Aston Martin Faces Heavy Losses as Trade Tariffs and Weak Demand Hit Forecasts

Luxury carmaker urges Labour government to support UK manufacturers amid market turbulence

Aston Martin has warned investors it expects to post steep losses this year after cutting its production forecasts in response to weaker global demand and the impact of US trade tariffs.

The British carmaker said on Monday that tariffs and broader economic pressures have affected sales in North America and the Asia Pacific region, forcing the group to adjust its guidance. It now anticipates full-year underlying losses exceeding £110 million, with earnings expected to fall to the lower end of analyst expectations.

The company urged the Labour government to take a more active role in supporting small-volume vehicle manufacturers, warning that US tariffs have added “a further degree of complexity” for UK carmakers.

Aston Martin confirmed that deliveries of its plug-in hybrid Valhalla model are set to begin in the final quarter of 2025, alongside the launch of the new Vantage S and DBX S. However, it expects to deliver only around 150 Valhallas during the period—below initial projections—and said further delays could occur if the ongoing US federal government shutdown disrupts certification procedures.

Wholesale vehicle volumes are now forecast to fall by a mid-to-high single-digit percentage compared with last year’s total of 6,030 units. The company delivered 1,430 vehicles in the third quarter, down from 1,641 a year earlier, citing weaker demand in key markets and the continued effect of tariffs.

Aston Martin also highlighted potential disruption stemming from the recent cyberattack on Jaguar Land Rover, which has affected suppliers across the UK automotive sector. In response to the challenging environment, the company has reduced its capital expenditure forecast for the year from £400 million to £375 million and plans to review its future product development cycle to cut costs.

“The global macroeconomic environment facing the industry remains challenging,” the group said. “Uncertainties surrounding tariffs, China’s ultra-luxury car taxes, and supply chain pressures continue to affect our operations.”

Shares in Aston Martin fell 7.9 percent to 74.9p in early trading on Monday. The stock has lost nearly a third of its value over the past year and more than 80 percent over the past five years.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “Volumes remain the sticking point. Despite new models, sales aren’t reaching the levels needed to turn a profit. Management is cutting costs and delaying spending, but the road to recovery looks long and uncertain.”