Frankly Speaking: Saudi Arabia can be number one market for Rolls-Royce, says carmaker’s CEO Torsten Muller-Otvos

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Updated 27 December 2021
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Frankly Speaking: Saudi Arabia can be number one market for Rolls-Royce, says carmaker’s CEO Torsten Muller-Otvos

  • With more women and young people drawn to the brand, Saudi Arabia is becoming a top Middle East market for Rolls-Royce
  • CEO Torsten Muller-Otvos says Rolls-Royce is a “frontrunner” in the electric car transition among ultra-luxury brands

DUBAI: Big changes under way in Saudi Arabia could turn the Kingdom into the top market in the Middle East for Rolls-Royce cars, Torsten Muller-Otvos, the elite motor company’s chief executive, told Arab News.

“Saudi obviously is a big market. I see even more potential to come from Saudi in the years to come because the market is currently also opening up and is growing,” said Muller-Otvos, citing the royal decree of 2017 that granted Saudi women the right to drive and obtain driving licences for the first time.

“We see now the first female drivers in our cars in Saudi and for that reason I foresee we might in a couple of years talk about this being a massive, great market. It might even one day be the number one market in the entire region. Who knows? Potential-wise, it’s possible, but it depends on some other aspects,” he added.

Muller-Otvos delivered his forecast on Frankly Speaking, the series of video interviews with thought leaders in the Middle East and the world.




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In the interview, the boss of the British-designed but German-owned luxury car manufacturer set out Rolls-Royce’s road map to go completely electric, the effects of the COVID-19 pandemic on global and regional sales, and the effect of rising oil prices on elite car sales.

He also talked about some of the more extravagant custom features regional customers want on their cars.

The Rolls-Royce mark, founded in Britain 115 years ago but owned by BMW of Germany since 2003, is the ultimate status symbol in motoring, from California to Shanghai, but with a particular appeal among Arab buyers.

The transition currently under way in the global transportation market, with the surge in electric vehicle sales, has impacted Rolls-Royce and other petrol-engine manufacturers. Nevertheless, Muller-Otvos says Rolls-Royce is leading the way in electrification among the ultra-luxury market.




A vintage Rolls-Royce is shown during the exhibition in the King Abdullah II car museum in Amman, Jordan  Feb. 18, 2016. (Shutterstock)

“I would even say we are front-runners,” he said. “I mean, we are not comparing ourselves with what I would call the ‘normal’ automotive business. We are high in luxury. And you might also know that we are the very, very first ones in the ‘ultra-high luxury’ segment worldwide.”

The first electric Rolls-Royce, the Specter, will be available in the Middle East from 2023. “I can tell you Spectre will be a stunning, remarkable Rolls-Royce,” Muller-Otvos said. “We also took our time because, first of all, it needs to be a Rolls-Royce, so that means no compromises around luxury experiences for our clients worldwide, and then second comes, obviously, electric.”

The Spectre — which motoring pundits expect will cost around $350,000 for a starter-level vehicle — will play to Rolls-Royce’s traditional strengths. “It is also silent. We are not defining ourselves with loud engine noises or exhaust noises and for that reason I think it’s a perfect fit for the brand,” he said.




Rolls-Royce has announced that its first electric car would be made available by 2023. (Supplied)

But there were also commercial and regulatory imperatives for Rolls to get into the electric market. “We also see, worldwide, certain regulations kicking in that might mean in a couple of years you can’t enter city centers any longer without driving electric. And that, of course, would not be great for the brand.”

Elon Musk’s Tesla has so far been the headline grabber in the move to electric vehicles. Now, many traditional car companies in all the big markets are jumping on the “EV” bandwagon. However, Muller-Otvos is confident Rolls-Royce has traditional strengths in the hotly competitive market.

“Rolls-Royce never defined itself purely by the engine. That is not us. That is for other brands. We defined ourselves as the ultimate in luxury. It is about the finest materials, the best craftsmanship. It takes 1,000 hours at least to build one of these beautiful masterpieces,” he said.

Muller-Otvos also believes the move toward electric vehicles fits the shifting demographic of the Rolls-Royce clientele. “I think we will see a trend, step-by-step. Particularly the younger ones are very much attracted to electric propulsion. What we have also learned is that once you’re in an electric car, you are probably not getting back into a combustion car,” he said.

In the past, Rolls-Royce customers were overwhelmingly male, successful business executives, celebrities, or even royalty. That profile is now changing.

“When I started — and I’ve been in the role now for nearly 12 years — the average age of a Rolls-Royce customer was around 56. We are now down to 43. We have massively refurbished the brand, reinvented the brand, rejuvenated the brand. We now have young clients all over the world,” he said.

In the Middle East in particular, more women want to drive a Rolls-Royce. “When I joined, (the client base) was 1 percent female worldwide. Now we are at around 15 percent worldwide, and I think there are more to come, particularly here in the Middle East. You see quite a lot of female drivers behind the wheel. I think in the Middle East, we are talking probably 20 percent or so, and that’s quite a good share,” he said.

A big earner for Rolls-Royce has long been the trend towards customization — what the manufacturer calls the “bespoke proces” — where wealthy customers pay extra for unique features in their cars.

Sometimes, this results in lurid color schemes and outlandish accessories that would horrify Rolls-Royce traditionalists. But Muller-Otvos does not see himself or Rolls-Royce as an arbiter of individual taste.

“Let’s imagine, for a moment, a bright orange exterior and a yellow interior. It might look a little bit odd in central London, but down here in bright sunshine it looks stunning. I think you always need to keep that in mind. The last thing I want to do is judge — with my European taste — international clients. We are not the taste police in Rolls-Royce,” he said.

There was one request for a luxury accessory, however, that went aa bit too far — a request from a wealthy client for a chilled cigar compartment on the dashboard.

“One that was too crazy and was declined was for a humidor on the top panel, and that, unfortunately, wasn’t possible, technically, because we would have lost homologation (regulatory approval),” he said.




The Cullinan has been tested in the world’s toughest terrain, including Arabian deserts. (Photo courtesy of rolls-roycemotorcars.com)

Rolls-Royce has long held a special place in the Arab world, dating back to the time when Britain’s then-prime minister Sir Winston Churchill presented King Abdulaziz of Saudi Arabia with a custom Phantom model as a post-war gift.

The early stages of the COVID-19 pandemic saw a sharp drop in Rolls-Royce sales, as the Goodwood plant in the UK was forced to halt its production line for two months and deliveries were disrupted.

But that turned out to be the prelude to a rapid acceleration in sales in the Middle East and the wider world once the recovery got under way, matching a global phenomenon that saw all sales of luxury goods grow after the initial shock of lockdown. Muller-Otvos had an intriguing explanation for this.

“Many clients told me they have realized that it is possible that you could die suddenly, and many of them have even seen that up close. That made them think: You only live once, enjoy your life now, don’t postpone it to later days,” he said




The new Rolls Royce Ghost – re-engineered and relaunched in 2020 – is in high demand in the Middle East (Shutterstock)
 

The Cullinan, Rolls-Royce’s first foray into the luxury SUV market, has been in particularly high demand in the Gulf, as has the Black Badge Ghost.

As ever in the region, the fortunes of the oil market continue to determine the strength of the economy — and Rolls-Royce sales.

“The oil price is quite an indicator here for how healthy the economy is and we are very much dependent on how the economy goes,” Muller-Otvos said. “If the economy flies, we fly.”


Harvard students explore Jeddah’s history, culture

Updated 22 December 2024
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Harvard students explore Jeddah’s history, culture

  • This visit is part of a national initiative organized by Saudi students at Harvard University

Jeddah: The Jeddah Historic District Program of the Ministry of Culture recently hosted a delegation of students from Harvard University, the Saudi Press Agency reported.

The students were given a tour of the Jeddah Historic District, known as Al-Balad, highlighting its distinctive architectural, cultural and economic landmarks.

They also participated in activities commemorating World Arabic Language Day, which further enhanced their understanding of the area’s rich heritage.

This visit is part of a national initiative organized by Saudi students at Harvard University to showcase the Kingdom’s cultural and economic development to their peers, the SPA reported.

The Jeddah Historic District Program plays a crucial role in revitalizing the area through community engagement, economic development and sustainable urban planning.

By transforming historic Jeddah into a vibrant environment for living and working, the program aims to establish it as a global heritage and tourist destination.


Saudi project clears 570 Houthi mines in Yemen

Updated 22 December 2024
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Saudi project clears 570 Houthi mines in Yemen

Riyadh: Members of Saudi Arabia’s Project Masam removed 570 explosive devices from various regions of Yemen last week.

The total included two anti-personnel mines, 50 anti-tank mines, 508 unexploded ordnances and 10 explosive devices, according to a recent report.

Ousama Al-Gosaibi, the initiative’s managing director, said a total of 473,258 mines had been cleared since its inception in 2018.

The explosives were planted indiscriminately and posed a threat to civilians, including children, women and the elderly.

The demining operations took place in Marib, Aden, Jouf, Shabwa, Taiz, Hodeidah, Lahij, Sanaa, Al-Bayda, Al-Dhale and Saada.

The initiative trains local demining engineers and provides them with modern equipment. It also offers support to Yemenis injured by the devices.

Teams are tasked with clearing villages, roads and schools to facilitate safe movement for civilians and the delivery of humanitarian aid.

About 5 million people have been forced to flee their homes since the start of the conflict in Yemen, many of them displaced by the presence of land mines.


Riyadh forum explores reading’s role in growth

Updated 22 December 2024
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Riyadh forum explores reading’s role in growth

RIYADH: The Reading Forum, organized by the Libraries Commission, recently concluded at King Abdullah Financial District in Riyadh.

The forum featured dialogue sessions and workshops attracting reading and culture enthusiasts, the Saudi Press Agency reported on Sunday.

Discussions covered novels as artistic expressions that reflect culture and history, foster critical thinking, and the role of narration in promoting cross-cultural dialogue.

Participants highlighted reading and research as tools for personal growth, lifelong learning, and effective content creation.

They emphasized the importance of translation in cultural exchange and global copyright, the SPA reported.

Sessions explored instilling a love for reading in youth through collaboration between families, schools and society, as well as leadership in literary trends and the impact of genres on critical thinking.

The event set out to position reading as a foundation of progress, celebrating Saudi, Arab and global literary talent while fostering a culture of knowledge and intellectual growth.


Riyadh festival explores role of theater in shaping intellectual, artistic futures

Updated 22 December 2024
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Riyadh festival explores role of theater in shaping intellectual, artistic futures

RIYADH: The Riyadh Theater Festival is hosting a series of cultural discussions and theatrical performances distinguished by intellectual depth and artistic excellence.

Organized by the Theater and Performing Arts Commission, the festival is being held at Princess Nourah bint Abdulrahman University until Dec. 26.

A seminar on contemporary theater in the Arab world explored the intersection of creativity and sustainability, bringing together an elite group of theater thinkers and creators.

One of the festival’s participants, Kamal Al-Alawi from Tunisia, reviewed the evolution of theater, tracing its journey from the Greek era through the Middle Ages and the Renaissance to the time of Emile Zola, which marked a qualitative shift and revolution in impressionism.

Among the intellectuals and theater experts, Lina Abiad from Lebanon discussed ways to improve theatrical production and modernize it using contemporary methodologies.

The commission’s CEO, Sultan Al-Bazie, described the festival as a cornerstone for advancing theatrical movement in the Kingdom and increasing public awareness of the performing arts.

This year’s event features 20 performances, selected by a committee of experts, reflecting the diversity of theatrical arts in the Kingdom and its intellectual and developmental programs.

The festival underscores the commission’s commitment to supporting the performing arts and Saudi talent, aiming for a strong presence on regional and international stages. It will conclude with a presentation of awards to distinguished performers.


Jeddah Book Fair wraps up with 450,000 books sold

Updated 22 December 2024
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Jeddah Book Fair wraps up with 450,000 books sold

  • The event hosted workshops, seminars, panel discussions and book signings led by experts in literature, arts and sports

Jeddah: The Jeddah Book Fair concluded on Saturday, attracting thousands of visitors with local and international booksellers.

Held from Dec. 12-21 under the slogan “Jeddah Reads,” the fair featured more than 450 pavilions and showcased works from 1,000 publishing houses across 22 countries.

Mohammed Alwan, CEO of the Literature, Publishing and Translation Commission, said that the fair displayed nearly 400,000 titles, selling more than 450,000 books in various genres.

The event hosted workshops, seminars, panel discussions and book signings led by experts in literature, arts and sports.

A dedicated children’s section featured animation, educational books and advanced learning tools.

One pavilion highlighted the cultural significance of camels, using modern technology to explore their history, types, and related poetry.

Arabic manga publications targeting youth were also a key attraction, alongside interactive displays and models of famous characters, offering a blend of entertainment and education.