Having long been driven by the dynamism of the Chinese market, Porsche is now seeing its influence dwindle in the face of the rise of local brands, the German luxury brand, a symbol of Western automotive luxury, is considering abandoning its electric offerings in China, amid sharply declining sales.
The Chinese market, long a growth engine for Western manufacturers, is now undergoing rapid change, with local brands ramping up their highly competitive electric models, this leaves Porsche and its Western peers struggling to find a place in the changing automotive landscape.
In 2024, Porsche saw its sales in China decline by 28%, selling 79,283 vehicles throughout the year. This trend has worsened in early 2025, with a staggering 42% decline in the first quarter, bringing the total number of vehicles sold to just 9,471.
This stands in stark contrast to the heyday of 2021, when China accounted for nearly a third of the brand’s global sales, with 95,671 units. The discontent of the Chinese public no longer extends to the luxury segment, a segment historically dominated by foreign brands.
The Shanghai Auto Show saw the introduction of dozens of new models, featuring advanced technology and competitive pricing, far from introducing new electric models, Porsche chose to showcase two limited-edition 911s, surrounded by older models and the slogan: “There is no alternative.” This strategy seems at odds with current expectations in the Chinese market.
Chinese companies are working to attract customers with technologically advanced and more accessible electric vehicles, at unbeatable low prices. Examples include Xiaomi and BYD. Xiaomi sold 137,000 units of its SU7 electric sedan in a single year, more than double Porsche’s total sales in China.
At the 2025 Shanghai Auto Show, Porsche and Volkswagen Group CEO Oliver Blume didn’t rule out the idea of completely eliminating electric models from the Porsche lineup in China within the next two to three years.
The Taycan and Macan electric vehicles are the flagship models of the venerable German automaker’s electric transformation, but they are struggling to convince in terms of volume and even price. Western cars are no longer the epitome of technological sophistication and quality they once were.
Chinese cars are not only more powerful, but also less expensive. The 1,548-horsepower Xiaomi SU7 Ultra is priced at $72,600, compared to $126,000 for the base 402-horsepower Taycan.
Porsche prefers to keep prices high rather than enter into a price war it knows it will lose in advance. Olivier Blume confirms: “Porsche is not chasing volume and intends to maintain its brand image through its own driving standards, rather than competing directly with Chinese manufacturers.”
Unlike Audi, BMW, and Mercedes, which are developing specific models for China to meet local demand, Porsche has not yet adapted its product strategy. The result is a widening gap in favor of increasingly sophisticated and connected local competition.
In China’s highly competitive car market, where every car now includes autonomous driving, giant screens, artificial intelligence, and a host of gadgets ranging from refrigerators to massage seats, Porsche appears to be clinging to a classic approach that no longer appeals to young Chinese consumers.
It still wants to leverage its rich heritage to promote its cars, but it is failing to attract new customers, especially young people.
Bo Yu, director of the research firm Jato Dynamics, emphasized this point, saying, “The concept of Porsche as a golden brand means nothing to the younger generation in China.”
However, Olivier Blume remains confident. For him, Porsche doesn’t directly compete with Chinese brands like Xiaomi and Yangguang: “They’re great cars,” he said, but they lack “driving pleasure.”
But herein lies the problem: in an era of advanced technology, artificial intelligence, and autonomous driving, are customers still looking for driving pleasure and the sound of birdsong?
Note: All statements in this article are sourced from Reuters.
