An iconic British brand has felt the sting of China’s economic slowdown with sales figures leading to a fall in profit margins. Bentley, now owned by Germany’s Volkswagen Group, reported operating profits were down a staggering £178million compared to last year.

The firm reported an operating profit of €373m (£314m) in 2024, still the fourth-highest in the company's history. However, the figures were still down on the €589m (£492m) of profit enjoyed by the brand back in 2023. The numbers are also down on the record-breaking 2022 figures where Bentley picked up profits of around £595m.

Despite the drop, Bentley CEO Frank-Steffen Walliser welcomed the news and stressed the company had “laid the foundation” for the future.

He said: “We consider 2024 a positive year, despite the headwinds we felt in some of our markets.

“Three of our four models were heavily updated, so with all the investment it was a transition year, and we’ve laid the foundation for 2025 in terms of the products.”

Bentley has also confirmed the brand still aimed to become an electric-only brand by 2035. 

Mr Walliser revised the target last year after Bentley had initially hoped to shift their focus to EVs from 2030.

Bentley expected to reveal its first electric machine in 2026 before it goes on sale to the public in 2027.

In a boost for the UK car market, Bentley’s new electric model will be built at a new assembly line in Crewe.

The Bentley boss also addressed concerns over possible US tariffs and the knock-on effect it could have on consumers.

Last month, US President Donald Trump suggested that he could invoke said tariffs of up to 25% on foreign cars in a bid to bolster US industry.

However, the Bentley chief has now suggested that any US tariffs could be passed directly onto consumers in a major blow.

Frank-Steffen Walliser added: “We are assessing different scenarios on how to handle it, but it would eventually be passed on to consumers.”