In the Chinese market in 2023, the rich are slowly moving away from Porsche.
This year's Porsche is not selling well in the domestic market. Porsche announced its sales data for the third quarter of this year, among which Porsche's sales in the Chinese market were 4 percent, becoming the only market in the world to decline. Porsche's performance in the first three quarters by market: North America sales were 6450,000 units, a year-on-year increase of 14%;Sales in Europe (excluding Germany) were 5170,000 units, with sales in Germany of 2480,000 units, up 23% and 19%, respectively.
In the Chinese market, a total of 6070,000 units, down 12% y/y. It is hard to imagine that Porsche, which has always been represented by high-end, luxury and sports, can be difficult to sell in the Chinese market. Today, the status quo is that the discount is more than 10 yuan to pick up the car, and it is still not as high as last year's sales. And this wave of discounts did not help the sales growth, but also hurt the old owners of Porsche. Porsche's retention rate in the third quarter has fallen to 8171%, and the retention rate decreased by nearly 3% from the previous quarter. This also means that this wave of new car discounts has had a relatively large impact on the second-hand car system. In a quarter, the Macan has lost 20,000 yuan, the Cayenne has lost 30,000 yuan, and the 911 has lost about 50,000 yuan (all of the above are calculated according to the naked car of each product entry model**).
So, why does Porsche make the rich lose interest in it in 2023?
Combined with the above data, Porsche's sales in the Chinese market this year are indeed not good, and they are still declining. You know, this is a sales figure that was exchanged for a large amount of discounts. As for the data of the discounts of each model, to give a conservative one, the Macan discount more than 120,000 yuan, the Cayenne discount of more than 110,000 yuan, and the Taycan discount more than 100,000 yuan, which are all included after the rotation configuration**.
With these offers, sales are still declining.
So this kind of decline in sales with the premise of discounts, for what reasons are worth analyzing. In the first three quarters of 2022, Porsche sold 68,766 cars in China, a 12% decrease this year, or more than 8,000 cars, becoming the only single market to decline in the first three quarters. The Macan, Cayenne and Panamera are the absolute pillars of Porsche's sales in the Chinese market, with the three models contributing more than 3,000 to 4,000 units per month. The sales of the rest of the Taycan are at the level of 100 units per month.
At present, the problem on the product side is that the Macan is not replaced, and the facelift of the Cayenne and Panamera is far less shocking than when it was launched in China. The former has made consumers aesthetically fatigued, and the latter two are decent and lack of strength.
A product that has been sold for 8 years, under the premise that there is no change in the three major pieces during this period, how much can the consumer's desire to buy still be squeezed?8 years of sales time, for any car products, is a long time, and this period is almost the time to replace, the general fuel car products are 5-7 years a major replacement, but Porsche Macan is expected to be possible next year.
And such a car happens to be one of the pillars of Porsche's sales.
SUVs are the best-selling Porsche in the global market, with a total of 95,604 vehicles delivered to the Porsche Cayenne in 2022. The Macan followed in second place with 86,724 units deliveredThese two models sold 35,661 and 25,080 units respectively in the Chinese market last year. What does this mean, the Cayenne in China accounts for 37 percent of its sales3% and Macan accounted for 29% of sales, and in the global market, both of these two cars accounted for about 30% of sales in the Chinese market. However, this year, the Macan model, one of the pillars of sales, has encountered a sales bottleneck.
Take, for example, the October sales figures. Porsche sold 5,288 units in October, down 14 percent month-on-month6%, of which 2,266 units were sold in the Cayenne, 1,180 units in the Panamera and 949 units in the Macan. At least until October, Porsche Macan sales were able to maintain sales of more than 1,000 units per month, but they also declined month by month, with a maximum of about 1,800 units (the brand sales of the month at the time), a minimum of about 1,200 units, and then less than 1,000 units in October.
The problem now is that one of Porsche's high-volume products, the Macan, is no longer selling. With the fluctuation of Macan's sales, Porsche's sales in the first three quarters have also been affected to a certain extent, and a decline is inevitable. It is also because Macan, as one of the few entry-level products of the brand, has a minimum sales price of less than 600,000 yuan**, which has ushered in market recognition within a few years of its launch. Less than one million**, getting a Porsche was extremely attractive to the domestic market at that time.
But now the consumption Xi has changed, the discount has reached more than 100,000, and the naked car ** has come to about 450,000. And 8 years have also exhausted consumers' enthusiasm for this product, so consumers with this budget have begun to look for alternatives. The emergence of new power products in an endless stream has given consumers more choice and a list of alternativesThe electric car products designed and produced in 2023 should be much better than the fuel vehicles designed and produced in 2015 in terms of product power.
As a result, there are some high-consumer groups who have begun to lose interest in this product, or have found a better alternative, in the ** range of about 600,000, Porsche is losing its brand advantage, product advantage, or is losing the initiative in this market.
Since Porsche established its first Porsche Centre in Chinese mainland in 2001, it has been in the domestic market for 22 years, and it is undeniable that this luxury brand still has a strong irreplaceability in the hearts of consumers. Moreover, the models sold in the past require optional additional options to have the opportunity to pick up the car, which is generally much higher than the naked car**, even so, the former Porsche is also one of the high-end brands favored by Chinese consumers.
Not for anything else, consumers pay for its brand influence and product strength. However, this irreplaceability is also quietly changing with the transition to electrification. After more than 20 years of making money in the Chinese market, the trend of change may be to gradually lose part of the market.
The simple reason is that Porsche's electrification is very slow.
Nowadays, the penetration rate of new energy in the Chinese market is increasing year by year, and the market demand for electric vehicles is gradually increasing, especially next year, there is a trend of penetration to the ** range of 500,000 yuan and higher, and this penetration will touch the core ** range of luxury brands, including the price range of Porsche. Even if such a pure electric product as the Taycan was given, it failed to open the market, in other words, it did not succeed in making this car a benchmark product for Porsche in the field of pure electric vehicles.
Secondly, according to the information, the pure electric Macan will be mass-produced at the beginning of 2024, and the specific time node has not been given, but the real domestic sales may have to wait until the first or second quarter. And next year Porsche has and only this pure electric model planned, and the next pure electric model is the 718 model, which is planned to be launched in 2025. Porsche's overall plan is that 50% of its products will be pure electric models by 2025, which means that there will be only three models in total in two years (and there are no plans to develop new models for the time being).
Three pure electric vehicles (including Taycan) in 2 years, not to mention the product strength for the time being, in terms of product planning and the time rhythm of new product launches, there is a big difference from the current update rhythm of pure electric vehicles. Considering another point, in order to maintain the high-end and luxury brand tonality, Porsche's electric car ** will naturally not be low, and it is likely to be much higher than the price of the current fuel version of the Macan naked car.
Then we have to think about whether the product can match the strength of the product. The product strength and differentiation of electric vehicles are not the indicators of acceleration and control, but the hard power of battery life, charging speed, and intelligence. Leaving a question of "by 2024, what will Porsche use to support the premium attribute of electric vehicles", I am looking forward to how the pure electric Macan will differentiate and let consumers continue to pay for it.
Electrification is not simple, and it is more risky for luxury brands like Porsche, and the only product that can be taken is Macan, which is also the first product to be electrified, and if it fails, it will be a big loss to sales. Electrified steering, for next year's Porsche, is more like a "bet".
The pure electric Macan will either lose in product power or lose in **.