UK car giant Rolls-Royce has announced it will be backing away from electric vehicles despite renewed pressure from Labour.
The car brand confirmed that it will continue producing V12 petrol engines well into the 2030s due to growing demand from drivers.
The British brand, owned by BMW, had previously pledged to go fully electric by the end of the decade, a commitment it announced in 2021 alongside the launch of its first battery-powered model, the Rolls-Royce Spectre.
However, the company has now shifted its stance, pointing to strong customer demand for traditional engines and a changing political landscape both in the UK and abroad.
Chief executive Chris Brownridge said many buyers still want the brand’s classic driving experience. “We recognise some clients would rather have a V12 engine. The V12 is part of our history,“ he told The Times.
Rolls-Royce cars, which often cost more than £300,000, are built individually to customer specifications.
This bespoke approach allows the company to respond directly to what buyers want, rather than committing to a fixed production strategy.
The move comes as Labour pushes along with its Zero Emission Vehicle mandate, which requires all new car sales to be electric by 2035.
Rolls-Royce has been touted as a stock to add to the portfolio in 2026 | ROLLS-ROYCE
But crucially, its plans include exemptions for low-volume manufacturers such as Rolls-Royce.
Car brands are required to meet the EV targets or risk penalties of £12,000 per non-compliant vehicle.
Since Rolls-Royce sells fewer than 2,500 cars annually in the UK, it is currently not subject to strict electric vehicle sales quotas under the revised rules by Labour.
The company also said global developments are playing a role, with President Donald Trump scrapping targets for half of all car sales to be electric by 2030 in the US. Meanwhile, European regulators have softened their approach to banning petrol cars entirely by 2035.
The brand has announced a new strategy away from electric vehicles
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ROLLS-ROYCE/GETTY
These changes are particularly important for Rolls-Royce, as North America remains its largest market. Mr Brownridge said the evolving regulatory picture had given the company greater “flexibility“ in its long-term planning.
The figures underline the brand’s continued strength. Rolls-Royce delivered 5,664 vehicles worldwide last year and is now investing £300million to expand its Goodwood factory in West Sussex to meet growing demand.
Other luxury carmakers, including Bentley, Aston Martin and Ferrari, have all scaled back plans to go fully electric in recent months.
Bentley this week confirmed it would cut around 300 jobs as it prepares to bring its first electric models to market, highlighting the challenges facing the sector.
Rolls-Royce is planning to cut its electric car plans
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ROLLS-ROYCEHigh-end, luxury brands report that customers are not ready to make the switch away from petrol engines, especially with the performance.
While electric vehicles are becoming more common among everyday drivers, the ultra-premium segment is moving at a slower pace.
Despite political pressure and ambitious environmental targets, Rolls-Royce said it is keeping its options open while stating plans to keep its iconic V12 engine alive for years to come.