20 Nov 2019
Posted in Automotive
Aston Martin places its bets on China’s economy for new DBX success, says GlobalData
Following the news that Aston Martin is entering a new segment with its Wales-made DBX luxury crossover;
David Leggett, Automotive Editor at GlobalData, a leading data and analytics company, offers his view:
“The stakes are very high for Aston Martin with this model, which takes the company into a new segment and – the company hopes – to new customers.
“Its appeal to markets such as China, the world’s largest market for premium, sports and luxury vehicles, will be especially important.
“Aston Martin posted a loss of £13.5m in the three months to September 2019, and its share price has plummeted since flotation last year. Developing a new production facility for the DBX has been costly and the company has taken on more debt to fund the project. Revenue from sales of the new model can’t come soon enough for the firm.
“Aston Martin will be hoping that the Chinese economy picks up in 2020 and that high-net-worth individuals are attracted to the DBX, which also faces tough competition in the super-luxury SUV segment from other brands such as Bentley and Lamborghini.
“DBX sales are rapidly needed for Aston Martin to restore investors’ faith in the brand and its growth strategy.”