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To say Porsche is struggling in China would be an understatement. Sales fell 28 percent to 56,887 cars in 2024. Through September this year, the decline continued, with shipments dropping another 26 percent. Looking ahead, Zuffenhausen has a plan called \u201cWinning Back China,\u201d although it concedes that returning to previous sales volumes is unrealistic.<\/p>\n
In an interview with German business newspaper Automobilwoche<\/em><\/a>, Porsche China CEO Alexander Pollich candidly admitted the competition is fierce and that \u201cthe pace of innovation in China is breathtaking.\u201d He recalls the Taycan being successful at launch, but now \u201cthere is a veritable flood of electric sedans in completely different price segments.\u201d<\/p>\n ‘The pace of innovation in China is breathtaking, as is the variety of products on offer, and price and marketing strategies seem to change on a daily basis. Suddenly, you are faced with a multitude of market participants. And the cars appeal to customers’ tastes, let’s be honest. But we are rising to this challenge.’<\/p>\n<\/blockquote>\n Sales have suffered not only from an influx of lower-priced EVs but also from a lower luxury tax threshold. Since 2016, it stood at 1.3 million yuan ($184,000), but from July 20 this year, it was reduced to 900,000 yuan ($127,000). That change impacted business, making the cars even more expensive and out of reach. The average net list price for a new Porsche<\/a> in China is under 1 million yuan ($141,000).<\/p>\n 2026 Porsche Cayenne Electric<\/p>\n Photo by: Porsche<\/p>\n Consequently, Porsche is scaling back. From 150 sales outlets in 2024, it\u2019s now down to 120. By the end of next year, it\u2019ll have only 80 brick-and-mortar dealerships. The remaining stores are eagerly awaiting the newly announced combustion-engine SUVs. The luxury automaker has confirmed plans to replace the original Macan with a new gas-fueled model<\/a>. In addition, the three-row vehicle, which was supposed to be exclusively electric, will launch first with combustion engines.<\/p>\n EVs will still play a role under the \u201cWinning Back China\u201d strategy. The Cayenne Electric<\/a> will be launched locally. The 718 EV is also coming and is claimed to be \u201cunique in China in terms of its sportiness.\u201d Pollich didn\u2019t elaborate on what that means, but it\u2019s worth noting that the next Boxster and Cayman will still offer gas engines<\/a>, albeit only for the range-topping versions.<\/p>\n Porsche\u2019s head honcho in China warns of a \u201cchallenging\u201d 2026, which isn\u2019t surprising. The new gas-fueled SUVs mentioned earlier won\u2019t arrive until later this decade. Meanwhile, rejuvenating sales through a spin-off brand, such as Audi\u2019s confusingly named, ringless AUDI<\/a>, is not in the cards. Pollich didn\u2019t entirely rule it out but clarified there are currently no plans for a second Porsche brand.<\/p>\n 2026 Porsche Cayenne Electric<\/p>\n Photo by: Porsche<\/p>\n Citing high costs, the company\u2019s local boss also ruled out shipping semi-knocked-down (SKD) or completely-knocked-down (CKD) kits to China for local assembly.<\/p>\n Porsche isn\u2019t an exception, as its main rivals are also struggling in the world\u2019s largest car market. The BMW Group (including MINI) fell 13 percent last year, Mercedes dropped seven percent, and Audi<\/a> was down 10.9 percent. It\u2019s the new harsh reality of an intensely competitive market shaped by the rise of local automakers. China has caught up with legacy players, and their pricing is unbeatable, especially in the EV segment.<\/p>\n In Porsche’s case, leaning heavily on electric vehicles certainly didn\u2019t help, but renewed interest in combustion engines could work in its favor.<\/p>\n Ford CEO: China Can ‘Put Us All Out of Business’ <\/a> Source: Automobilwoche (subscription required)<\/p>\n","protected":false},"excerpt":{"rendered":" To say Porsche is struggling in China would be an understatement. Sales fell 28 percent to 56,887 cars in 2024. 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Tavares: China Is ‘Many Years’ Ahead With EVs, Says EU Politicians Created ‘Dead End’<\/a><\/p>\n