Porsche responds! On May 27, Porsche China released a joint statement with all authorized dealers titled “Sweeping away the clouds, insight into the truth, steadfastly moving forward.” The statement mentioned unprecedented challenges and opportunities in the current automotive industry transformation. Previously, there were reports of some Porsche dealers in China protesting and preparing to pressure the German headquarters. Porsche China released a statement On May 27, Porsche China released a joint statement with all authorized dealers titled “Sweeping away the clouds, insight into the truth, steadfastly moving forward.” The statement expressed understanding and gratitude for the concerns about the cooperation between Porsche and dealers and their future development. Porsche China stated that the automotive industry is undergoing significant changes, and they are facing complex issues and opportunities together with dealers. Maintaining a long-term, trust-based dialogue mechanism is crucial. During the industry transformation, manufacturers must listen to dealers’ frontline voices, cooperate closely, support each other, and meet the needs of Chinese consumers effectively for sustainable win-win development. Porsche China mentioned that through thorough discussions, they and all authorized dealers will actively seek effective ways to respond to market changes, discover new opportunities in challenges. These discussions cover various aspects, including but not limited to business policies, local customer insights, customer service, and electrification transformation.
Prior to this, there was a “pressure palace” incident among Porsche dealers. It is reported that the spark was Porsche China’s decision to pressure dealers to complete sales tasks, which caused huge financial pressure on the dealers. This led to escalated conflicts between Porsche and dealers, with some Porsche dealers stopping deliveries and demanding subsidies from the headquarters while also requesting a change in relevant executives, thus creating a confrontation.
Porsche sales in China continue to decline In April of this year, Porsche released its first quarter financial report. The data shows that Porsche delivered 77,640 cars to global customers in the first quarter, a 4% decrease compared to last year. Specifically, in the Chinese market, 16,340 cars were delivered, down 24% year-on-year; in the North American market, 15,087 cars were delivered, a 23% decrease; in the European market, 20,044 cars were delivered in the first quarter, a 9% increase; in the domestic market of Germany, 11,274 cars were delivered, a 37% increase. In fact, Porsche’s sales in China have been declining since 2022. In 2022, Porsche’s global delivery volume was 309,884 cars, a 2.6% increase year-on-year. Among them, the total delivery volume in the Chinese market was 93,286 cars, a 2.5% decrease, making it the only market in the world to decline. In 2023, China continued to be the only market in the world where Porsche sales declined, with a total delivery volume of 79,300 cars, a 15% decrease year-on-year. At the same time, the title of Porsche’s largest single market, previously held by China for 8 years, was taken over by the North American region, which delivered 86,100 new cars in 2023, a 9% increase year-on-year.
Porsche’s sales in the Chinese market have declined, believed to be related to its electrification transformation. Porsche’s electrification transformation began in 2019 with the launch of its first all-electric sports car Taycan, but its second all-electric model, the new all-electric Macan, was only officially released in January of this year. Competition in the luxury electric vehicle market in China has intensified. BYD has launched its high-end brand “Yangwang” to enter the million-dollar luxury car market; Lotus’ electric sports car “Fanhua” was also launched this year; GAC Aion’s high-end brand Haobo has introduced the all-electric supercar Haobo SSR with a price range exceeding one million yuan; NIO also unveiled its million-dollar flagship model ET9 by the end of 2023. Porsche’s global CEO O’Brien has stated that Porsche faces challenges in the Chinese market but has no intention of joining the intense price war in China. He believes that maintaining Porsche’s unique brand value is more important than sales volume, and the sales growth in other overseas markets will offset the short-term fluctuations in the Chinese market. According to Porsche’s official website, in mid-May, prices for the Cayenne series were raised by 20,000 to 50,000 yuan (6900$); in mid-April, the Panamera increased by 70,000 to 100,000 yuan (13800$); the presale prices for the new Taycan and Taycan Turbo Cross Turismo models are up to 180,000 yuan (24840$) higher than the old models. However, according to China Fund News, several Porsche centers in Shenzhen are offering huge discounts on the lowest-priced Porsche Macan model. One center is offering a discount of up to 170,000 yuan (23460$), bringing the entry-level price of this model down to around 400,000 yuan (55210$). Porsche’s second all-electric model, the new all-electric Macan, was officially launched at the 2024 Beijing Auto Show with a suggested retail price starting at 728,000 yuan (100480$), and there are already discounts of over 80,000 yuan (11040$) at the retail end. According to a Porsche center in Shenzhen, the first new energy vehicle model Taycan currently has discounts of up to 200,000 yuan (27600$).