McLaren to develop an SUV and expand in Asia: Rumour or reality?
There are two fundamental ways to increase profitability in any business. Either grow your product/service portfolio or expand your reach to newer and bigger markets. Most companies in the automotive sector seem to have opted the first option. But, most companies are also developing the same product - SUVs. Fortunately, we have a company which prefers the second option.
Luxury sports car manufacturer McLaren Automotive have come out addressing their future plans which involves a potential public offering. But to achieve the required profitability for the same, the carmaker looks set to invest heavily in Asia as well as its upcoming batch of new-gen hybrid cars.
In a recent meeting with reporters in Detroit, Mike Flewitt, McLaren CEO, said, "We need to put more cars into Asia". According to the Flewitt, McLaren is planning to set up shop in Vietnam as well as the Philippines. He further added, "the next big ones are India and Russia. We're not in either and probably should be".
The CEO estimates this year's sales chart to reflect lower numbers when compared to the firm's 4,800 unit sale last year. However, those tables might soon turn around for McLaren when they unveil their brand new architecture frame along with its upcoming batch of hybrids. With these new products in place and a projected increase in production capacity, Flewitt believes the firm to hit a sales target of 6,000 units a year by 2024
If you're wondering whether McLaren will be the latest in line to join the SUV bandwagon, I'm glad to inform you, they aren't. "We couldn't afford to do it," Flewitt said, adding, "it just doesn't fit the brand. And I respect McLaren for this. For sticking to their history and legacy of producing the fastest sportscars. Unlike, Ferrari or Lamborghini, who succumbed to the needs and greeds of Wall Street.
Following the pack isn't what McLaren is interested in doing. Their stand on SUVs substantiates that directly. The same can be said about their views on the production of EVs, which currently stands at - not interested.
"Nobody is out there making money with electric cars," claims Flewitt. Although the inevitable might mean electric cars are the future, but until it becomes lighter, range-efficient and cost-effective, McLaren doesn't seem too bothered about it. "We can do what we need to do with hybrids" he further added.