Porsche AG, the renowned German sports car manufacturer, reported a significant 28% decline in its sales in China for 2024, as the company grapples with ongoing weakness in the world’s largest car market.
The luxury automaker, which is majority-owned by Volkswagen, sold 56,887 vehicles in China last year, down from 79,283 units in 2023. This steep decline in the Chinese market contributed to a global sales dip of 3%, with total deliveries falling to 310,718 vehicles compared to 2023 figures. Despite this setback, Porsche managed to achieve growth in several other markets, including an 11% increase in its home market of Germany.
The downturn in China comes as consumers in the region grow more cautious in their spending on luxury goods amid an economic slowdown driven by a severe real estate crisis. This trend has created significant challenges for high-end carmakers operating in the country.
“Despite a challenging market environment, we have proven to be extremely resilient in 2024,” Porsche’s board member Detlev von Platen remarked in a statement.
In response to the sluggish demand, Porsche announced in October that it would reduce the number of its dealerships in China, signaling that the sales decline is expected to persist.
Porsche’s performance mirrors the broader struggles facing the luxury car sector in China. Mercedes-Benz reported a drop in core car sales for 2024, largely due to a 7% decline in its Chinese market. Volkswagen’s sales in China also took a hit, falling by 8.3% to 2.2 million vehicles.
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