A Desperate Move for Survival?

The global luxury sector is experiencing its most significant downturn since the dawn of the 21st century. Simultaneously, demand has weakened across core categories such as handbags, footwear, high-end watches, fragrances, and fine wines. Leading luxury brands like Louis Vuitton, Dior, Fendi, Bulgari, and Hermès have all felt the impact of this market chill without exception.

This cooling trend has also extended to the automotive industry. Faced with shrinking high-end consumption, ultra-luxury cars have been hit harder than traditional luxury goods such as leather goods and watches. Since the beginning of this year, Bentley has initiated layoffs to cut costs, Porsche has advanced strategic retrenchment and divested its Bugatti business, Lamborghini has postponed its pure electric vehicle project, and Aston Martin has conducted two rounds of layoffs within a year. Behind these moves are financial statements flashing red alerts and shrinking market orders. Once at the pinnacle of the pyramid with strong profitability, ultra-luxury car brands now find themselves plunged into an industry winter together.

The wave of electrification represents a structural transformation that brings both opportunities and challenges for established luxury brands. Traditional luxury brands, which once relied on the roar of internal combustion engines and classic design narratives to establish their market presence, are now facing a dual assault from electrification pressures and shrinking orders. Their core advantage systems from the fossil fuel era are collapsing comprehensively, compelling them to take the initiative to break through and find intelligent electric solutions that align with their high-end positioning.

However, behind the crisis lies a new window of opportunity for established ultra-luxury brands to redefine luxury. Rather than simply following the routes of new energy players, they are concentrating more resources on brand experience, design, and high-end services while upgrading their products.

The recent rumors of a potential partnership between Maserati and Huawei are also seen as a differentiated path for traditional luxury brands to break through in electrification. Recently, Italy's Milano Finanza reported that Stellantis Group is seeking a way out for Maserati, which is mired in difficulties, with Huawei and JAC Motors as key pieces in the turnaround plan. The two sides plan to apply Huawei's Harmony Intelligent Automotive Solution platform to Maserati models, aiming to launch the first jointly developed mass-production vehicle by the end of 2027.

In addition, Bentley and Rolls-Royce have found new ways to tackle the challenges. Following the release of its contemporary pinnacle new work, the Bentayga Extended Range, Bentley will unveil its first pure electric vehicle, the Tokal, on September 23. Meanwhile, Rolls-Royce has opened a new showroom in Beijing with a fresh visual identity standard, incorporating Chinese-style tea table designs to create a luxurious experience tailored to Chinese customers and consistent with the brand's tone.

In this industry winter, ultra-luxury brands seem to be vying once again to define what luxury means.

Is Change on the Horizon?

"The era of electrification is undoubtedly coming. However, the pace and path of electrification vary across different market segments. The ultra-luxury car segment remains cautious about electrification, and its progress is indeed slower than in other segments," Andy Goss, Executive General Manager of Bentley Motors for China, Hong Kong, and Macau, admitted in an interview with China Auto News. He revealed that Bentley did not introduce pure electric models in previous years because the technology was not yet mature. For example, the iconic upright front grille, while not beneficial for aerodynamics, is crucial for Bentley's identity. To retain this design, significant technological advancements were necessary; otherwise, the range requirements could not be met.

This dilemma faced by Bentley is a common challenge in the electrification of ultra-luxury cars. At the same time, the core value of ultra-luxury cars lies in the pinnacle of mechanical artistry, the scarcity of industrial aesthetics, and the purity of driving pleasure—qualities that are lost in pure electric models.

In today's new energy era, electric motors can easily achieve impressive zero-to-100 km/h acceleration times, rapidly flattening performance metrics and undermining the mechanical scarcity that traditional ultra-luxury brands were built upon. For ultra-luxury brands, the dilemma of bearing huge costs for electric transformation while facing the erosion of their core brand values is the underlying reason why many are collectively scaling back their pure electric strategies and cautiously advancing electrification.

Goss stated, "I believe Bentley has grasped the right pace of electrification and made sound strategic considerations in launching a pure electric SUV model: As relevant technologies gradually mature and more customers become accepting and open to electric vehicles, this will also attract new customer groups—those who actively embrace new technologies."

As for Maserati, although Stellantis Group has declined to comment on the rumors, the repeated emergence of partnership news is seen as a new way for traditional luxury brands to differentiate themselves in electrification.

According to online sources, the tripartite cooperation project between Maserati's parent company, Stellantis Group, Huawei, and JAC Motors is nearing fruition. The project plans to launch two new high-end luxury pure electric models, with the entire vehicles manufactured by Hefei Zunjie Super Factory.

In this collaboration, Huawei is responsible for product definition, providing a complete suite of intelligent electric technology solutions, including the Harmony cockpit, Qiankun ADS advanced intelligent driving, and full-stack high-voltage electric drive. JAC Motors, leveraging the production capacity and manufacturing capabilities of Zunjie Super Factory, undertakes vehicle engineering development, chassis tuning, and mass production. Maserati leads in exterior styling design, provides brand endorsement, and handles channel operations in overseas markets.

However, several informed sources stated that the cooperation has not yet been signed. On September 11, when a Stellantis Group representative was directly asked about the rumors involving Huawei and JAC, they did not confirm specific partners but mentioned that they were seeking the best solution and hoped to announce a complete plan in December.

From the overall attitude of ultra-luxury brands toward electrification, Bentley and Maserati are merely "isolated incidents." Multiple ultra-luxury brands, including Lamborghini, Ferrari, and Aston Martin, are still in the systemic reassessment stage regarding pure electric vehicles. Finding a balance between the core assets that have supported their century-long brand narratives—V12 engines, chassis, mechanical structures, brand stories—and electrification remains an urgent challenge for ultra-luxury brands.

Focusing on High-End Customization Services

Amid the severe situation of sluggish high-end consumption growth, consolidating the premium positioning of internal combustion engine vehicles has become a key focus for ultra-luxury brands. Bentley and Rolls-Royce are concentrating more resources on their century-old brand heritage, exclusive design aesthetics, exquisite craftsmanship, and bespoke high-end service experiences, attempting to forge a differentiated competitive path.

Julian Jenkins, Sales and Brand Director of Rolls-Royce Motor Cars, stated in an interview with China Auto News, "Rolls-Royce has never been and will not be sales-driven. Instead, we meet our customers' expectations beyond the product itself through close relationships, providing unique Bespoke high-end customization services and exceptional customer experiences." He added that Rolls-Royce customers desire closer interactions with the brand and seek to enhance their connections and communication within a like-minded community.

Recently, Rolls-Royce officially unveiled the "Phantom Hummingbird" custom model, marking the first time abalone shells have been used for interior inlays. This work is the latest masterpiece of the brand's Bespoke program. By continuously introducing non-traditional materials, Rolls-Royce expands the boundaries of luxury definitions and reinforces its brand image as a carrier of top-tier craftsmanship. The Hummingbird custom edition does not participate in regular market competition; instead, it serves a very small number of high-net-worth customers seeking a unique experience, further solidifying Rolls-Royce's absolute authority in the customization field.

According to Jenkins, China is home to Rolls-Royce's youngest customer base, with about a quarter being female customers—a region where the brand has a relatively high proportion of female owners. Many Chinese customers draw customization inspiration from trendy fashion, modern urban life, and international lifestyles. Moreover, an increasing number of customers hope to express their understanding and preference for Chinese traditional culture and historical heritage through Rolls-Royce Bespoke high-end customization.

Goss also mentioned that he has seen some stunning custom commissions in the Chinese market, often from female customers or male customers customizing on behalf of their partners. The color combinations and configuration schemes created by these customers are bold and aesthetically striking—something never seen in other regional markets worldwide.

Such high-end customization services remain an unshakable core value for luxury brands. As Jenkins put it, "What we create is not just a car but a work of art rolling on the road."

Therefore, even in the midst of winter, ultra-luxury brands persist in maintaining this scarcity and emotional value. However, it cannot be ignored that, given the difficulty of perfectly transitioning to electrified products that embody brand core values in the short term, it remains uncertain whether relying solely on customization, craftsmanship, and services to build barriers can serve as the last bastion for ultra-luxury brands to resist the industry winter and stabilize their high-end market position.

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