In mid-February 2025, tech giant Xiaomi proudly announced that its SU7 Ultra all-electric sedan had completed a lap at the Shanghai International Circuit nearly 1.5 seconds faster than the previous record held by the Porsche Taycan Turbo GT. However, Porsche’s crisis in China goes beyond rankings on the racetrack.
Porsche’s Sales in China are Plummeting
According to Porsche’s report in January 2025, their sales in the Chinese market dropped by 28% in 2024, and deliveries of the Taycan model plunged by almost half. This is partly due to the transition phase for models like the Taycan, Panamera, and 911 in 2024. Another significant factor is the shifting preferences of Chinese consumers, who are increasingly favoring domestic car brands that are gaining strength.
Take the Xiaomi SU7 as an example. This electric sedan boasts a design as appealing as the Porsche Taycan, along with superior performance, all at a fraction of the price of its German rival. The record-breaking Shanghai version of the Xiaomi SU7 is priced at $112,000, while the Taycan Turbo GT costs twice as much ($230,000). On top of that, the SU7 Ultra delivers a maximum output of 1,527 horsepower, surpassing the Taycan Turbo GT’s 1,092 horsepower when its Launch Control feature is activated.
Other versions of the Xiaomi SU7 also offer exceptional performance-to-price ratios. This helped Xiaomi sell over 100,000 units of the SU7 in 2024 alone, while Porsche delivered just 21,000 Taycans globally during the same period.
Technology: Porsche’s Weak Spot in China
Porsche vehicles still lack Level 3 or even Level 2 autonomous driving systems. In contrast, the Xiaomi SU7 is already equipped with Lidar sensors, a 56-inch heads-up display, and seamless synchronization with smartphones, thanks to Xiaomi’s expertise in smart devices and artificial intelligence.
In an interview with the New York Times, an industry expert suggested that Western automotive brands have underestimated the importance of software in modern vehicles. They have been slow to adapt, while China has taken the lead.
This lag can partly be attributed to the conservative mindset of European carmakers like Porsche and Ferrari, who prioritize their reputations as pure sports car manufacturers over the race for autonomous driving technology. You won’t see Ferrari or Porsche boasting about driverless capabilities the way BYD did with its Yangwang U9 supercar.
However, Chinese customers are more pragmatic. They are less concerned with the pure driving experience and instead seek vehicles with more advanced, intelligent, and convenient technologies. With a relatively young average age of 33 years (as of 2021), Taycan buyers in China are highly likely to switch brands, making Porsche even more vulnerable.
The Electrifying Trio: Honda’s Electric Vehicle Revolution in Southeast Asia
Honda has unveiled an exciting roadmap for its electric vehicle journey in Southeast Asia. The automotive giant has announced plans to introduce three electric vehicle models to the region by 2027, marking a significant step forward in its commitment to sustainability and innovation. This news underscores Honda’s dedication to bringing its cutting-edge, environmentally conscious vehicles to the diverse and vibrant markets of Southeast Asia.
Electric Cars Exempt from Registration Fees Until 2027
The government has extended the period for a 100% exemption on registration fees for electric cars by two years, until February 28, 2027. This is fantastic news for environmentally conscious consumers and a significant step forward in encouraging the adoption of electric vehicles.
The Electric Car Revolution: Unveiling the New Registration Fee for Electric Vehicles in Vietnam, Effective March 1, 2025
The rising on-road costs will impact electric car sales in the Vietnamese market in the coming months.
The Electric Car Revolution: Unveiling the New Registration Fee for Electric Vehicles in Vietnam, Effective March 1, 2025
The rising costs of electric vehicles and their associated running costs will impact sales in the Vietnamese market in the coming months.
VCCI Recommends: Maintain the 0% Registration Fee for Electric Cars to Boost Sustainability
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The Vietnam Chamber of Commerce and Industry (VCCI) strongly advocates for the continuation of the 0% registration fee for electric vehicles, believing it to offer a plethora of advantages.
