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Western automakers have enjoyed success in the populous market for years, but the party may be coming to an end as the rise of domestic car manufacturers has made the luxury car market share increasingly challenging.
Porsche is a prime example of this shift. In 2024, the German brand sold approximately 79,283 vehicles in China, a 28% decrease compared to the previous year. The first quarter of 2025 saw an even more dismal performance, with sales plummeting by 42% to 9,471 units.
It’s not that the 911 models have lost their appeal, but rather, the Taycan and Macan EV are struggling against local competitors. China is now flooded with affordable electric vehicles, and domestic manufacturers are also bringing their own electric sports cars to the market at more attractive price points than Porsche’s offerings.
Instead of engaging in a price war, Porsche seems to be considering a strategic retreat. At the 2025 Shanghai Auto Show, Porsche CEO Oliver Blume suggested that the company might discontinue its electric car line in China altogether.
“We will observe the next two to three years to decide whether Porsche electric cars should continue to be present in China,” said Blume.
Both Porsche and its parent company, Volkswagen, have emphasized that they will not compromise on pricing to boost sales, opting to maintain prices that are “worthy of the Porsche name.” As a result, the upcoming Cayenne EV, set to launch later this year, and the electric successor to the 718 will likely carry substantial price tags.
During the event, Blume also dismissed Xiaomi and its SU7 Ultra as non-competitors to Porsche, stating that a low-cost EV cannot match the driving experience of a premium vehicle.
Currently, the top-of-the-line Xiaomi SU7 Ultra hovers around $73,000, while the base model Porsche Taycan starts at a staggering $126,000.
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“Porsche Considers Pulling Out of the Chinese EV Market: Can’t Compete with Local Brands”
At the 2025 Shanghai Auto Show, Porsche CEO Oliver Blume hinted at the possibility of pulling out of the electric vehicle market in China.
