Porsche AG, a well-known German sports car manufacturer, announced on Tuesday (April 8th) that their sales in China dropped by a staggering 42% in the first quarter, setting a new record low since 2022.
On April 8th, Porsche released the global car delivery data for the first quarter of 2025. The data revealed that in the first quarter of 2025, Porsche delivered 71,470 new cars globally, an 8% decrease compared to the previous year. In the Chinese market, Porsche delivered 9,471 vehicles, a 42% decrease year-on-year; while in their home market in Germany, the delivery volume was 7,495 vehicles, a 34% decrease year-on-year; overall in Europe, the delivery volume dropped by 10%. The North American market showed a better performance with a 37% increase in delivery volume, reaching 20,698 vehicles.
China was once Porsche’s “largest single sales market globally,” maintaining this leading position for six consecutive years. Chinese customers were an essential market pillar for Porsche.
However, by 2022, Porsche’s delivery volume in the Chinese market had started to decline continuously. According to the latest data, Porsche delivered 79,300 vehicles in China in 2023, a 15% decrease year-on-year; in 2024, the delivery volume was 56,900 vehicles, a 28% decrease year-on-year. The first-quarter delivery volume this year dropped by 42%, setting a new record low since 2022. The Chinese market has dropped from Porsche’s largest global market to the third.
Why is Porsche showing a continuous decline in China? “Zhineng Auto” pointed out in an article in “Wall Street View” that the reasons for Porsche’s declining delivery volume in China mainly include:
Market environment changes: As Chinese consumers’ interest in new energy vehicles grows, and local brands rise in the luxury market, the overall market for imported luxury brands is shrinking.
Decrease in product attractiveness: Porsche stands out in the sports car field, but facing fierce competition in the luxury SUV and electric vehicle market, its product updates and technological upgrades appear to lag behind.
Dealer conflicts: Excessive inventory pressure forces dealers to discount heavily, severely affecting brand value and profitability. The terminal sale prices of models like Taycan and Panamera are significantly lower than the official guidance prices, further undermining consumers’ trust in the brand.
In summary, Porsche faces multiple challenges in the Chinese market, with the core issue lying in the mismatch between the speed of product and technological innovation and the rapidly changing market demands.
Similar to Porsche, other imported brand automobile manufacturers are also facing ongoing challenges in sales in China. German car manufacturer Mercedes-Benz previously stated that due to the decrease in demand in China and Europe, sedan and truck sales decreased by 7% in the first quarter of this year. According to Caixin, prices for BMW 5 Series have fallen below the “historical low” of 290,000 yuan.
Data from the China Association of Automobile Manufacturers shows that in January-February 2025, China imported 56,000 vehicles, a 46% decrease year-on-year, with imported cars facing significant shrinkage pressure, particularly for ultra-luxury cars which decreased by 31% in January-February. Whether Porsche and other imported automobile brands can reverse this downward trend in the future is worth keeping an eye on.