Porsche has announced a drop in deliveries to Chinese customers by more than a quarter. The German sports car manufacturer delivered 56,887 vehicles to China last year, 28 percent less than in 2023. Despite growth in other regions, Porsche's total deliveries fell by 3 percent to 310,718 vehicles, the company announced on Monday.
Declining sales in China hit Porsche and its parent company Volkswagen at a critical phase. VW struggles with weak demand in Europe and disappointing sales of electric vehicles, which are pressured by cheaper Chinese models like BYD, Xpeng, and Geely. China's automotive market grew by 5.5 percent in 2024 to nearly 23 million new vehicles, but VW could not benefit from this. Deliveries of the core Volkswagen brand in China fell by 8.3 percent, which VW attributed to "intense competition.
The decline in sales in China also highlights the challenges for Porsche's double CEO Oliver Blume, who leads both the sports car manufacturer and the VW Group. Internally, there are reportedly concerns about the decision to introduce a fully electric version of the Macan SUV, while the combustion engine variant has already been withdrawn in some markets. Macan sales fell by 5 percent in 2024.
In the face of growing competition, Porsche has reiterated that it will not engage in a price war in China. The company emphasized that it will continue to focus on margins instead of mere sales figures and will adhere to its "value-based sales strategy.
Difficulties in China come at a time when VW shareholders are increasingly concerned. In December, the Porsche-Piëch family, VW's majority shareholder, warned it might write down the value of its stake by as much as 40 percent – a potential loss of up to 20 billion euros.
