Vertu Motors has reported a strong start to its financial year, signaling an upward revision of its full-year profit forecast following increased demand and expanded market share, particularly through the addition of Chinese automotive brands. The Gateshead-based car retailer expects annual profits to exceed £26 million, surpassing earlier market expectations of around £25.5 million, supported by a 4.6% rise in group revenues for the five months ending July.

Sales figures showed an 8.7% increase in new vehicle sales and a 4.4% rise in used car sales during the period. After-sales revenue also contributed positively to overall profit growth. The group has been active in broadening its portfolio, now operating 194 sales and after-sales outlets across the UK, including 18 sites dedicated to Chinese manufacturers such as BYD, MG, Omoda, Jaecoo, and Leapmotor. New outlets for these brands have recently opened in locations including Burton-upon-Trent, Harrogate, and Crewe, with further developments planned, such as a Geely forecourt in Teesside.

Vertu's CEO, Robert Forrester, highlighted ongoing investments in existing dealerships and expansions in regional sites like Morpeth and Hartlepool, where the group is allocating £800,000 for the redevelopment of a BYD dealership. Despite industry challenges, Forrester expressed confidence in the company’s strategic direction, citing operational strength and a proactive approach to adapting the business portfolio to shifts in the sector—especially the rising prominence of Chinese car manufacturers.

The company welcomes the UK Government’s consultation on the Zero Emission Vehicle (ZEV) Mandate, which became law in January 2024 and seeks to phase out new petrol and diesel car sales. While supportive of the transition to electric vehicles, Vertu has raised concerns about the mandate's prescriptive targets, particularly the proposed 50% to 80% battery electric vehicle (BEV) sales goals for 2030, which some industry participants consider misaligned with current market demand. Forrester emphasized the need for a pragmatic approach to the transition that better reflects consumer preferences and market conditions.

Vertu has recently undertaken measures to improve operational efficiency, including the closure of a loss-making Mazda outlet in York and the consolidation of its Sheffield Mazda operation with its Nissan business. The group remains the fourth-largest automotive retailer in the UK, trailing behind Sytner, Lithia UK, and Arnold Clark Automobiles.

While recent geopolitical tensions, including the conflict in Iran, and potential disruptions related to Jaguar Land Rover were flagged in earlier statements as risks to pricing and demand, the company’s expanded footprint in the Chinese automotive sector and steady growth in electric vehicle sales—reflecting the UK's best July performance since 2019—have supported its positive outlook for the current year.