How Does Mclaren Automotive Make a Profit

how does mclaren automotive make a profit

McLaren Automotive is a British manufacturer of high-performance sports cars and supercars.

Founded in 1963 by Bruce McLaren, the company has a rich history of success in motorsports and has since transitioned into producing luxury road cars.

In this blog post, we will explore how McLaren Automotive makes money and the various revenue streams that contribute to the company’s success.

  1. Selling Cars

The most obvious source of revenue for McLaren Automotive is selling cars.

The company offers a range of models, including the 570S, 720S, GT, and the recently launched Artura.

These cars are designed and manufactured in-house at the McLaren Technology Centre in Woking, Surrey, and sold through a global network of dealerships.

McLaren is known for its focus on lightweight materials and advanced engineering, resulting in high-performance vehicles that command a premium price.

According to Autocar, the average selling price of a McLaren in the UK is around £180,000 ($248,000), with some models costing over £1 million ($1.3 million).

In 2020, McLaren sold 4,662 cars globally, a slight decrease from the previous year. However, the company reported record profits, thanks in part to its focus on higher-margin models such as the GT and 720S.

  1. Personalization and Bespoke Options

McLaren Automotive offers a range of personalization options for its customers, allowing them to create bespoke versions of their chosen model.

These options can include unique paint colors, custom interior materials, and even one-off designs.

The company’s MSO (McLaren Special Operations) division handles these requests and offers a range of pre-designed packages for customers to choose from.

According to McLaren, around 20% of its customers take advantage of these personalization options, with some adding as much as 30% to the cost of their car.

  1. Racing and Motorsports

While McLaren Automotive is separate from the McLaren Formula 1 team, the company’s success on the racetrack has undoubtedly contributed to its brand image and reputation.

The company’s founder, Bruce McLaren, was a successful racing driver and engineer, and the team has won multiple championships in various motorsports categories over the years.

Today, McLaren Automotive maintains its connection to motorsports through its customer racing program.

The company produces race-ready versions of its cars, such as the 720S GT3 and the 570S GT4, which customers can purchase and enter into various racing events around the world.

  1. Licensing and Merchandising

Like many luxury brands, McLaren Automotive also generates revenue through licensing and merchandising.

The company has a range of licensed products available, including apparel, accessories, and collectibles.

In addition, McLaren operates its own retail stores, called McLaren Brand Centers, in key locations around the world.

These stores offer a range of branded merchandise and provide an opportunity for customers to engage with the brand beyond purchasing a car.

  1. Technology and Engineering Services

Finally, McLaren Automotive also generates revenue through its technology and engineering services division.

This arm of the company provides consultancy services to other companies in the automotive, aerospace, and defense sectors, using the expertise and technology developed through its work in motorsports and car production.

According to McLaren, this division has worked with over 20 companies to date, providing everything from software solutions to advanced materials research.

In 2020, the division reported revenues of £267 million ($367 million), accounting for around 25% of the company’s total revenue.

McLaren has built a successful and sustainable business model that allows it to remain competitive in the luxury automotive market.

One of the key factors in McLaren’s success is its focus on innovation and technology.

Research and Development

The company invests heavily in research and development to stay ahead of its competitors and to continually improve the performance and design of its cars.

For example, the recently launched Artura model features a new hybrid powertrain that combines a V6 engine with an electric motor, providing both high performance and improved fuel efficiency.

In addition, McLaren is committed to sustainability and reducing its environmental impact.

The company has introduced a range of initiatives to improve its sustainability, including the use of recycled and sustainable materials in its cars and reducing the carbon footprint of its manufacturing operations.

Another important aspect of McLaren’s success is its marketing strategy.

The company has built a strong brand image around its history in motorsports and its focus on high-performance engineering.

This has helped to establish McLaren as a leading luxury brand and to attract customers who value innovation, technology, and exclusivity.


In conclusion, McLaren Automotive generates revenue through a range of sources, including car sales, personalization options, racing and motorsports, licensing and merchandising, and technology and engineering services.

By diversifying its revenue streams and leveraging its expertise in advanced engineering and materials

Overall, McLaren Automotive’s business model is built on a foundation of innovation, technology, and a commitment to quality and performance.

By diversifying its revenue streams and leveraging its expertise in multiple areas, the company has built a successful and sustainable business that is well-positioned for future growth and success.