In 2024, Porsche delivered 310,718 vehicles globally, marking a 3% year-on-year decline. The primary driver behind this drop was a 28% plunge in sales in China, contributing significantly to the company's global performance slump.
As a fully imported brand in China, Porsche faces challenges in a market that has seen a seven-year decline in imported vehicle sales. By 2024, the number of imported cars had fallen to 700,000—a 12% drop compared to the previous year. Luxury brands such as Porsche and Lexus were hit hardest, while domestic Chinese brands continued to show strong growth.
Sales Decline Limited to China
Of Porsche’s five major global markets, China was the only one to experience a sales decline. In 2024, sales in the country dropped by 28% to 56,887 units—a decline so severe it offset gains made in the brand’s other markets.
China’s struggles have become a persistent issue for Porsche, with 2024 marking the third consecutive year of declining sales. The drop was larger than that of competitors such as Toyota and Volkswagen, underscoring the severity of Porsche’s challenges in the region.
Challenges in the Chinese Market
Despite aggressive price cuts, Porsche’s sales continued to decline. Discounts for the all-electric Taycan reached as high as 35%, while popular models like the 718 and 911 were offered at over 10% off. However, these measures failed to reignite demand.
In May 2024, poor sales of Porsche’s electric models led to sudden price hikes, further straining relations between Porsche China and its dealers. Tensions escalated as dealerships were forced to stockpile unsold inventory, and several physical stores closed their doors during the year. Porsche even canceled key customer engagement initiatives, such as its annual ice and snow test drive event, along with traditional New Year gifts for customers.
Why Porsche is Struggling in China
Porsche attributes its declining sales to broader economic conditions and the high import taxes imposed on luxury vehicles. However, even with a 30% price reduction, the Taycan’s poor performance suggests that pricing may not be the main issue. Instead, the rapid rise of competitive Chinese brands appears to be reshaping the market landscape.
Companies like BYD Yangwang have successfully entered the ultra-luxury market with offerings like the Yangwang U8 SUV and U9 sports car, providing premium alternatives to brands like Porsche. In the mainstream segment, models such as the AITO M9 and Li L9 offer comparable features at more competitive prices.
（Yangwang U8）
Chinese EVs have also narrowed the performance gap with traditional luxury brands. Some high-performance models, priced at just 30% of a Porsche 911, now deliver acceleration times comparable to or better than Porsche's iconic sports car—all without the high fuel and maintenance costs.
（As a result, Chinese consumers don't think Porsche is worth buying anymore, and high-performance trams such as the ZEEKR 001, Xiaomi SU7, and Tesla Model 3 are rapidly rising to replace Porsche.
Porsche’s Strategy for Recovery
To regain traction, Porsche is restructuring its dealership network in China. According to Rex Pan, President and CEO of Porsche China, the company plans to reduce its 130 dealerships to around 100 by the end of 2026.
In tandem, Porsche is ramping up its electrification efforts. The electric Macan made its debut at the Beijing Auto Show in 2024, and an electric version of the 718 is scheduled for release in 2025. These moves aim to align Porsche with China’s evolving automotive market.
（Macan EV）
While these strategies signal a strong commitment to transformation, the road ahead remains challenging. The market will be closely watching to see if Porsche can successfully navigate these hurdles and reclaim its foothold in China.
Senior Writer The quest for automotive knowledge began as soon as the earliest memories. Various sources information, even questionable ones, have been explored including video games, television, magazines, or even internet forums. Still stuck in that rabbit hole.
