Bentley banks on EV
Bentley expects the Torcal SUV will help restore revenue and profit growth after its earnings dropped during investment in its first battery-electric vehicle.
The carmaker has reported first-half operating profit of €47 million, or about NZ$94.55m, down by 42 per cent year on year.
Its operating margin declined to 4.5 per cent in the first six months, continuing a slide from the record 20.9 per cent margin in 2022 when Bentley notched up €708m in operating profit.
A major factor behind the decline has been investment in the Torcal. The company has spent £350m, sone NZ$821.29, upgrading its factory in Crewe, England, to build the model.
Further spending on research and development, as well as supply-chain preparations, has cost “way more” than that amount, according to Frank Walliser, Bentley’s chief executive officer.
The Torcal will expand the marque’s line-up to four models in 2027, joining the Bentayga SUV, Continental GT coupe and convertible, and Flying Spur sedan, which have petrol and plug-in hybrid drivetrains.
The EV will become Bentley’s entry model, priced from €206,000 in Germany. The lower entry price and demand that typically accompanies a new model should help lift sales, revenue and profit, says Walliser.
Bentley’s global sales fell to 10,131 in 2025 from a record 15,174 in 2022. That’s been driven in part by weakening demand for the ageing Bentayga. Its sales dropped by 17 per cent last year to 3,628, allowing the updated Continental GT to become the brand’s top seller.
Walliser cautioned against viewing Bentley’s record profits in 2022 and 2023 as a benchmark for future performance. He adds: “There was a post-Covid boom and China was very strong. We had a chip shortage at the same time. Sometimes I have the impression people thought this was the new normal. It’s not. It was a peak. Now we are back to normal.”
Like most luxury and premium brands, Bentley’s sales in China have weakened as the country’s economic slowdown weighs on consumer spending.
Bentley’s earnings decline has been far steeper than that of VW Group sibling Lamborghini, which reported a first-half operating profit of €395m and an operating margin of 22.7 pern cent. Walliser notes sports cars typically generate higher margins than luxury vehicles.
Lamborghini’s earnings have been boosted by the recent launch of the Temerario supercar. It has less exposure to China where sports cars account for a relatively small share of demand.
The Torcal enters the market at a time when many luxury brands have had difficulty persuading buyers to switch to EVs. Bentley believes the SUV’s 600km range, familiar design and the popularity of the SUV segment will attract existing customers and new buyers.
