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McLaren to make performance SUV, and it won’t be electric

Compiled by ADME Newsroom from 1 source

First reported by CarExpert · 17 September at 9:30 am

Who's covering this — 1 article

Motoring press: 1

Image: CarExpert

The quick read

McLaren is producing its first-ever SUV, which will not be electric.
The new SUV will be designed and engineered in a way that is consistent with McLaren's brand values.
The decision to produce a non-electric SUV is a bet on ongoing demand for high-performance internal combustion engines.
The new SUV will likely be positioned as a high-end offering with a premium price point.

For dealers: McLaren's new SUV will provide a unique sales opportunity for Australian dealers, particularly those who can effectively communicate the value proposition of this high-performance vehicle to potential buyers.

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

McLaren's decision to produce a performance SUV that won't be electric is a clear bet on the ongoing demand for high-performance internal combustion engines, which will likely resonate with Australian buyers who still prefer traditional powertrains.

This move by McLaren will put pressure on other luxury brands to reassess their own SUV strategies, particularly those that have focused heavily on electrification, such as Tesla and Audi.

Competitor Response

The fact that McLaren is choosing to enter the SUV market with a non-electric model suggests that the brand is confident in its ability to deliver a unique driving experience that justifies the investment in traditional engine technology.

This confidence is likely to be reflected in the pricing and margin strategy for the new SUV, with McLaren potentially targeting a premium position in the market to justify the costs of development and production.

Pricing and Margin

As a result, Australian dealers can expect the McLaren SUV to be positioned as a high-end offering, with a price point to match, which will likely limit its appeal to a niche segment of the market.

However, this niche segment is likely to be highly profitable, with buyers willing to pay a premium for the unique combination of performance and luxury that McLaren is known for.

Actionable Insights

This week, Australian dealers can start to think about how they will position the McLaren SUV in their showrooms, and how they will communicate the value proposition of this unique vehicle to potential buyers, in order to maximize sales and margin.

Go deeper — ADME analysis