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Text |BT Finance, Author |The seaPorsche is no longer available in China.
According to "China News Weekly" on December 17, Porsche's sales in China will decline slightly in 2022, and in 2023, it will directly become "** report shows that Porsche recently announced its sales data for the third quarter of this year, among them, Porsche's sales in the Chinese market are 40%, becoming the only declining market in the world.
Porsche's performance in the first three quarters was even more intriguing: North America sold 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%, respectivelyIn the Chinese market, a total of 6070,000 units, down 12% y/y.
In this regard, Michael Kirsch, President and CEO of Porsche China, said that there are three reasons for the decline in Porsche's sales in China in the first three quarters, one of which is the switch between the old and new models of the Cayenne, which is the most popular model in the Chinese marketThe second is that the macro market is extremely fierce;The third is to allocate a part of the Chinese market to other markets around the world.
What happened to Porsche, which was once popular in China?
In the automotive industry as a whole, no one can deny Porsche's position. Since the first Porsche left the Zuffenhausen plant in Germany in 1963 and has now completed seven generations, it has long been a special symbol of automotive history and culture.
In 1930, Dr. Ferdinand Porsche founded the Porsche Company with a passion and a dream for pure sports cars. He was the chief engineer of Mercedes-Benz, and with his experience and innovative spirit, he led the team to build the first Porsche sports car, the Porsche 911. With its unique design and excellent performance, this car quickly became a sensation in the market.
In the decades that followed, Porsche continued to evolve and innovate, introducing a number of classic models, including the Porsche 917, Porsche 928, and more. However, with the development of *** and the intensification of competition, Porsche faced serious challenges in the 70s and 80s. The company's financial situation was once worrying, and it was even on the verge of bankruptcy.
The former Porsche team worked hard. They strive to improve their products, optimize their production processes, and actively seek new opportunities for growth. At the beginning of the 90s of the 20th century, Porsche managed to turn the company's finances around with a completely new model, the Porsche 911 Carrera RS 96. With its excellent performance and unique design, this car has won the love of fans around the world.
In the 21st century, Porsche has developed even more rapidly. In addition to continuing to launch a number of high-profile models, such as the Porsche Carrera GT and the Porsche Panamera, Porsche has also expanded its business scope to include motorsports, car rental and other fields, and has become one of the most influential sports car brands in the world.
However, Porsche has also been criticized by the automotive industry, with some critics criticizing Porsche's lack of innovation in design.
Jeremy Clarkson, a reviewer for Top Gear magazine, said of Porsche: "It's probably the easiest designer in the world, because when it's time for a 911 to be replaced, the designer just takes the previous version of the design to the photocopier, changes the size, and voila, it's a new 911!."After elongation, voila, it's a Paramela!When you get taller, voila, it's a Cayenne!It is said that in Stuttgart (Porsche's German factory), the best selling office appliance is the photocopier, after all, there are so many design drawings that need to be copied. ”
Porsche, like Apple, has been questioned for lack of innovation in design with each generation, but sales have not been prevented from rising.
According to the 2022 financial report, in fiscal year 2022, Porsche set four new historical records in terms of revenue, profit, new vehicle delivery rate and net cash flow of the automotive business, achieving the strongest fiscal year performance in Porsche's history. In 2022, Porsche China delivered around 930,000 units, accounting for 30% of Porsche's global sales, making it Porsche's largest single market in the world.
In 2023, China's auto market for new energy vehicles is in full swing, but Porsche seems to be unable to sell in China.
Recently, Porsche's official website disclosed delivery data for the first three quarters, and in the first three quarters of 2023, Porsche delivered 24270,000 units, up 10% y/y. In terms of markets, the delivery volume of the Chinese market in the first three quarters was 6070,000 units, down 12% y/y. It was the only single market to see a year-on-year decline.
It should be emphasized that the data shows that from 2015 to the first half of this year, China has been the largest single market for Porsche, and the current North American market is 6.5%.450,000 units topped the list. This means that if Porsche's sales in China cannot catch up in the fourth quarter, the world's largest single market may change hands in 2023.
Regarding such a situation, the "China News Weekly" article pointed out: "China's young lady doesn't love Porsche anymore."
According to the China News Weekly article, compared with other Porsche markets, the average age of Chinese car owners is the youngest, and the proportion of female car owners has also reached the highest about 50%. Chinese women are not just Porsche users, but also have the identity of purchasing decision-makers, buyers and users.
The article of China News Weekly pointed out that the contribution of the Chinese lady to Porsche's performance is quite outstanding, so on the basis of "for every three cars sold by Porsche, one is sold to China", a portrait of the owner has been added: for every two cars sold in China, a female owner will be gained.
There may be other reasons for the decline in Porsche's sales, such as the fact that Chinese consumers' perception of car buying is quietly changing.
More and more people are beginning to realize that the make and model of a vehicle does not determine a person's value and taste. Vehicles should be practical tools that cater to an individual's needs and lifestyle. There is a greater focus on practical factors such as vehicle safety, fuel economy and comfort. They pay more attention to the performance and quality of the vehicle than just the appearance and fame.
In addition to practical considerations, environmental considerations are also gradually becoming part of the concept of car purchase. With the increasing prominence of environmental problems, people have begun to pay attention to vehicle emission standards and green travel methods. More and more people are choosing to buy electric or hybrid vehicles to reduce the burden on the environment and pursue a more sustainable lifestyle.
In the context of the development of new energy vehicles, Porsche's market share as a luxury brand has been impacted in the face of China's emerging car manufacturers and traditional independent brands continuing to enter the high-end market.
According to the data of the Passenger Car Association, the retail sales of new energy luxury vehicles from January to September were 580,000 units, a year-on-year increase of 89%, exceeding the 560,000 units in 2022. The cumulative retail sales of traditional luxury cars from January to September were 1.66 million units, a year-on-year increase of 13%, and 2.22 million units for the whole of 2022. In September, the retail penetration rate of new energy vehicles among luxury vehicles was 24%.
In other words, the market growth of luxury cars mainly comes from new energy vehicles, and the sales growth rate of new energy vehicles is much higher than that of traditional cars, while Porsche is dominated by traditional fuel vehicles. To capture the market, the electrification transition is imminent.
However, Porsche's transition to new energy faces many challenges and headwinds.
From a technical point of view, the technology research and development of new energy vehicles requires a lot of manpower, material and financial resources. As a traditional sports car manufacturer, Porsche lacks sufficient accumulation and experience in new energy vehicle technology. Therefore, technical difficulties are one of the most important dilemmas faced by Porsche in the transformation process.
In addition, the new energy vehicle industry chain involves many fields such as batteries, motors, and electronic controls. Porsche needs to work closely with the best players in these areas to ensure the quality and performance of its products. However, in the process of transformation, Porsche needs to face the problems of industrial chain integration, including the selection of leading merchants, the establishment and maintenance of cooperative relationships, etc.
Most importantly, the competition in China's new energy vehicle market is very fierce, and competitors including Tesla and BYD are actively laying out the new energy vehicle market. Porsche is facing tremendous competitive pressure from its NEV rivals.
At the moment, Porsche's transition to electrification is not going well. Looking back at its electrification development in China, despite the launch of many new energy products, there is currently only one Taycan in terms of pure electric vehicles. Deliveries of the Macan EV, which was originally scheduled to be delivered this year, have been postponed to next year. In addition, the main advantages of the Porsche Taycan lie in design, performance and handling, but its performance in the fields of intelligent cockpit and automatic assisted driving is far from meeting the market's expectations for high-end products.
Porsche has been actively seeking opportunities for platform cooperation with domestic brands. In order to achieve this goal, Porsche has approached domestic brands such as BYD, Li and NIO, but unfortunately, none of these collaborations have followed.
Of course, Porsche is not entirely without turnarounds. Recently, Porsche released the official interior image of the Macan electric model, which is the most important pure electric SUV of Porsche at this stage, and adopts the Premium Platform Electric (PPE) platform for the first time. The new car is equipped with a permanent magnet synchronous motor (PSM) and 800V technology, which brings consumers better performance and range. In terms of interior, the Macan pure electric version adopts a simple and high-tech style, which has already gained market attention before it is launched.
However, China's luxury car market has become a red ocean, especially the rise of domestic luxury cars, domestic cars are now more competitive than joint venture brands and luxury brands. Whether Porsche can retain China's young lady depends on its brand power.