McLaren enters luxury SUV segment with massive expansion plan funded by Abu Dhabi capital
Massive expansion: New factory, in-house engines and transmissions. McLaren Automotive has confirmed a massive £500 million investment plan for its UK manufacturing and engineering operations. The move marks a historic shift for the Woking-based manufacturer, which will expand its industrial capabilities by building a second assembly plant in the UK alongside its existing manufacturing centre.
The investment package includes, for the first time in the brand's history, the development and internal production of its own hybrid engines and gearboxes, gradually phasing out third-party suppliers. The industrial expansion project is estimated to generate over 1,000 direct and indirect jobs by 2032, to which several thousand more jobs will be created along the supply chain.
Financial support from Abu Dhabi and streamlining of operations
The investment program follows the deep restructuring initiated last year, following the takeover of McLaren by Abu Dhabi-based CYVN Holdings and sovereign wealth fund L'IMAD, which committed to allocating a total capital of £1.5 billion over the next five years.
To protect the residual value of the cars and eliminate price cuts that were affecting profitability, McLaren management radically changed its commercial strategy. The company eliminated one of the two production shifts at the Woking plant and switched to a rigorous production model based exclusively on firm orders. As a result of this readjustment, the volume of deliveries temporarily decreased from around 3,300 units in 2024 to around 2,000 cars in 2025, but created the conditions for significantly higher profit margins.
The first McLaren SUV and portfolio diversification
The long-term sustainable growth strategy includes entering entirely new market segments. The centerpiece of this offensive is the development of the first high-performance SUV in McLaren's history, a model expected to be on the market before 2030.
The new SUV will use a hybrid powertrain and an advanced architecture that will allow for the development of other front-engine luxury models. By launching this large model, McLaren aims to attract new customers, substantially increase global sales volumes and reach the level of profitability of rivals in the supercar and ultra-luxury vehicle segments.