Bentley delays all-EV plan past 2030 amid vehicle development issues

Bentley is delaying its plans to offer an exclusively all-electric car by the end of the decade due to changing market conditions and the delay of its first electric car.

Chief executive Adrian Hallmark said the storied British luxury carmaker remains committed to being carbon neutral and offering exclusively electric vehicles, but now plans to do so in a few years. Hallmark said Bentley will continue to offer plug-in hybrids and BEVs (battery electric vehicles), exceeding its previously set 2030 target.

“Whether or not we deliver all pure electric cars by 2031, we may still have some hybrid cars that we won’t have after 2030,” he told a media briefing. “But not in ten years, maybe just in a few years, Because we ran out.”

Bentley is among a growing number of automakers changing, delaying or canceling ambitious electric vehicle plans as global electric vehicle adoption grows slower than many expected.

Bentley’s first electric car is expected to be released next year, followed by a new all-electric model every year as part of a $3.4 billion investment plan by 2030. The company currently expects its first electric car to be released in 2026, pushing back the launch of subsequent vehicles as well.

Hallmark said delays in Bentley’s first all-electric car were caused by software issues and difficulties developing the vehicle’s architecture to Bentley standards. He said these challenges were the main driver behind delaying its electric vehicle plans, rather than changing market conditions.

Hallmark said Bentley will increase its investment in plug-in hybrids by hundreds of millions of dollars over the next few years. He said given the increased investment, the company would need “extended operating hours” to achieve the expected return on investment.

Bentley currently offers a plug-in hybrid version of its Bentayga SUV for $203,200 and its Flying Spur sedan for $221,200. Both include engines as well as EV components and electric range.

Bentley still plans to end production of traditional internal combustion engines, including its famous V-12, next month and non-hybrid V-8 engines in July or August.

Update on Bentley’s electric car plans comes with VolkswagenHoldings’ 2023 financial results.

These results included global deliveries of 13,560 vehicles, down 11% from 2022’s record of nearly 15,200 vehicles. Revenue was US$3.21 billion, down 13% from the previous year, and operating profit was US$644.7 million, down 17%.

Hallmark called 2023 a great year for the company, but also a “year of significant performance volatility across the luxury market,” impacting the business. He cited a number of challenges, including changes in sales dynamics in China, macroeconomic concerns and rising interest rates for 30% of rental car buyers.

Bentley’s 2023 results were significantly better than 2021, when Bentley sales increased but profits fell. Hallmark said the growth in revenue and profits compared with two years ago is a direct result of customers choosing to have more customizations and add-ons on their vehicles.