Porsche, the renowned German luxury car brand, has faced a significant decline in deliveries in China in 2024. The company saw a 28 percent decrease in deliveries compared to 2023, with a total of 56,887 units sold. This marks the third consecutive year of decline for Porsche in the Chinese market, which has been attributed to increased competition in the region.
Despite the drop in deliveries in China, Porsche’s global sales only saw a 3 percent decrease from 2023, totaling 310,718 units. North America remains Porsche’s largest market, contributing 86,541 deliveries, a 1 percent increase year-on-year. Deliveries in Germany also saw growth, with 35,858 vehicles sold in 2024, representing an 11 percent increase from the previous year. European markets excluding Germany contributed 75,899 units, up 8 percent year-on-year.
Porsche entered the Chinese market in 2001 and had experienced continuous sales growth until recent years. In 2015, China became Porsche’s largest single market in the world, with sales peaking at 95,671 units in 2021. However, deliveries in China have been on a downward trend since 2022, when Porsche saw its first decline in the country.
In response to the decline in sales, Porsche has announced plans to downsize its sales outlets in China. The company aims to reduce its outlets to about 100 by 2027, down from the current 144 dealer outlets in the country. Reports have also surfaced suggesting that Porsche may need to lay off employees in China, with a potential downsizing of about 30 percent.
The challenges faced by Porsche in the Chinese market highlight the competitive nature of the luxury car industry in the region. Despite these setbacks, Porsche remains committed to its global expansion and continues to innovate in the luxury car market.
