Aston Martin announces £500m Japanese trade and investment deal

The luxury car maker says more exports to Japan and a new overseas office will directly benefit its UK plants

Aston Martin plans to spread its wings to the far East with a new office in Tokyo (REUTERS)

Aston Martin has announced a £500m trade and investment deal between the UK and Japan, which will see the luxury car brand step up its exports to the Asian country and expand its dealership network there.

In an announcement coinciding with Prime Minister Theresa May’s visit to the country, Andy Palmer, the company’s chief executive officer, said on Thursday that the deal would directly benefit the Gaydon plant in West Midlands and the St Athan plant in Wales.

“As the world’s second largest luxury car market, Japan is key to our future plans,” he said.

“We have long enjoyed a loyal following from Japanese customers and the public alike, with our new dealership in Tokyo set to become our largest worldwide by volume,” he added.

Ms May in a statement, said that, as Britain prepares for its exit from the EU, it is “vital” for the country to “build on our existing ties with friends and allies”.

“Aston Martin is a prime example of the innovative and world leading firms the UK is proud of,” she said.

As part of its expansion, Aston Martin said that it plans to open a product planning office in Tokyo to develop insights into luxury customer behaviour in the region.

Mr Palmer said that the group would also use the new facilities to “tap into research and technologies in the electric and connected car areas as well as the innovations Japan is making in the luxury market”.

Aston Martin currently exports four sports cars to Japan including the new DB11 model.

In late 2019, the company plans to introduce a sports utility vehicle into the market, built at the company’s second manufacturing facility at St Athan in Wales.

More than 80 per cent of Aston Martin production is currently exported and the group said that this figure will increase over the coming years, with sales particularly growing in the US and Asia.

The trade deal with Japan will also see the company buy more than £70m in components from Japanese suppliers including Bridgestone, Denso, Mitsubishi and Yazaki.