Rolls-Royce factory to expand for more bespoke cars

Luxury car manufacturer Rolls-Royce will expand its factory and global headquarters in Goodwood to meet the growing demand for customized models. The company will invest over £300 million to create more highly customized versions of its cars for super-rich clients. The 120-year-old British brand, fully controlled by German automaker BMW since 2003, officially opened its West Sussex factory in the same year. Rolls-Royce stated that this expansion ensures its future development in the UK.

Rolls-Royce sold 5,712 cars in 2024, its third-highest sales year in history. While this number may seem insignificant compared to mainstream manufacturers delivering millions of vehicles annually, Rolls-Royce operates in a highly rarefied market. The brand says it “does not disclose prices,” but it is understood that its cheapest model, the Wraith sedan, starts at around £250,000. Its Cullinan sports utility vehicle and electric Spectre models are believed to start at around £340,000. In comparison, the average UK house price last year was £297,000, according to Halifax.

The prices of customized models vary greatly. For the most elaborate creations, the final price can be several times the base price of the car. There are relatively few buyers who can afford such high prices. Some of these are celebrities who often don't mind flaunting their wealth. These include American stars Kim Kardashian and Nicki Minaj, and British rapper Stormzy, who was banned from driving for using his phone while driving his Wraith in London.

For some clients, simply owning a Rolls-Royce is not unique enough. In recent years, the company has increasingly focused on creating highly customized versions of its cars, which can be sold at even higher prices. Rolls-Royce describes this strategy as “creating value for customers through personalized products and experiences, and providing meaningful opportunities for personal expression.” In practice, this includes cars with holographic paint, incorporating unique artwork, or featuring intricate hand embroidery. One model designed to pay homage to the 1964 James Bond film "Goldfinger" featured parts made from 18-carat solid gold.

Rolls-Royce is not alone. Other high-end manufacturers such as Bentley, McLaren, and Ferrari also offer detailed customization services. However, manufacturing personalized custom cars, while profitable, is a labor-intensive process that requires time and space. Meanwhile, like other manufacturers, the company is preparing for a future where traditional cars are phased out and replaced by electric models. Rolls-Royce stated that the factory expansion will "create more space for the increasingly complex and high-value customization and coachbuilding projects sought by customers who define luxury as something very personal to them.”

The company added that the plan will also “prepare the manufacturing facility for the brand’s future transition to all-battery electric vehicles.” The carmaker has already secured planning permission for the expansion of the Goodwood factory, which was built in 2003 and originally housed 300 workers. Currently, the factory employs more than 2,500 people. “This is the most significant financial commitment we have made to the Goodwood factory since it opened,” said Rolls-Royce CEO Chris Brownridge. “It is a significant vote of confidence in the Rolls-Royce brand and secures our future in the UK,” he added.

As a luxury car manufacturer focused on export markets, Rolls-Royce is shielded from many of the challenges currently facing the European automotive industry. However, it has been affected by a decline in demand in the Chinese market, one of its most important markets. Earlier this year, Mr. Brownridge said that the growing demand for personalized cars was helping to offset this decline. The announcement comes weeks after another famous British brand caused controversy as it formulated its own plans for the future.

Jaguar—part of Jaguar Land Rover—will be relaunched as an all-electric brand, significantly elevating its market position as part of a major company restructuring. In December, it unveiled a strikingly styled concept car, along with a new logo and a controversial online advertisement, sparking a social media storm and generating numerous column inches.