Because doing business in the world's largest car market is vital to success.
While the future of its local UK market is in question due to Brexit, Aston Martin is moving beyond domestic borders to become a truly global automaker. It has just announced a five-year trade and investment drive in China worth over 600 million GBP, or around $849 million going by current exchange rates. AM's goal is to expand into the world's largest automotive market following an excellent 2017 in China which saw an 89 percent growth rate, mainly thanks to the all-new DB11.
CEO Dr. Andy Palmer recently accompanied British Prime Minister Theresa May in a UK business delegation to China to sign and seal the deal. "Our impressive 2017 performance in China reflects increasing demand for our new and special vehicles," Palmer said. "The continued roll-out of our new model pipeline, including the company's first electric vehicle in 2019, will further improve Aston Martin's market share in this key market, alongside investments we are making to strengthen brand visibility and sales performance. These investments reflect our confidence in the Aston Martin brand and the attractiveness of the Chinese market which was our fastest growing region in 2017."
Demand in China will increase further thanks to the new Vantage. The first-ever AM SUV will also debut next year. In order to handle the influx of new product, new AM dealerships will be required. In addition to the aforementioned investment, there will be a 20 million GBP investment in a Chinese dealer expansion program. This will include a new state-of-the-art showroom in the heart of Beijing. By the end of this year, the dealer network will be augmented by 10 new and refurbished locations. Based on everything AM is telling us, it sure sounds like China could soon become its hottest market. What could come next? A new production plant in China? At this rate, anything's possible, especially given the uncertainty caused by Brexit.