Luxury cars in crisis: falling production and lack of interest in electric cars

The latest company to lower its forecasts is Aston Martin. In the last few days, the British manufacturer has readjusted its projections for the current year. Both sales and profits are expected to be lower than last year. Aston Martin expects to produce 1,000 fewer cars than in 2023, a 14% drop in overall production. The company's CEO, Adrian Hallmark, announced last week that he had received his first profit warning, prompting the British manufacturer to revise its accounts.

The 14% drop also concerns Mercedes Benz production for 2024: this year, the German manufacturer will only produce 6,000 cars, slowed down by supply difficulties and the stagnation of the Chinese market. The same applies to Porsche, which had already announced a 'cost-cutting' programme in July after a problematic first half-year, citing the same reasons. Between January and June, Porsche delivered 7% fewer cars than in the same period last year.

 As CEO Oliver Blume explained, the German manufacturer intends to slow down investment in the development of electric and hybrid engines, which it has invested heavily in in recent years. The lack of customer interest in new electric models generally affects all luxury car manufacturers.

Another giant affected is Bentley. While the brand was betting its future on the electric-only programme, which was announced two years ago and should have been finalised by 2030, likely, the brand's future steps and Beyond100 and #GotoZero projects - conceived to achieve carbon neutrality - will have to be adjusted. Five 100% electric vehicles were due to be offered to the public next year, but everything seems to be in doubt. Since last July, frank-Steffen Walliser, Bentley's Managing Director, pointed out that luxury car buyers find it difficult to associate the idea of a top-of-the-range car with an electric vehicle.

Attitudes haven't changed enough on the subject, and for now, the hybrid engine is a more attractive option than all-electric. The first 100% electric Bentley is expected to be unveiled in 2026, with market entry in 2027. But given the situation, plans could still change.