McLaren's profits and sales rise despite China slowdown
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Version 0 of 1. Sales of McLarensports cars in China slowed “quite dramatically” at the end of last year after Beijing launched an anti-corruption drive. A rise in sales across Asia, triggered by an expanding network of their stores, was part credited with the increase in revenues from £285.4m to £475.5m. Chief executive Mike Flewitt said that while the company had a successful launch in China, sales slowed after the government made buying a luxury vehicle appear socially unacceptable. Customers are now buying cars but asking the company to hold off on delivery, he said. McLaren Automotive’s vehicles range in cost from £140,000 to £2m. Last year, it delivered 1,649 cars, said Flewitt. Profit before tax grew to £15m last year, from £4.5m the previous year. Flewitt said that the typical buyer of one of their cars in western Europe is a 45-year-old male who had been successful in business, but in China, buyers tended to be aged in their 20s. “[In] China we had a very strong launch at the end of 2013 and 2014 was going incredibly well. Come November/December we saw the market slow down quite dramatically,” he said. The Woking-based company said there had also been growth in North America, Europe and the Middle East but the greatest rise was seen in Asia. Between the end of 2013 and the end of 2014, the numbers of retailers they had in China went from four to nine. The company said it aimed to make 1,800 vehicles in the current year and raise production to 4,000 by 2017. it |