Aston Martin has reported a dramatic increase in losses as Donald Trump's new tariffs on UK car imports and weak demand from China hit the luxury carmaker's finances.
The company recorded a pre-tax loss of £112 million in the three months to September, compared with just £12 million in the same period last year – an increase of more than 800 per cent. Revenue fell 27 per cent to £285.2 million, reflecting what the company described as “extremely weak” trading conditions in key export markets.
Shares in the FTSE-listed automaker fell nearly 6 percent on Wednesday as investors reacted to the latest in a series of profit warnings from the iconic British brand.
The company blamed much of the financial pain on the deepening impact of US import tariffs introduced by President Trump earlier this year. The White House imposed a 10 percent tariff on UK-made vehicles, a move that has particularly hurt Aston Martin, which relies heavily on the US as the main luxury market.
The outcome of the US-China trade dispute has also impacted global automotive demand. “This year has been marked by significant macroeconomic headwinds,” said Adrian Hallmark, Aston Martin's recently appointed chief executive and former Bentley boss. “The continued impact of US tariffs and weak demand in China have impacted our performance.”
Rival manufacturers have also issued similar warnings. Mercedes-Benz reported a 31 percent drop in profits this week, blaming the “market environment in China” and ongoing “tariff policies” in the US.
The results are the latest blow for Aston Martin, which has faced repeated delays in launching new models as it struggles to stabilize cash flow. Earlier this month, the company had postponed deliveries of its Valhalla supercar, citing “production readiness adjustments”.
Adding to its difficulties, Aston Martin has warned of potential supply chain disruption linked to the major cyberattack on Jaguar Land Rover (JLR) in late August. The hack forced JLR to halt production for five weeks, adversely affecting shared suppliers in the UK automotive sector.
Aston Martin said there was “potential for increased pressure on the supply chain” due to the cyber incident and UK car production overall fell to a 73-year low last month, according to the Society of Motor Manufacturers and Traders (SMMT).
Executive Chairman Lawrence Stroll, who led the 2020 rescue of the 111-year-old carmaker, said the year had brought “many unexpected challenges,” but he stressed the company remained focused on cost discipline and long-term growth.
Capital expenditure has been reduced to £254 million so far this year, down from £300 million in 2024, and is now forecast to reach £350 million by the end of the year – a significant reduction from the £400 million estimated earlier in the year.
Aston Martin also confirmed it will reduce its five-year investment plan from £2 billion to £1.7 billion, and will continue to reduce borrowing costs, with funding fees falling from £77 million a year earlier to £65 million in 2025.
Despite the turmoil, Stroll struck a challenging tone: “My belief in the long-term prospects for this iconic British brand and my commitment to the company remain unwavering,” he said.
The huge loss underlines how vulnerable Britain's iconic carmakers are to global trade tensions and changing demand patterns. Analysts said that while Aston Martin's brand remains one of the strongest in the luxury automotive sector, its balance sheet is highly leveraged and exposed to geopolitical risk.
The company continues to invest in hybrid and electric vehicle development – necessary to meet global emissions regulations and long-term competitiveness – but analysts warn that repeated shocks to supply chains and global trade could delay its recovery.
Aston Martin's next big test will come in early 2026, when it is due to launch its first fully electric sports model, seen as central to its turnaround strategy and future relevance in a fast-growing market.
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.
