Rich buyers continue to snap up high-end sports cars despite soaring inflation and an uncertain economy, industry editor Howard Mustoe writes.
Porsche and Aston Martin have both been buoyed by continued strong demand for luxury cars, with the British car marque saying its models were already “essentially sold out for the year.”
Stuttgart-based Porsch said it sold almost a fifth more of its 911 sports cars, which helped boost its revenues by a quarter to €10bn in the first three months of the year.
In total, the German brand delivered 80,767 cars in the first quarter, up from 68,426 a year earlier.
The only disappointment came in its delivery of the all-electric Taycan, where sales fell 3pc as it struggled to source parts for the battery-powered car.
Meanwhile, strong deliveries of Aston Martin’s top-end DBX-707 SUV-style car helped push sales up 9pc in the first three months of the year.
It sold 1,269 cars and the average sale price climbed to £180,000, up from £151,000 a year ago.
Revenues rise by 27pc and loss narrowed to £74m, down from £112m a year ago.
The 110-year-old company’s plan is to ramp up production and capitalise on strong demand for its new models.
Luxury car makers are prioritising their highest-spec cars for sale and finding that rich customers have deep enough pockets to pile on more optional extras. In the DBX’s case, that is a 697-horsepower V8 engine fitted in the 707 model that can add £25,000 to the price.
Lawrence Stroll, Aston Martin’s executive chairman and controlling shareholder, said: “Since the start of the year, we have continued to see strong demand across our product range, with our current range of sports cars essentially sold out for the year.”
Aston is aiming for £2bn sales by 2025. It should hit this target by selling 8,000 cars annually, compared to the 6,412 it sold last year.
The sports car company has struggled with high debts since it was re-listed on the stock market as an independent business in 2018. Debts are held in dollars and a tumbling pound has made the interest costlier.
Debts shrank by 9pc to £868m during the first three months of the year.
Mr Stroll last year oversaw a £653m capital raise to help shore up Aston Martin’s balance sheet. The car maker raised money from existing investors and Saudi Arabia’s sovereign wealth fund, a new backer.
