This news comes on the back of declining Porsche sales in the Chinese market. In 2023, sales dropped by 15%, with a total of 79,283 cars sold in China. This downward trend not only persisted into 2024 but accelerated, with a 29% sales decline in the first nine months.
China used to be Porsche’s golden goose, ranking as its largest market for eight consecutive years and accounting for over 30% of the brand’s total sales. Going back to 2009, Porsche chose Shanghai for the launch of its new Panamera sedan, a departure from the brand’s traditional sports cars and a deliberate attempt to gain traction in the Chinese market.
Through the Panamera, Cayenne, and Macan, the German brand established a strong foothold in China. Today, Porsche dealers can no longer ignore the price war in the Chinese market.
Reports indicate that some Porsche models have been discounted by 30-35% at dealerships. The difficulty in moving Porsche vehicles off the showroom floor has led to discontent among dealers.
Currently, there are 138 official Porsche Centers in China. According to Alexander Pollich, President and CEO of Porsche China, this number will decrease to around 100 by the end of 2026.
Porsche’s so-called optimization involves investing in dealerships in major cities like Shanghai and Beijing. This will see the continued rollout of the Porsche Destination concept, currently present in 35% of the network, up from 20% in 2022, transforming traditional dealerships into luxurious experience centers.
The brand is expanding its online sales network and presence. A new feature, “Track Your Dream,” available on the Porsche app and WeChat Mini program, allows buyers to track information about the production and delivery of their cars in real time.
Part of Porsche’s challenge in China stems from the difficulties faced by electric vehicle brands. Porsche aims to increase its electric vehicle market share to 80% by 2030.
Porsche’s downturn is symptomatic of the shifts occurring in the Chinese market. There has been a general move towards new energy vehicles, BEVs, and PHEVs, and a shift from foreign to domestic Chinese manufacturers. In the first ten months of 2024, imported car sales dropped by 14.3% year-on-year.
Dealers are also feeling the pinch. In the first half of 2024, nearly 2,000 dealerships closed, almost matching the figure for the whole of 2023. In the past four years, 8,000 dealerships have shut their doors.
The Top 10 Auto Brands for 2025: How Subaru Outperformed BMW and Lexus
Besides Subaru, six other Asian car brands made it to the top 10.
The Ultimate Electric Car Showdown: Will Porsche and Audi’s Dreams Be Derailed?
Last month, Northvolt, the Swedish battery manufacturer, filed for bankruptcy to preserve its finances and settle outstanding debts. The factory is expected to cease operations from January 2025.
The High-Roller: Woman Spends a Whopping 35 Billion VND on 196 Parking Spots in a Residential Complex
The parking dispute at a Chinese apartment complex has sparked a heated online debate.
The Urban SUV – A Head Start for the ‘Rookie’
The automotive industry has witnessed the launch of two stellar vehicles: the Mitsubishi Xforce and the Toyota Yaris Cross. These SUVs have taken the urban market by storm, quickly rising to the top of their segment.
The Parking Lot Queen: How One Woman Turned a $1.5 Million Investment into a $3 Million Windfall
The parking conflict at a Chinese apartment complex has sparked a heated debate online.
