To say that Porsche is struggling in China would be an understatement. Sales in 2024 fell 28 percent to 56,887 cars. During September this year, the decline continued, with shipments dropping by another 26 percent. Looking ahead, Zuffenhausen has a plan he calls “returning the winning chain”, although he admits that a return to previous sales volumes is unrealistic.
In an interview with a German business newspaper Automobile VochePorsche China CEO Alexander Polch optimistically admits that competition is fierce and that “the pace of innovation in China is slowing down.” The Technic has been successful at launch, he recalls, but now there’s “a credible deluge of electric sedans in the full-price segment.”
‘The pace of innovation in China is breathtaking, as is the variety of products on offer, and pricing and marketing strategies seem to change on a daily basis. Suddenly, you are faced with many market participants. And cars appeal to consumer tastes, let’s be honest. But we are rising to the challenge. ‘
Sales have been buoyed not only by the arrival of low-cost EVs, but also by a lower luxury tax threshold. Since 2016, it has been 1.3 million yuan (184,000)), but from July 20 this year, it was reduced to 900,000 yuan (7,127,000). This change affected business, making cars even more expensive and out of reach. The average net list price of a new Porsche in China is less than 1 million yuan (1,141,000).
2026 Porsche Cayenne Electric
Photo by: Porsche
As a result, Porsche is scaling back. From 150 sales outlets in 2024, it has reduced to 120 now. By the end of next year, it will have just 80 brick-and-mortar dealerships. Rest of the stores are eagerly waiting for the newly announced combustion engine SUV. The luxury automaker has confirmed plans to replace the original Macan with a new gas-fueled model. Also, the three-row vehicle, which was supposed to be exclusively electric, will launch first with combustion engines.
EVS will still play its role under the “Winning China” strategy. The Cayenne Electric will be launched locally. The 718 EV is also coming and is claimed to be “unique in China in terms of its sportiness.” Polch didn’t elaborate on what that means, but it’s worth noting that the next Boxster and Cayman will still offer gas engines, albeit only for the range-topping versions.
Porsche’s head honcho in China warned of a “challenging” 2026, which is not surprising. The new gas-powered SUV mentioned earlier won’t arrive until later this decade. Meanwhile, reviving sales through a spin-off brand, such as Audi’s confusing name, Colorless Audi, is not in the cards. Polch did not rule it out entirely but clarified that there are currently no plans for a second Porsche brand.
” width=”16″ height=”9″ loading=”lazy”/>
2026 Porsche Cayenne Electric
Photo by: Porsche
Citing high costs, the company’s local boss also refused to ship semi-squad-down (SKD) or fully knocked-down (CKD) kits to China for local assembly.
Porsche is not an exception, as its main rivals are also struggling in the world’s biggest car market. BMW Group (including Mini) fell 13 percent last year, Mercedes fell seven percent, and Audi fell 10.9 percent. This is the new harsh reality of a highly competitive market fueled by the rise of local automakers. China has caught up with the legacy players, and their pricing is unbeatable, especially in the EV segment.
In Porsche’s case, a heavy lean on electric vehicles certainly hasn’t helped, but renewed interest in combustion engines may work in its favor.
Source:
Automobile Voucher (subscription required)
