German sports car manufacturer Porsche AG reported a significant drop in its 2024 sales in China, with figures tumbling by 28% year-over-year. In total, Porsche sold 56,887 vehicles in China in 2024, compared to 79,283 in the previous year. The downturn in sales contributed to a global sales decrease of 3%, bringing total global sales to 310,718 vehicles for the year.

Key Factors Affecting Porsche's Sales:

• Weak Consumer Demand: The primary driver behind this sales slump is the persistent weakness in the Chinese economy. A faltering real estate market and broader economic challenges have made Chinese consumers more reluctant to spend on luxury goods, which includes high-end vehicles like Porsche.
• Overall Global Performance: While Porsche faced a decline in China, the brand did see growth in other markets, notably an 11% rise in its home market of Germany. However, the overall negative trend in China weighed heavily on global numbers.
• Strategic Adjustments: Porsche's board member, Detlev von Platen, noted the company's resilience in a challenging market, adding that the company plans to reduce its dealership network in China due to the ongoing weak demand.

This downturn follows similar struggles for other German automakers. Mercedes-Benz and Volkswagen also reported declines in their China sales for 2024, with Volkswagen noting an 8.3% fall and Mercedes-Benz seeing a 7% drop.

For more information on Porsche's global sales and strategies, explore detailed financial insights using Porsche's annual reports (Form 10-K).