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.”


Saudi permanent representative presents credentials to UNESCO chief

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Saudi permanent representative presents credentials to UNESCO chief

  • Abdulelah Altokhais is seeking to strengthen Kingdom’s cooperation with UN agency
  • Paris talks focus on collaboration to promote coexistence among peoples and cultures

RIYADH: Abdulelah Altokhais, Saudi Arabia’s permanent representative to UNESCO, presented his credentials to Audrey Azoulay, the organization’s director-general, at its headquarters in Paris on Sunday.

The Kingdom’s mission to the UN-affiliated agency wrote on the X platform that Altokhias is “continuing Saudi Arabia’s efforts to strengthen joint cooperation with UNESCO and member states toward a better-shared future.”

During his meeting with Azoulay, Altokhais reviewed Saudi Arabia’s contributions to numerous UNESCO projects through its role in the organization’s Executive Council and membership of the World Heritage Committee.

He emphasized the need to enhance collaboration with UNESCO to promote peace and coexistence among peoples and cultures.

Altokhais studied philosophy at the University of Florida, and has worked in the cultural heritage, planning, and tourism fields, the Saudi Press Agency reported.


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More than 1,600 global exhibitors will take part in IPM Essen from Jan. 28-31.
Updated 26 January 2025
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Saudi Arabia to promote rural development at global trade fair

  • Program’s assistant secretary-general for media and communication said participation aims to attract foreign investment and strengthen international cooperation

RIYADH: Saudi Arabia will showcase its advances in agriculture and promote a range of local products at one of the world's leading horticulture trade fairs in Germany.

More than 1,600 global exhibitors will take part in IPM Essen from Jan. 28-31, with the Kingdom participating through its Sustainable Agricultural Rural Development Program.

The goal is to highlight the Kingdom’s efforts in advancing agriculture, supporting farmers, and promoting local rural products globally, the Saudi Press Agency reported.

The program will showcase its rural community development initiatives and support for small farmers, while emphasizing partnerships and collaboration with experts.

Majed Al-Buraikan, the program’s assistant secretary-general for media and communication, said that participation aims to attract foreign investment, strengthen international cooperation, and align with Vision 2030 to diversify the economy, improve food security, and enhance Saudi Arabia’s global agricultural standing.

The event offers an opportunity to explore innovations and solutions that could benefit small farmers in Saudi Arabia, Al-Buraikan added.

The Saudi pavilion will present its support programs, and distribute informational materials on subsidized sectors, including Saudi coffee, honey, and aromatic plants.

The fair will feature sustainable agricultural solutions, along with conferences and workshops addressing sector challenges and opportunities.


Saudi crown prince receives Italian PM in AlUla

Saudi Arabia’s Crown Prince Mohammed bin Salman receives Italian Prime Minister Giorgia Meloni at the winter camp in AlUla.
Updated 26 January 2025
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Saudi crown prince receives Italian PM in AlUla

  • Two leaders discussed relations between their countries and ways to support and enhance them in various fields

RIYADH: Saudi Arabia’s Crown Prince Mohammed bin Salman received Italian Prime Minister Giorgia Meloni at the winter camp in AlUla on Sunday.

The two leaders discussed relations between their countries and ways to support and enhance them in various fields, Saudi Press Agency reported. 

Saudi Arabia’s Crown Prince Mohammed bin Salman is pictured at the winter camp in AlUla on Sunday. (SPA)

They also discussed regional and international developments and issues of common interest during the meeting. 

Later on Sunday, Prince Mohammed and Meloni signed an agreement to establish a strategic partnership council between their governments.

Italian Prime Minister Giorgia Meloni is pictured at the winter camp in AlUla on Sunday. (SPA)

Meloni arrived in the Kingdom on Saturday. 


Islamic leaders call for unity against extremism at Bangkok conference

Updated 26 January 2025
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Islamic leaders call for unity against extremism at Bangkok conference

RIYADH: Participants in Bangkok on Sunday at the third Khair Ummah conference of the Association of Southeast Asian Nations stressed Islam’s foundation in worshipping Allah and following the Prophet Muhammad’s teachings, urging Muslims to promote moderation while contributing to progress.

In a final communique of the two-day event, which was organized by the Saudi Ministry of Islamic Affairs in Thailand, participants called on scholars to uphold Islam’s tolerant values and address misinterpretations of religious discourse.

They highlighted the importance of following the path of the Prophet’s companions, combating extremism, and rejecting groups that misused religion for personal gain, the Saudi Press Agency reported.

Participants stressed the need to leverage modern media and technology to promote Islam, counter misinformation through research, and develop programs instilling Islamic values and tolerance in young people.

Participants at the event, organized by the Saudi Ministry of Islamic Affairs in Thailand, called on scholars to uphold Islam’s tolerant values and address misinterpretations of religious discourse. (SPA)

The conference focused on research papers by various scholars and aimed to strengthen communication among Islamic leaders and institutions to advance civilization.

Saudi Arabia’s Islamic Minister Sheikh Abdullatif Al-Asheikh on Saturday emphasized that the conference aimed to strengthen Islamic unity and uphold Islamic identity through solidarity and adherence to the truth.

He said that scholars had a significant responsibility in light of global challenges and the intellectual, political, social, and security issues facing the world.

Al-Asheikh added: “This situation calls for a real response from scholars and researchers to clarify the right religious stance against sedition and to reinforce the core principles of the Islamic faith.”


Umrah guests from 18 African nations visit Islamic heritage sites in Madinah

Updated 26 January 2025
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Umrah guests from 18 African nations visit Islamic heritage sites in Madinah

RIYADH: The third group of the Custodian of the Two Holy Mosques Guests Program for Umrah and Visit toured several historical and religious sites in Madinah, the Saudi Press Agency reported.

As part of a cultural program by the Ministry of Islamic Affairs, the visit aimed to enrich the cultural experience of visitors and Umrah performers in the holy city.

The group, consisting of 250 pilgrims from 18 African countries, visited the Uhud site, Mount Al-Ramah, and the Uhud Martyrs’ Cemetery, learning about this historic turning point in Islam.

At Quba Mosque, the guests performed prayers and were briefed on its facilities and the ongoing expansion projects designed to increase capacity and enhance services for worshippers.

The guests also learned about the mosque’s historical and religious significance as the first mosque built after the Prophet Muhammad’s migration to Madinah.

Additionally, they toured the King Fahd Glorious Qur’an Printing Complex in Madinah, where they explored the technical and administrative departments and learned about the various stages of printing the Holy Qur’an and its translation into multiple languages.

The visit also showcased the complex’s efforts in recording Qur’anic recitations, interpreting its meanings, advancing Qur’anic sciences, and supporting Islamic research and studies.

The guests were introduced to the complex’s written and audio publications, which aim to spread Islamic teachings worldwide. At the end of the tour, representatives of the complex presented copies of the Holy Qur’an to the guests.

This third group is part of a larger initiative to host 1,000 male and female pilgrims from 66 countries this year. After their visit to Madinah, the guests will travel to Makkah to perform Umrah rituals.