Investors hoping sales have accelerated at Aston Martin

Luxury carmaker Aston Martin will update investors on the impact of lockdown restrictions on demand when it reports full-year figures on Thursday.
The Aston Martin DBX is seen as being a crucial part of the luxury carmaker's success in 2021. Picture: contributed.The Aston Martin DBX is seen as being a crucial part of the luxury carmaker's success in 2021. Picture: contributed.
The Aston Martin DBX is seen as being a crucial part of the luxury carmaker's success in 2021. Picture: contributed.

The manufacturer saw sales fall by 41 per cent, to 1,770 vehicles, in the first half of the year with revenues dropping to £146 million from £406m a year previously. New boss Lawrence Stroll has been dealing with the huge task of turning the ailing business around, with a strategy focused on its new DBX SUV, as well as its involvement in Formula 1.

In October, Aston announced a £1.3 billion refinancing package that involves a 20 per cent stake taken by Mercedes, which has helped boost sentiment in recent months.

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The investment will provide support to the UK firm in areas such as developing hybrid electrification technology, and management is looking to target the sale of 10,000 vehicles a year by 2025. At the same time, Aston Martin said the pace of recovery in sales of its cars was likely to vary on a region-to-region basis, particularly at a time when Covid-19 restrictions have hindered demand.

Michael Hewson at CMC Markets pointed out that last year, the firm only sold 324 of its flagship Vantage coupes, a decline of 67 per cent, and much now hinges on its DBX SUV model.

“A lot of faith appears to be being put into the new DBX; however most Aston Martin owners are probably not your typical SUV buyer,” he added.

The model, priced at around £160,000 in the UK, will compete against other ultra-luxury SUVs such as Lamborghini's Urus, Bentley's Bentayga and Rolls-Royce's Cullinan.

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