Porsche China CEO Alexander Pollich acknowledged significant challenges as operating profit fell 99% YoY to 40 million euros ($44 million) in the first three quarters. “Tariffs alone will cost us 700 million euros ($776 million) this year,” Pollich said. “But the bigger challenge is meeting Chinese consumers’ advanced demands for smart features.” He revealed that Chinese consumers now expect intelligent driving and cockpit systems as standard equipment. In response, Porsche’s Shanghai R&D center has been granted full autonomy in developing infotainment systems. “We were late to China's EV competition,” Pollich admitted.