It hasn't been a great year for Aston Martin so far in certain markets.
Thanks to the launch of new models such as the new Vantage, DBS Superleggera and special edition models like the Vanquish Zagato Shooting Brake and Vanquish Zagato Speedster, Aston Martin's sales saw a 26 percent increase in 2018 over the previous year. Last year, the British automaker sold 6,441 cars compared to 5,098 in 2017.
While sales were expected to grow in 2019, Automotive News reports that Aston Martin has had to reduce its sales and profits forecasts due to falling sales in Europe and the UK and "macro-economic uncertainties". The automaker has also previously blamed slow sales on the uncertainty of Brexit in the UK. As a result, Aston Martin's share price dropped by 22 percent, falling to £8 ($10) per share – that's a 55 percent fall over the £19 ($23) share price valuing the company at £4.3 billion ($5.3 billion) in October 2018.
Originally, Aston Martin expected to deliver 7,100 – 7,300 cars to dealers this year, but this target has now dropped to 6,300 – 6,500. In Q2 2019, demand fell by 22 percent in the UK, which is Aston Martin's largest market, and 28 percent in Europe. It's a different story in America, however, as volumes increased by 20 percent in the first half of the year.
"Whilst retails have grown by 26 percent year-to-date, our wholesale performance is adversely impacted by macro-economic uncertainty and enduring weakness in UK and European markets. We are disappointed that short-term wholesales have fallen short of our original expectations, but we are committed to maintaining quality of sales and protecting our brand position first and foremost," said Aston Martin CEO Andy Palmer.
"We are today taking decisive action to manage inventory and the Aston Martin Lagonda brands for the long-term. We remain focused on the successful execution of the Second Century Plan and on delivering sustainable long-term growth."
Palmer also confirmed to Autocar that production of its DBX SUV and Valkyrie hypercar "remain on plan". Aston Martin is now working to boost efficiency, reduce costs, and double volumes by 2023. A key part of this strategy will be the launch of its first-ever SUV, the DBX, which will debut this December and go on sale next year.