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McLaren’s Strategic Shift: Less Volume, Higher Profit, and a Potential SUV on the Horizon

Carl Smith by Carl Smith
December 4, 2024
in Latest News
Reading Time: 2 mins read
0
McLaren’s Strategic Shift: Less Volume, Higher Profit, and a Potential SUV on the Horizon

In the high-stakes world of supercars, the name of the game is exclusivity and staggering price tags. McLaren, known for its breathtaking performance cars, is no stranger to this, with the average price of its vehicles now reaching around £240,000, or approximately $312,000. This revealing figure was shared by McLaren CEO Michael Leiters in a recent interview with Automotive News Europe, where he also hinted at an upcoming shift in the company’s strategy to boost profits by focusing on higher-end models and potentially expanding into new segments.

In 2023, McLaren saw strong sales of its more “affordable” Artura, but in 2024, it’s the pricier 750S that’s stealing the spotlight. This model, a successor to the 720S, typically commands between £250,000-£260,000 ($325,000-$338,000). However, McLaren is not planning to simply raise prices without delivering corresponding value. As Leiters put it, “You could increase the pricing, but without the product substance that doesn’t make sense.”

McLaren’s “Ultimate Series” line, which includes hypercars like the Solus GT, Speedtail, Senna, and Elva, offers the brand “a lot of space above the 750S.” The eagerly anticipated successor to the P1, codenamed “P18,” is set to make a splash in 2026 with a rumored 1,000-horsepower V-8 engine and an expected price tag around $2 million.

McLaren’s strategy is shifting away from chasing high sales volumes and instead focusing on creating scarcity and exclusivity, a move that echoes Ferrari’s successful approach. For the 750S, production will be driven exclusively by customer orders, with no excess stock sitting at dealers, particularly in the United States.

Interestingly, McLaren is now considering expanding its lineup to include a 2+2 model or even an SUV—a stark departure from its previous stance against SUVs. Given the massive investment required for such a project, McLaren is in talks with several automakers about potentially adapting an existing platform, with negotiations described as “very promising.”

If McLaren does go down the SUV route, it will join the ranks of Aston Martin, Bentley, Lamborghini, Rolls-Royce, and Ferrari, all of which have successfully entered the luxury SUV market. However, McLaren’s foray into this segment would be a significant shift for the brand, one that could further elevate its profitability while maintaining its commitment to high-performance excellence.

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