Luxury carmaker Aston Martin has issued a warning to its investors, stating that it expects to face significant losses this year due to a combination of weaker global demand and the impact of US trade tariffs. In response to these challenges, the British carmaker has revised its production forecasts and is urging the Labour government to provide support for UK manufacturers.
According to Aston Martin, the ongoing US-China trade war and broader economic pressures have led to a decline in sales in North America and the Asia Pacific region. As a result, the company has adjusted its guidance and now expects to post underlying losses exceeding £110 million for the full year. This is lower than analyst expectations and highlights the significant impact of the current market turbulence on the automotive industry.
In light of these challenges, Aston Martin is calling on the Labour government to take a more active role in supporting small-volume vehicle manufacturers, particularly in the face of US tariffs. The company stated that these tariffs have added “a further degree of complexity” for UK carmakers, making it even more difficult to navigate the current market conditions.
Despite these setbacks, Aston Martin remains determined to move forward with new product launches. It has confirmed that the deliveries of its highly anticipated plug-in hybrid model, the Valhalla, will begin in the final quarter of 2025. Alongside this, the company plans to launch the new Vantage S and DBX S models. However, due to the impact of the trade war and tariffs, it now expects to deliver only around 150 Valhallas during this period, which is below initial projections.
The company also highlighted potential challenges stemming from the recent cyberattack on Jaguar Land Rover, which has affected suppliers across the UK automotive sector. This further adds to the already difficult environment for the company and the industry as a whole.
In response to these challenges, Aston Martin has taken steps to reduce its capital expenditure forecast for the year from £400 million to £375 million. It also plans to review its future product development cycle in order to cut costs and weather the current market turbulence.
In a statement, Aston Martin said, “The global macroeconomic environment facing the industry remains challenging. Uncertainties surrounding tariffs, China’s ultra-luxury car taxes, and supply chain pressures continue to affect our operations.”
The news of Aston Martin’s expected losses has had a significant impact on its stock, with shares falling 7.9 percent to 74.9p in early trading on Monday. This follows a trend of declining stock value for the company, which 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, commented on the company’s situation, saying, “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.”
As Aston Martin and other luxury carmakers face ongoing challenges in the global market, it remains to be seen how they will navigate the current turbulence and emerge successfully. In the meantime, the Labour government has been urged to step in and provide support to protect UK manufacturers in these uncertain times.

Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.