In a recent announcement, Porsche has confirmed the upcoming closure of its showroom in Shijingshan, Beijing, and plans to reduce its sales network in China from the current 150 outlets to around 80 by the end of 2026. This adjustment comes amidst a 26% year-on-year drop in sales volume and a sharp 99% decline in operating profit for the brand in China.
According to a report by the Beijing Business Daily, sales consultants at the Porsche Center in Shijingshan, Beijing have confirmed that the showroom will be closing next year. The current selling price for the all-electric model Taycan at this store has been reduced to just over seven hundred thousand yuan, equivalent to a 25% discount.
Porsche China has responded by stating that this is part of a strategic adjustment in the retail network in the Beijing region, with after-sales service set to continue. In October of this year, the Porsche Center in Chaoyang, Beijing opened, merging two outlets to become the first directly operated store in Beijing.
CEO of Porsche China, Pan Lichi, revealed that by the end of this year, the number of sales points will be reduced from 150 to 120, with further adjustments to around 80 by the end of 2026, focusing on ensuring coverage in core cities and provinces. This means that Porsche will be closing nearly half of its outlets in China in just two years.
Such a large-scale network contraction is uncommon among luxury car brands and reflects the pressure the brand is facing in the Chinese market.
Performance data confirms Porsche’s dilemma. In the first three quarters of 2025, Porsche’s sales volume in China was only 32,200 units, a 26% year-on-year plummet, nearly two-thirds lower than the peak of 95,000 units in 2021.
The profit situation is even more severe. Operating profit for Porsche in the first three quarters was only 40 million euros, a drastic 99% year-on-year decline, with the Chinese market cited as one of the core reasons.
Faced with challenges, Porsche is adjusting its strategic direction. Pan Lichi stated that in the face of intense competition, Porsche has decided to slow down its electrification efforts and refocus on fuel models. He emphasized that the competition in electric vehicles primarily focuses on lower-priced segments, while in the high-end niche markets, internal combustion engine models still play a significant role. Based on this assessment, Porsche plans to launch a fuel version of a large SUV positioned above the Cayenne as its next move.
This strategic shift aims to address the current market landscape and the brand’s performance in China, reflecting a keen awareness of the evolving preferences and challenges in the luxury automotive sector in the region.