Amid revised annual guidance, weaker sales in China and new supply chain headaches, shares in Aston Martin Lagonda took a 20% hit on Monday, falling to £1.28.

The Warwickshire based car maker, which recently unveiled a limited-edition V-12 Valiant priced at £2m, said that its profits will be lower than originally anticipated this year after it revised its global projection of units sold downward by 1,000.

Aston Martin's travails were meanwhile mirrored at the more affordable end of the scale by Stellantis, the autogiant whose portfolio of a dozen familiar badges includes Peugeot, Citroen, Fiat, Chrysler and Jeep.

Weakening sales demand and an increasing price squeeze set by ultra-competitive Chinese carmakers are setting a scene for widespread difficulty in Europe's auto sector and with Aston Martin's focus on niche, premium and low-volume models, a fifth of its 6,620 model output last year went to the Asia-Pacific market.

But China's home market is in turn being suppressed by a slowing of the nation's economy. Additionally, Aston Martin's reliance on a crucial network of suppliers for componentry is also under strain, all of which combined to set the more modest output forecast.

Appointed to the role just a few weeks ago, Adrian Hallmark, Aston Martin chief executive, said: "Having been with the Company for a month I am even more convinced than before in its growth potential. The team at Aston Martin has done an exceptional job in launching a fully reinvigorated core range of vehicles over the last 18 months.

"Near perfect execution was required to meet the Company's ambitious 2024 plan. However, it has become clear that we need to take decisive action to adjust our production volumes for 2024 given a combination of supplier disruption, the weak macroeconomic environment in China and a proactive decision to strategically re-align our production plans to optimise efficiency and achieve a more balanced delivery cadence in the future."

Lawrence Stroll, Executive Chairman, added: "When the Yew Tree Consortium made its significant investment in Aston Martin in 2020, we did this with a long-term view of the necessary commitment and turnaround required to unlock the enormous value potential of this iconic brand. I remain steadfast in this view and now, with the calibre and experience Adrian Hallmark brings, I am extremely confident in the Company's ability to realise the full potential of its ultra-luxury high performance strategy."

With Aston Martin joining the ranks of BMW, VW and Mercedes-Benz in issuing a profit warning, Stellantis also did the same – triggering a 15% share price drop after it said operating profit margins would be 5.5% to 7%, rather than the originally forecast "double digit" figure. Stellantis also said free cash flow would be negative, from £4.2bn to £8.4bn.

In a statement, the Group said: "The company will continue to leverage and expand its competitive differentiators and believes that the recovery actions being put in place will ensure stronger operational and financial performance in 2025 and beyond."

● Aston Martin is represented in Gloucestershire by HR Owen on Chetenham's Rutherford Way; Stellantis opened a dedicated cross-brand Stellantis&You showroom in Cribbs Causeway, Bristol, on July 1.