China’s economy continues to decline, with a downgrading in consumption leading to a significant decrease in luxury car sales. In the first three quarters, the Chinese sales of the German luxury car brand Porsche dropped by nearly 30% compared to the previous year. Reports have surfaced indicating that the promotional price for the 2024 model Macan 2.0T from Porsche has been slashed by 40%, causing quite a stir in the market.
According to a report by Sina Tech on October 25th, the manufacturer’s suggested price for the 2024 Porsche Macan 2.0T in China is 578,000 RMB, but some dealers in Shenzhen are offering the base model for as low as 358,000 RMB, which is equivalent to a 40% discount.
After the news spread widely in the media, a reporter from Securities Times contacted Porsche-related stores the same day. The staff confirmed the promotion, stating that the discount was substantial. The quoted price of 358,000 RMB is for the standard version of Macan without any additional features. In addition to cash discounts, there are also gift packages available, and the final price after customization can be discussed in-store. The promotion for Macan is a limited time offer.
On October 26th, a reporter from The Paper contacted several Porsche 4S stores in Shenzhen and Guangdong as a consumer and was informed that there were no similar promotions for the car in question. Some staff members even mentioned that they had never heard of such a low price.
Based on the quotes from the stores, the base price for Macan is above 400,000 RMB, with discounts around slightly more than 30%. The final purchase price typically hovers around 600,000 RMB, with the lowest price starting from the tens of thousands, requiring further discussion at the store.
The Paper noted that the current discount offers at the stores for Porsche, a car brand that used to require additional premiums for purchase, represent a significant price adjustment. Moreover, such price reductions are not uncommon this year.
As one of the most value-retaining car brands, news of “Porsche prices dropping below 400,000 RMB” quickly became a trending topic on Weibo.
Automobile blogger and Weibo influencer “Shanghai Chengyu” commented: “For most 4S stores, base prices are not fixed and vary based on the number of service items included. Selling cars definitely involves a trade-off between sales and costs. Even with incentives, profits can be slim, and including service income (known as gross profit) is crucial to achieving overall success for a 4S store.”
Weibo influencer “Yuan Guoqing” remarked: “Porsche used to be the most popular luxury car brand among Chinese people, but even with price cuts, it is now struggling to make sales.”
Netizens joined the discussion, expressing opinions like “The more luxurious, the worse the situation. Everyone is downgrading their consumption,” “The economic trend has changed; the dream of owning a luxury car seems more distant,” and “The era of having money and being naive is over.”
New knowledge blogger “Wang Zhi Kuitoli” shared: “The reason Porsche has lowered its prices is closely related to the tightening of domestic consumption demand. Many people were able to spend lavishly before because they had real estate as a safety net. As they watch the value of their properties decline, people have become more cautious in their spending. For example, luxury cars are not selling well anymore.”
Official data shows that from January to September this year, Porsche’s global cumulative delivery volume was 226,000 vehicles, down by 7% compared to the same period last year. In China, Porsche delivered around 43,300 vehicles, marking a significant 29% decline. Porsche’s domestic market in Germany saw an 8% growth to 26,800 vehicles. North America experienced a 5% decrease with approximately 61,500 vehicles delivered, while the European market (excluding Germany) had a 1% growth with 52,500 vehicles delivered.
Of note, this is the second consecutive year that Porsche has seen a decline in sales in the Chinese market. In 2023, China was the only market worldwide where Porsche’s sales declined, dropping by 15%. That same year, North America overtook China as Porsche’s largest single market.