Porsche sales are really declining, what is the reason?

Mondo Cars Updated on 2024-01-31

China is Porsche's largest single market, accounting for about 30 percent of global sales in 2022.

However, this situation has taken a turn for the worse in 2023: in the first three quarters, Porsche sales in China fell by 12% year-on-year.

Is Porsche no longer popular?Will Porsche be replaced by China's new energy?

Porsche's brilliance in the Chinese market

Porsche built cars for the Chinese market earlier than many people think.

In 1994, Porsche was invited to participate"China Family Car Program".It took 4 months to develop a compact family car called the C88 for the Chinese market.

In the 90s, when the Chinese family car market was just beginning to take off, the design of the C88 was cross-generational. Unfortunately, the car was never put into production, and the prototype was stored at the Porsche Museum in Stuttgart.

Porsche's C88 family car, developed specifically for the Chinese market

In the early 90s, Porsche was on the verge of bankruptcy and began to take on car projects all over the world.

This explains why a luxury sports car brand has been involved in bidding for family cars in China. Ten years later, Porsche's take-off in the Chinese market laid the foundation.

Although the C88 project did not land, Porsche survived the crisis with the Boxster, and gradually became a luxury SUV and luxury sedan after the turn of the millenniumThe most profitable in the worldof car companies.

Porsche's first luxury SUV, the Cayenne, was unveiled in 2002, just in time for the take-off of China's luxury car marketIn 2009, Porsche's first four-door luxury sedan, the Panamera, made its world premiere in Shanghai.

In 2009, Panamera was shipped to the Shanghai World Financial Center.

China has always been Panamera's largest single market in the world, accounting for more than half of the world's total sales. The launch of the Macan has pushed Porsche's sales to new heights.

Not only are four-door cars popular in the Chinese market, but the 718 once had to be picked up at a higher price, and the high-performance version of the 911 has also become"Wealth Management Products".

In the past few years, Porsche's performance in the Chinese market has indeed been brilliant.

The Chinese market is highly competitive

The decline in sales in 2023 is due to many reasons.

China's luxury car marketConsumption is more rationalNot only Porsche, but also many ultra-luxury brands have changed from the price increase to the current price reduction.

Compared with the ever-changing Chinese new energy vehicle industry,Porsche's product updates are also a little sluggish. Whether it is the main model Macan or the popular sports car 718, it has not been a real replacement for a long time. The next-generation models of both are fully electric, requiring a longer development cycle.

The Cayenne and Panamera, which were once very popular in the Chinese market, will only complete the mid-term facelift and replacement at the end of 2023, and it will be known in 2024 how the market performs.

The all-new Panamera has once again chosen to make its debut in Shanghai.

Once Porsche, yesAlmighty Pentagon Warrior:Strong power, good handling, excellent design, luxurious interior, and high configuration.

However, the current domestic new energy vehicles only need one-fifth of the first to basically achieve these product points, and even completely surpass Porsche in some aspects.

How many people are willing to pay a premium for Porsche's brand and handling?

The SU7, nicknamed the "Preservation Meter", is a product that is on par with the Taycan Turbo

Porsche's performance around the world

In fact, there is no need to worry that Porsche will go bankrupt and the 911 will not be continued.

Although the Chinese market is the most important part of the global automotive market, it is also a very special existence. The decline in sales in the Chinese market does not mean that it will not succeed in other markets.

In 2023, Porsche's sales in the North American and European markets will increase steadilyThe limited-edition model sold out immediately upon release.

A hard-to-find 911 s t

The European and American auto markets have a different view of automobiles than the Chinese market, and Porsche, a brand with a history of several decades, has a large number of loyal customers.

In addition, due to market protection and other reasons, the cost-effectiveness and product power of China's new energy vehicles cannot be fully reflected in other markets, and it is difficult to bring impact.

The first electric car of many Porsche owners is most likely an electric Porsche.

What is the future of Porsche in the Chinese market?

China will continue to be Porsche's main market, but flat or declining sales may become a common phenomenon.

At the heart of Porsche is handlingHowever, Porsche's most attractive performance or limited edition models have not been officially introduced in Chinae.g. Sport Classic, GT3 Touring.

Loyal Porsche fans will find it difficult to realize their dreams, which will have an impact on the tone of the entire brand.

China's 20th anniversary edition of the 911 Turbo S is not very sincere.

And those popular models, which account for the majority of Porsche's sales, will also gradually move towards electrification.

While Porsche still has an advantage in some core technologies, the latest Taycan prototype ran 7:07 in New Zealand, which is as good as most supercars.

However, lap time and handling are not what most electric vehicle users need, and domestic new energy is obviously more attractive in terms of battery life, intelligent cockpit, and automatic driving.

The Taycan prototype set a lap time of 7:07 in New Zealand.

Mercedes-Benz and BMW's electric vehicles have been greatly reduced in China, with a cost performance similar to that of domestic new energy, and the "three-pronged star" and "blue sky and white clouds" can indeed attract a group of users.

What will happen to Porsche's electric cars in the Chinese marketIs it to exchange price for volume or to keep the first fade out of the market, perhaps only time will tell.

But what is certain is that the best electric vehicles in the Chinese market have been difficult to rely on brands to support sales.

Source: Porsche Newsroom, Hagerty

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