Porsche China sales plummet 28%, pressures mount

Porsche’s China woes intensified in the first half of 2025, with the German automaker reporting a devastating 28% YoY sales decline in mainland China as part of a broader 6% global sales slump, according to company data reported Tuesday. The luxury carmaker delivered 146,391 vehicles worldwide in the first six months of 2025, with China bearing the brunt of the downturn. The sharp decline underscores the mounting challenges facing premium German automakers in the world’s largest automotive market, where intense competition from local electric vehicle manufacturers and shifting consumer preferences continue to erode foreign brands’ market share. Deepening China crisis The latest figures detail an acceleration of Porsche’s China decline, building on a troubling trajectory that saw the carmaker slash its dealership network by nearly one-third in December 2024. The brand, which had held the top spot in luxury brand rankings for eight consecutive years through 2025, has been grappling with what executives describe as “challenging market conditions and intense competition.” Porsche’s China struggles extend beyond sales figures. The German automaker reshuffled its Asia-Pacific leadership in December 2024 following persistent market pressures, and slashed profit targets in March this year as China sales continued their steep descent. The decline marks a dramatic reversal for a brand that once considered China its golden market. From 2015 to 2022, China served as Porsche’s largest single market globally, with sales peaking at over 95,000 units in 2021. However, the market has proven increasingly challenging for foreign luxury brands as domestic competitors like BYD and Nio gain traction with more affordable, technologically advanced alternatives. North America's bright spot amid global decline Despite the China setback, Porsche found success in North America, where deliveries surged 10% YoY in H1 2025. The company attributed the North American growth to improved product availability and price protection strategies implemented in response to rising import tariffs. The automaker’s electric vehicle strategy showed mixed results, with electrified models accounting for 36% of total deliveries, up 14.5% YoY However, this growth wasn’t sufficient to offset the significant losses in China, highlighting the brand’s heavy dependence on the Chinese luxury market. Industry-wide pressure Porsche’s struggles reflect broader challenges facing German luxury automakers in China. Mercedes-Benz reported a 9% decline in Q2 unit sales, while the overall imported vehicle market in China declined 14.3% in the first 10 months of 2024, according to Car News China. The German automaker's difficulties also mirror those of parent company Volkswagen, which has faced similar pressures across its brand portfolio in the Chinese market, as local manufacturers continue to gain ground with competitive pricing and rapid innovation cycles. Read more: China’s luxury car brand that’s come from behind to overtake BMW Cars and Culture guests talk automotive dos and don’ts Can automotive brands truly break into fashion?

Porsche China sales plummet 28%, pressures mount

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Published July 08, 2025

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Porsche China sales plummet 28%, pressures mount