Bentley Motors has adjusted its timeline for transitioning to exclusively offering all-electric vehicles, citing shifts in market dynamics and a delay in the release of its first EV model.
CEO Adrian Hallmark emphasized the company’s ongoing commitment to achieving carbon neutrality and providing solely electric vehicles. However, he revealed that the timeline for this transition will be extended by a couple of years.
Bentley will continue to offer plug-in hybrids alongside battery electric vehicles (BEVs), extending beyond its previous target of achieving full electrification by 2030.
Hallmark explained during a media briefing, “Whether we deliver all the BEVs by 2031 or not, we still may have some hybrids that we wouldn’t have had post-2030. But not for 10 years, maybe just for a couple of years as we run them out.”
The decision by Bentley reflects a broader trend among automakers to adapt, delay, or revise ambitious EV plans as global adoption progresses at a slower pace than anticipated.
Bentley had planned to introduce its first EV next year, followed by an annual release of new all-electric models as part of a $3.4 billion investment plan by 2030.
However, the company now anticipates the launch of its first EV in 2026, leading to a corresponding delay in subsequent vehicle releases.
The setback in Bentley’s EV roadmap stemmed from software challenges and the complexity of developing the vehicle’s architecture to meet Bentley’s standards, according to Hallmark.
He emphasized that these technical hurdles were the primary reasons for the delay, rather than shifts in market conditions.
In response to the extended timeline, Bentley will boost its investment in plug-in hybrids by hundreds of millions of dollars in the coming years. This increased investment necessitates the continuation of hybrid offerings for a short period to ensure a satisfactory return on investment.
Currently, Bentley offers plug-in hybrid variants of its Bentayga SUV and Flying Spur sedan, both featuring combustion engines alongside electric components and range capabilities.
Bentley remains committed to phasing out the production of traditional internal combustion engines, including its renowned V-12 engines next month and non-hybrid V-8s by July or August.
The update on Bentley’s EV strategy coincided with the release of the company’s 2023 financial results.
Despite challenges such as shifting sales dynamics in China and macroeconomic uncertainties, Bentley delivered 13,560 vehicles globally in 2023, representing an 11% decrease from the previous year’s record.
Revenue amounted to $3.21 billion, down 13% year-on-year, with an operating profit of $644.7 million, reflecting a 17% decline.
Hallmark acknowledged 2023 as a noteworthy year for Bentley, albeit one characterized by significant performance fluctuations within the overall luxury market. He attributed these fluctuations to various challenges, including changing sales dynamics in China and macroeconomic factors, as well as higher interest rates affecting 30% of buyers who lease their vehicles.
Comparing performance to 2021, when Bentley sold more vehicles but with lower profitability, Hallmark highlighted the positive impact of customers opting for increased customization and add-ons to their vehicles on revenue and profits.
