Martin Josephi
Director General
Lamborghini, Aston Martin, Caterham and Morgan Mexico
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View from the Top

Sustained Growth Despite a Decelerating Market

Wed, 05/08/2019 - 11:38

Q: How have your results evolved considering the overall growth of the luxury market?

A: The exotic super-sports car (ESSC) market has enjoyed continuous growth for the past five years. Between 2012 and 2013, this segment was controlled by Lamborghini, Ferrari, Bentley, Porsche’s high-end line and Maserati. Since then, new brands have entered, including Aston Martin, McLaren, RollsRoyce, Lotus and other smaller brands such as Caterham and Morgan. Practically all brands are now competing in the ESSC Mexican market but still, we are selling more than in the early days. We do not know how long this trend will last but in the case of Lamborghini and Aston Martin, we sold our entire stock through December 2018 by July 2018. 

Q: What reasons are behind the growth in the overall luxury segment?

A: Economically, Mexico is going through a favorable period. There are still problems but the country has improved greatly in terms of infrastructure, not only in Mexico City but in other states. Security remains a concern but that has been compensated by the support of a growing upper class. Having said that, there are still areas of improvement that if addressed would help the ESSC market grow threefold. Stability has been a key factor in helping clients gain more confidence, particularly in the luxury segment. It is true that worries regarding the elections and Mexico’s relationship with the US affected the peso but even then, the country has managed to stay within certain levels of stability. 
Q: How does sales performance compare in each of your brands?

A: Even though both Lamborghini and Aston Martin participate in the same market segment, they are completely different brands. Lamborghini is the exotic and performance-driven end of the market, while Aston Martin is more oriented to style and luxury. Only 30 percent of our clients go for both. In terms of sales, we had very similar results until 2017. However, with the introduction of Urus, we expect to see a much more defined difference after a probable growth of 100 percent in Lamborghini’s sales. We forecast significant growth for Aston Martin as well, but more in the 30 percent range. Maybe when the brand releases its DBX SUV in 2019 or 2020, results will again be similar between Lamborghini and Aston Martin. 
Regarding our Caterham and Morgan brands, they are part of an even more exclusive niche for clients that are looking for something very classic. Although models have evolved in terms of under-the-hood technology, they have remained true to their origins in design. These brands have much more reduced sales than Lamborghini or Aston Martin but even so, both Caterham’s and Morgan’s offices have been surprised to see such acceptance in the Mexican market. 
Q: What are your priorities for Aston Martin in 2018 and what new models are you bringing to the market?

A: Currently, our volumes depend mostly on the DB11. This model was originally launched with a V12 engine and it then moved to a V8 configuration. Now, we are unveiling the DB11 AMR version that goes back to the original V12 engine but adds 300hp of power and a convertible version as well. At the same time, we are launching the new Vantage, which was our most important release in 2018. This model arrived in August 2018 and we presold units. Vantage will become our entry model, allowing us to compete with brands such as Porsche and McLaren. 
By the end of the year we received the first units of the DBS Superleggera, which was unveiled in June 2018 and substitutes our previous Vanquish family. This model is our top-of-the-line unit and a new flagship vehicle for Aston Martin. The car has a carbon fiber body and an engine that delivers 715hp and torque of over 900Nm. With the introduction of DBS Superleggera, the brand marks a specific differentiation between families. This vehicle is Aston Martin’s most radical offering, DB11 is the core of the brand and a more refined alternative, while Vantage is firmly positioned as the sports car of the brand.