Rolls-Royce Motor Cars is shifting strategic focus toward ultra-luxury customization services as enthusiasm for its electric Spectre model wanes among ultra-wealthy customers. The British luxury automaker, owned by BMW AG, reported significant changes in customer preferences that are reshaping its production and service approach.

Spectre Electric Vehicle Performance Decline

The Spectre, Rolls-Royce's first electric vehicle launched in late 2023 with a price tag of $420,000, experienced a dramatic sales decline in 2025. CEO Chris Brownridge confirmed the model's performance challenges during an interview at the company's Goodwood facility.

"We will launch more electric-powered Rolls-Royces, but they're Rolls-Royces first," Brownridge stated. "We see very strong demand for V12 — where the client demand continues for that engine, we will continue to produce Rolls-Royces as well."

Expansion of Bespoke Customization Services

Rolls-Royce is doubling the size of its Goodwood manufacturing site to accommodate surging demand for personalized luxury vehicles. The expansion includes a new paint shop designed to handle increasingly elaborate customer requests, from unique color specifications to intricate interior designs.

The company highlighted extraordinary customization requests, including a customer who specified a particular lime green color after spotting a frog during an Amazon hike. More than 20 vehicles delivered in the previous year exceeded £1 million in value, demonstrating the premium market's appetite for ultra-personalized luxury.

Financial Performance and Market Positioning

The focus on bespoke services has significantly impacted Rolls-Royce's financial performance, with average selling prices reaching new heights.

Brownridge emphasized that the company's production model, which only manufactures vehicles after customer orders, allows for flexible accommodation of both electric and V12 engine preferences on the same production line.

Market Challenges and Strategic Response

The luxury automaker faces broader market challenges, particularly in China, where luxury spending has declined. However, the United States market has strengthened its position as the company's dominant region. Eric Zayer from Bain & Company's European auto practice noted that electric drivetrains remain attractive to limousine buyers seeking smoothness and performance.

Rolls-Royce is expanding its global network of private offices for one-on-one client consultations, recognizing that wealthy customers increasingly value personalized service experiences. The company's manufacturing approach continues to emphasize hand-crafted elements, with workers using traditional techniques such as fishbone tools to perfect leather seat finishes.

Future Outlook

Despite the Spectre's sales decline, Brownridge expressed confidence in the model's long-term viability, comparing its trajectory to previous models like the Wraith and Dawn. The company maintains its capability to produce both electric and combustion engine vehicles based on market demand, positioning itself to adapt to evolving customer preferences in the ultra-luxury automotive segment.

British aero-engine manufacturer Rolls-Royce has unveiled plans for a major expansion in India, aiming to establish the country as its third home market alongside the UK, US, and Germany. The strategic move encompasses significant investments across defence, aerospace, and advanced engineering sectors.

Strategic Investment Plans

Sashi Mukundan, Executive Vice President of Rolls-Royce India, outlined the company's comprehensive expansion strategy during a recent interview. The investment plan covers multiple domains including jet engines, naval propulsion systems, land-based defence equipment, and advanced engineering capabilities.

Mukundan emphasized that while specific investment figures remain undisclosed, the commitment will be "big enough that people will notice it." The focus extends beyond monetary investment to developing the entire value chain and ecosystem across operational sectors.

AMCA Programme and Jet Engine Development

A key component of Rolls-Royce's India strategy involves developing next-generation aero engines for the Advanced Medium Combat Aircraft (AMCA) programme. The company positions itself as an ideal partner for India's indigenous fighter jet initiative, leveraging its global expertise in combat engine development.

The AMCA engine development programme offers several strategic advantages:

• Complete engine design work to be conducted in India
• Technology transfer with joint intellectual property ownership
• Strategic control through design IP ownership
• Systematic capability building for manufacturing

Mukundan highlighted Rolls-Royce's track record of building and certifying engines every 18 months, including both combat and commercial variants. The company currently powers the Eurofighter Typhoon with its EJ200 engine, featuring 90 kilonewton thrust capacity.

Naval Propulsion and Dual-Use Technology

Rolls-Royce's expansion strategy includes significant focus on electric propulsion capabilities for the Indian Navy. The company's unique ability to "marinize" aero engines presents opportunities for developing hybrid naval propulsion systems.

The dual-use approach allows India to leverage aero engine development for naval applications, creating a cost-effective supply chain that supports both sectors simultaneously.

Defence Manufacturing Partnerships

Rolls-Royce plans to formalize partnerships through two Memorandums of Understanding (MoUs) with Indian defence public sector undertakings. These agreements will establish manufacturing capabilities for land-based defence systems.

Global Combat Engine Expertise

Rolls-Royce brings substantial international experience to the Indian market. The company leads the Global Combat Aircraft Programme mandate, a collaborative initiative between the UK, Japan, and Italy to develop sixth-generation aircraft engines.

Additionally, Rolls-Royce participated in joint development of the F-136 engine for the fifth-generation F-35 aircraft, working alongside GE Aviation. This experience in thrust ranges matching India's requirements strengthens the company's position as a strategic partner.

Strategic Market Positioning

Mukundan expressed confidence in India's long-term potential, citing the government's focus on building indigenous capabilities across naval, land, and air domains. The executive emphasized India's unique position where "all the pieces genuinely fit together" for comprehensive defence manufacturing.

The expansion aligns with India's defence modernization priorities and growing sophistication in industrial ecosystems. Rolls-Royce views India not merely as a market opportunity but as a long-term strategic home supporting broader Global South initiatives.