Aston Martin has reported that its revenue grew by 18% last year to total £1.6bn, following record average selling prices for its products.

The luxury car manufacturer announced that the average price of its core cars increased to £188,000 in 2023, up from £177,000 in 2022.

Despite this revenue growth, however, the higher average selling prices only helped Aston Martin cut its pre-tax losses from the previous year, as the carmaker was hit by production delays.

In its latest trading update, the group indicated that its first battery electric vehicle has been delayed and is now “targeted for launch in 2026”.

Last year saw Aston Martin make a pre-tax loss of £239.8m, although this was a 52% improvement on the £495m loss it reported in 2022.

“The rich mix of sales, driven by our ongoing commitment to product innovation, supported growth in average selling prices to record levels,” commented Aston Martin executive chairman, Lawrence Stroll.

“This, combined with our ongoing portfolio transformation, resulted in a significantly enhanced gross margin, remaining on track to achieve our longstanding target of around 40% gross margin in 2024.”

Stroll added that said he is “excited by the future development” of the group’s product portfolio looking to the rest of 2024, with the completion of several front-engine sports cars, including the recently unveiled Vantage, as well as the continuation of Aston Martin’s ‘Specials’ programmes.

“These and other advancements will support the delivery of the company’s near and medium-term financial targets, including positive free cash flow generation in H2 2024, as we unleash the power of our brand and continue our growth trajectory,” Stroll added.

However, lead equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, commented that Aston Martin had registered “disappointing momentum on margins”, despite the improvement in total revenue.

“Aston Martin is pumping reams of cash into marketing in a bid to help position itself at the ultra-luxury end of the spectrum,” Lund-Yates said. “This pivot was never going to come cheap, and that’s led to some disappointing momentum on margins.

“Repositioning the brand is ultimately a good idea, as super-luxury is a more resilient corner of the market than where Aston Martin is currently parked. So-called Specials volumes are moving in the right direction, with these personalised, more lucrative vehicles a good indicator of demand for more expensive vehicles.

“Longer term, it’s the effectiveness of the group’s hybrid models that will drive sentiment. For all Aston Martin’s heritage brand strength, electric is the direction of travel and the roadmap for this part of the strategy remains a little unclear.”

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