(MENAFN) Aston Martin, the renowned British luxury automaker, saw its shares tumble 6% on Monday following a fresh earnings warning that painted a stark picture of the sector’s challenges and mounting tariff uncertainties.

In a statement, the company projected a decline in its 2025 wholesale volumes by a “mid-high single-digit percentage” from last year’s 6,030 units, signaling a contraction in sales. The firm also revealed it has launched an immediate review of future costs and capital spending, while withdrawing expectations of generating positive free cash flow in the latter half of 2025.

Market analysts had forecasted an EBIT loss of £110 million ($147.8 million) for the year, a figure Aston Martin’s own estimates now align with.

“The global macroeconomic environment facing the industry remains challenging,” Aston Martin declared.

The company highlighted multiple external pressures: “This includes uncertainties over the economic impact from US tariffs and the implementation of the quota mechanism, changes to China's ultra-luxury car taxes, and the increased potential for supply chain pressures, particularly following the recent cyber incident at a major UK automotive manufacturer.”

Further complicating the outlook, Aston Martin noted that the US tariff quota system imposed on UK automakers restricts its ability to deliver precise year-end projections and may even disrupt quarterly forecasts starting in 2026.

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