Porsche AG reported a significant 28% drop in 2024 China sales, with only 56,887 vehicles sold compared to 79,283 in 2023. The decline in the world’s largest car market impacted global sales, which fell 3% to 310,718 vehicles, despite gains in other regions like Germany, where sales rose 11%.
The slump in China, Porsche’s largest single market, reflects broader consumer reluctance to spend on luxury goods amid the country’s economic challenges, including a real estate crisis. Detlev von Platen, a Porsche board member, highlighted the company’s resilience in navigating a challenging environment.
In response to weak demand, Porsche announced plans in October to scale back its dealership network in China. This mirrors trends seen across other German automakers, with Mercedes-Benz (MBGn.DE) reporting a 7% drop in China sales and Volkswagen brand sales in China falling 8.3% to 2.2 million vehicles.
Despite growth in other regions, China’s persistent economic struggles continue to weigh heavily on luxury carmakers, underlining the challenges facing the global automotive market in 2024.
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