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Bentley CEO warns car tariffs creating uncertainty

China

China

China

Bentley CEO warns car tariffs creating uncertainty

2025-04-25 13:26 Last Updated At:17:17

Bentley Motors' chief executive Frank-Steffen Walliser, at the ongoing Shanghai Auto Show, issued a stark warning about rising global automotive tariffs on Thursday, saying the marque has made preparations to navigate through the headwinds.

The 21st Shanghai International Automobile Industry Exhibition kicked off on Wednesday in east China's Shanghai. Themed "Embracing Innovation, Empowering the Future", the exhibition, also known as Auto Shanghai 2025, has attracted nearly 1,000 enterprises from 26 countries and regions, making it the largest in the event's history.

The British super luxury brand introduced its first hybrid model in 2018, marking the debut of the world's first luxury hybrid SUV. However, despite the transformation to EV in the auto industry, the company's fully electric vehicle is not expected until 2026.

The Volkswagen-owned marque sold just 10,643 vehicles globally in 2024, a 22 percent decline, making cautious electrification prudent. But Walliser explained that Bentley's 2027 timing aligns with luxury segment trends, noting premium buyers still prefer hybrids, adapting more slowly to electrification than mainstream consumers.

"We will introduce in 2026 and then come to the market in 2027, a fourth Bentley. That does not happen so often that a new Bentley arrives and the new model line arrives. And yes, this car will be fully electric. We see the segments develop different in different parts of the world with the acceptance of the electric cars. The Chinese market is, in volume for NEVs, definitely the leader on electric cars, maybe doubles the volume of new cars in comparison to other markets, but this is volume and premium. It's different in the luxury segment. The luxury segment is very much dominated by plug-in hybrids or ICE (internal combustion engine) only, and this is also what we offer to our customers. If we introduce the car, it will be really, really something new in this segment and shows again that we are amongst the leaders also in the technology space for introducing a fully electric car in the luxury segment. So we have a feeling that our timing is very good, as the luxury segment definitely behaves (in different way that) the market is different, and customer expectations is also different than in the volume sector, so it's not comparable," Walliser said.

There are three Bentley models on the market, including a full-size SUV Bentayga, a sedan Flying Spur and the Continental GT.

Walliser said the current tariff environment presents a "very difficult situation" for automakers, with customers delaying purchases due to unpredictable trade policies.

He said Bentley has prepared multiple scenarios to address varying tariff levels across markets, but admitted the uncertainty complicates long-term planning for the marque.

"This is a very good question, very very difficult situation for all manufacturers in the moment. Tariff is one thing, (what's) even more difficult is the unpredictability and the uncertainty in the markets. Customers we see just hold back with their decisions, whilst it's not clear will the tariffs stay or will they go away. So no decisions are made from our customers. Very difficult situation. We have different scenarios, we are prepared for it and then we will react according to the tariff levels we see in different parts of the world. But we have also different markets where we will then go make another approach to our customers. But honestly, a very unique situation known to the world, no one has seen that before. Definitely, we would have hoped, and we would have asked to stop it," Walliser said.

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

Bentley CEO warns car tariffs creating uncertainty

The 139th China Import and Export Fair, or Canton Fair, continues to host "Trade Bridge" buyer-supplier matchmaking events, designed to better address the core needs of both parties while facilitating two-way trade.

Among the international attendees is Ilirjan Koneshlini, a buyer from Albania who has participated in seven consecutive editions of the Canton Fair since 2023. In addition to exploring the exhibition halls, Koneshlini has focused much of his energy on attending the officially organized "Trade Bridge" matchmaking events.

Over the past three years, he has established partnerships with seven Chinese suppliers through various trade promotion events. At the current edition of the Canton Fair, he has already reached preliminary cooperation agreements with three additional Chinese suppliers.

"I have seen matchmaking as a very important event. They would like to align their economic interests and strategic interests, so that happens very well during the matchmaking. It has been quite a help for my businesses," he said.

To further enhance the effectiveness of these matchmaking efforts, the 139th Canton Fair has upgraded the procurement service area for leading enterprises. For the first time, the fair has introduced a reservation-only exclusive negotiation zone, where buyers and suppliers can reserve negotiation spaces free of charge, enjoying a more comfortable and private environment for discussions.

The current edition of the Canton Fair runs from April 15 till May 5 in Guangzhou City, south China's Guangdong Province in three phases, each highlighting categories from advanced manufacturing to home living and lifestyle products. Covering 1.55 million square meters, the fair features 75,700 booths and more than 32,000 enterprises, including about 3,900 first-time exhibitors. Phase Two opened on Thursday with a focus on showcasing home-living products.

Established in 1957, the Canton Fair is held twice a year in Guangzhou. It is the longest-running comprehensive international trade event in China and has been hailed as a barometer of China's foreign trade.

Canton Fair continues 'Trade Bridge' matchmaking events

Canton Fair continues 'Trade Bridge' matchmaking events

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