility in its order intake rate. Part of that could be due to leasing. Interest rates on Bentley leases tripled from 4% to 12% in the past year.

Bentley's EXP 100 GT Concept
The Bentley EXP 100 GT is a concept car introduced by Bentley for its 100th anniversary in 2019. The car is a fully electric two-door coupe, can hit 60 mph in 2.5 seconds, and has a top speed of 186 mph. (Bentley Motors) (Bentley Motors)

The company’s investment in EVs, though delayed, will still be a small drag on performance in the near term, Hallmark said.

“We still have a very strong business, but we’re still investing [in EVs] and that comes out of P&L,” Hallmark added.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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