On July 30, British luxury car manufacturer Aston Martin issued a profit warning, citing a slowdown in the Chinese economy leading to weak demand in the Asia-Pacific region, coupled with the impact of U.S. import tariffs, severely affecting the company’s operations. The news caused Aston Martin’s stock price to plummet by 7%.
The Asia-Pacific region currently accounts for over a quarter of the company’s revenue, with the Chinese market particularly weak due to economic softness and consumer spending tightening. The company stated that sales in China were nearly flat in the first half of the year, with overall market conditions being “extremely stagnant” and unlikely to rebound in the short term.
Aston Martin revised down its full-year financial forecast, estimating that adjusted operating profit for 2025 will remain roughly flat, falling below the previously expected positive growth. The company also mentioned that the appreciation of the pound and investments in software development will further squeeze profit margins.
In addition to weakened demand in China, recent tariff measures implemented by U.S. President Trump have also put pressure on the company’s operations. Senior executives expressed during a conference call that second-quarter performance had been “significantly disrupted” by tariff policies.
Under a trade agreement signed between the U.S. and the UK last month, the U.S. imposes quotas on imported cars from the UK, with a 10% tariff benefit on the first 25,000 British-made cars per quarter, and a tariff of up to 27.5% on excess amounts. This “first come, first served” quota system makes it difficult for businesses to estimate actual costs and profits.
Aston Martin CEO Adrian Hallmark stated that the company is actively negotiating with the UK government to improve the system and ensure stable application of preferential tax rates for the entire British automotive industry.
The company revealed that it resumed exports to the U.S. in June, after temporarily halting shipments to clear inventory, and gradually raising prices in the U.S. market to accommodate the high tariffs.
In fact, under the new tariff policy in the U.S., many global car brands highly reliant on Chinese manufacturing and exports are facing significant pressure. Companies like General Motors, Volkswagen, Hyundai, Porsche, and Mercedes-Benz, whose production lines or component supplies are heavily concentrated in China, have suffered losses in the billions of dollars due to punitive tariffs imposed by the U.S., leading to downward revisions of forecasts and profit warnings.
Analyst firm Bernstein pointed out: “Given the current headwinds in exchange rates, increased business investments, and lower sales volumes leading into the fourth quarter, Aston Martin’s downward revision of its financial forecast is understandable.”
As a renowned British sports car manufacturer, Aston Martin gained widespread fame for repeatedly being featured as James Bond’s vehicle in movies. As of 9:51 AM Greenwich Mean Time, the stock price had narrowed its decline to 3.6%.
(This article referenced reporting from Reuters)