British luxury carmaker Aston Martin is delaying the launch of its first fully electric vehicle (EV) to 2026 due to lower-than-expected consumer demand, announced executive chairman Lawrence Stroll on Wednesday.
The pivot comes as record prices for Aston Martin’s special edition gasoline models helped shrink annual losses in 2022.
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- Aston Martin delays its first EV launch in 2026 amid lower-than-expected demand.
- Luxury hybrid models will drive record pricing and sales volume in 2022.
- The near-term focus stays on expanding the combustion engine sports car portfolio.
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Aston Martin Pushes Back First EV to 2026 as Luxury Combustion Models Boost Revenue
Aston Martin originally planned to launch its first battery-electric vehicle (BEV) in 2025.
However, Stroll stated that consumer interest in EVs at Aston Martin’s high price point was overestimated two years ago.
Instead, the company is seeing stronger enthusiasm for plug-in hybrid models that “still have the sports car smell and feel and noise,” said Stroll.
As a result, Aston Martin will first focus on delivering hybrid supercars like this year’s Valhalla.
The delayed EV launch aligns Aston Martin with other automakers like Mercedes-Benz, which has also pushed back full electrification targets amid growing investment needs.
However, Aston Martin remains confident in available EV technology and platforms through partnerships like its 2021 supply agreement with Lucid Motors.
Booming Luxury Car Sales Help Narrow Losses
While pivoting on EVs, Aston Martin saw its losses narrow significantly in 2022 as prices and volumes for special edition models hit record highs.
- Annual pre-tax losses more than halved to £171.8 million, beating analyst expectations.
- Losses shrank due to deliveries of in-demand vehicles like the Valkyrie and DBX707 SUV.
- Average selling prices increased 17% to over £150,000.
Aston Martin aims to turn free cash flow positive in H2 2023 once delayed deliveries of luxury models like the DBX and Valhalla are completed.
The company maintained existing forecasts and will continue investing heavily in brand positioning and marketing.
New Sports Cars Support Aston Martin’s Luxury Pivot
Aston Martin’s narrowing losses and strong prices for special editions come alongside an expanding portfolio of next-generation sports cars:
- The company unveiled its new Vantage sports model in February 2023.
- Aston Martin’s first hybrid supercar, Valhalla, enters production this year.
- The DBX707 high-performance SUV continues generating strong interest and sales.
- Special models like the V12 Vantage bolstered Aston Martin’s ultra-luxury brand positioning.
While the EV rollout is delayed, Aston Martin’s focus on exclusive sports cars and hybrids aims to boost revenues and margins in the near term.
However, the long-term demand for luxury EVs remains uncertain.
Aston Martin must carefully balance its combustion-engine models with electrification to maintain its exclusive brand image.
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