Aston Martin sees profit for the first time in a decade. Image credit: Aston Martin
After a decade of seeing no profits, Brexit has helped Aston Martin become the fastest growing automotive brand, according to Brand Finance.
Weakened currency in the United Kingdom, where Aston Martin is based, has supported the automaker's $3.6 billion growth over the past year, reported in Brand Finance Auto & Tyres 2018 report. While Aston Martin was the fastest growing brand, Mercedes-Benz has surpassed BMW and Toyota as the most valuable manufacturer in the automotive sector with a year-over-year growth of 24 percent.
“Aston Martin’s brand value grew with remarkable speed, up 268 percent to $3.6 billion, as it took the checkered flag for the fastest-growing brand in the automobile sector,” said Alex Haigh, director of Brand Finance, London. “Aston Martin had a very positive year, with its first profit for a decade, boosted by the Brexit-related devaluation of the British Pound.
“This allowed the manufacturer to continue to deliver a high-quality product, but at a lower cost to international consumers,” he said. “Aston Martin is roaring back into the top ranks of luxury car makers.
“The brand is famed for offering a high-end product and respected for the quality they deliver. Exploiting one of the strongest series of planned model launches in the sector, Aston Martin is now a darling for investors and a brand that Britain should be proud of.”
Auto growth
In Brand Finance's report, findings showed that Mercedes saw a 9.9 percent increase increase in sales, with a total of 2.3 million cars sold. The popularity of SUV models has helped Mercedes' growth, with 805,000 of its global vehicle sales being SUVs.
In support of this growth, the German automaker has been investing in technology to cater to today's connected consumer.
Recently, Mercedes dramatically emphasized the launch of its A-Class in a series of preemptive teasers, but the brand reveals why, as the car comes with industry-changing launches.
Mercedes' new A-Class open the door for car sharing
The entry-level Mercedes was recently revealed at an event in Amsterdam broadcasted on Facebook Live, following a variety of video teasers and images on social that heightened the news. However, hype surrounding the A-Class is warranted, as the vehicle will usher in car-sharing features that could reshape the industry (see more).
While Mercedes did overtake BMW, the latter was able to hold a position as the third most valuable car brand with an increase of 6 percent.
Bentley also saw its value increase and rose in the ranks by 11 spots this year, from 47 to 38. The automaker saw a jump of $600 million in value to $2.5 billion.
Bentley Motors' new Bentayga V8. Image credit: Bentley
To help continue the brand's growth, Bentley Motors is looking to draft and nurture the next group of talented apprentices with the hope of planning a strong future for its company.
Bentley is beginning its early stages of this year’s trainee recruitment program, in which it employs the best talent of the next generation. Positions in departments such as sales, marketing, human resources, finance, engineering and manufacturing will now be available to skilled individuals at the apprentice, graduate and undergraduate levels (see more).
Demand and growth
Tesla and Jaguar also made significant strides alongside Aston Martin with rapid growth. Tesla saw a growth rate of 106 percent and Jaguar 105 percent.
The electric automaker rose from its previous ranking in brand growth at number 30 to 19, which is likely supported by its affordably priced model in production. However, the brand is struggling with keeping up with demand.
Land Rover and Porsche also saw significant growth, at 64 percent and 54 percent, respectively.
“Surprising, is that whilst manufacturers are producing a whole range of new environmentally-friendly models, sales of larger sports utility vehicles have generated a spike in revenues for many brands, leading to SUVs now representing 34 percent of all new car sales to almost 28 million units globally,” Brand Finance's Mr. Haigh said. “This includes Mercedes-Benz and Nissan.
“The high-end SUV market is booming with a number of new product launches by luxury brands last year, including the Audi Q5 and Alfa Romeo Stelvio,” he said. “In the near future, premium brands Rolls-Royce and Aston Martin are looking to cash in with the increased popularity of SUVs, as they seek to launch the Cullinan and DBX respectively in 2019.”