McLaren Automotive: A Success Story

Driven by strong sales of the MPC-12C and the P1 McLaren Automotive achieved record sales in the year 2014. The tally of 1648 super cars moves the company closer to its goal of producing 4000 cars per year in the near term. The super car market, where vehicles go for anywhere between $260,000 and $1.8 is a small share of the overall global auto market. The general global automobile market has grown to about 50 million units in 2014 and is on track to hit another record in 2015. This is on the back of a continued surge in demand from emerging economies like China. Despite a slowdown this past year in economic growth, further sales growth is anticipated in these markets. Coupled with renewed strength in the North American Auto sector, where 19 million units are forecast to move in 2015 and it is shaping up to be a strong year for all automotive players. and competitor Lamborghini, despite both being at the high end of the marketplace, will also experience a boost from this trend. With McLaren looking to close the production and sales gap between itself and its competitor who sold 2430 units in 2014.

MPC-12C – Drives Demand

MP4-12C

Continued growth in the popularity of the MPC-12C has fueled the company’s sales over the past year. The P1 on the other hand was positioned to make less of an impact on the company as its lifetime production run was capped at 375 in order to maximize the exclusivity factor for the customer. Starting at around $300,000 American dollars, the MPC-12C makes up an important component of the company’s growth strategy going forward. Its continued popularity particularly in growing Asia was largely responsible for the 80% sales growth experienced in the market this past year. In total McLaren will open 30 new dealerships next year, bringing its worldwide total to 98. Many of these new dealers are located in the booming markets in Asia. In this , he talks about the 12C and how high tech it is compared to its rivals.

P13 – Continued Growth

P13

A key plank of Ron Dennis’s plan to expand the company, hit the 4000 units per year goal, and create sustained profitability is the new entry-level sports series. The basic model super car will start selling at $265,000 per year. Code-named the P13, it will no doubt experience strong demand on account of the brand, and the growing global market for super cars. McLaren plans to debut the vehicle in 2016, however photos of it in testing have already surfaced.

Growth in High Net Worth Population Driving Demand

Gwoth in high net worth
Globally the high net worth population is growing. Even in developed countries where the economy has been stagnant the number of millionaires, or perspective McLaren super car buyers has increased dramatically over the past few years. In the developing world demand is equally strong. China added 40,000 millionaires on its own in the year 2014. This while the United States economy, the largest market for McLaren Automotive’s products continued to recover after years of stagnation and zero growth. Going forward this global trend will continue to see an increased customer base for the super car makers products.

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