Volkswagen-owned Bentley reported its 2024 financial results on Wednesday, showing significant headwinds as operating profit fell 37%, while revenues dropped to their lowest level since 2020 at €2.65 billion ($2.9 billion). It marked the second consecutive year of double-digit profit and revenue declines at the luxury carmaker.

The key reason Bentley CEO Frank-Steffen Walliser gave for another dip in revenue and profits was falling demand in China, which has blighted several carmakers, including Bentley’s parent Volkswagen.

Walliser praised a “positive year despite the headwinds ” but warned of more obstacles to come this year.

“Looking forward to 2025, of course we continue to navigate difficult global market conditions and maintained volatile political and economic environments, however our strength of sales is strong.

Speaking to reporters, Walliser confirmed a trade war set off by Trump could have knock-on effects on the price of Bentley cars.

“We are assessing different scenarios on how to handle it, but it would eventually be passed on to consumers,” said Walliser.

Trump has targeted vehicle imports with tariffs as he seeks to reshore several industries and improve U.S. competitiveness, arguably at the expense of the price consumers pay for their goods.

Several carmakers have sought to assuage investors’ fears that they could be affected by tariffs, with BMW among the companies discussing plans to shift manufacturing of U.S.-intended sales to factories located in the States. BMW CEO Oliver Zipse said last week, however, that tariffs could cost the carmaker €1 billion ($1.1 billion).

With most of Bentley’s production occuring at its Crewe plant in the U.K., the group will hope its luxury offering will be enough to keep customers returning in the event of price rises.

Bentley’s customization push

While Bentley has struggled with falling overall revenues, the carmaker was able to eke out more sales from each of its customer segments. The group said revenue per car had increased by 10% in the last two years, thanks to growing interest in pricey modifications.

Bentley enjoyed record levels of customization demand in 2024, with 70% of customers choosing to pay more to modify their Bentleys with the Mulliner bespoke option, which allows drivers to change the color of their car’s wheels or body. Walliser said Bentley would prioritize “value over volume” in 2025 to lean into those shifting tastes.

Continued interest in modification will be welcome news to Bentley. Speaking after its 2023 earnings release, former CEO Adrian Hallmark said consumers reduced their demand owing to “emotional sensitivity” creating a resistance to spending big on the carmaker’s six-figure offerings.