German luxury sports car manufacturer Porsche AG has reported a 28% decline in its car sales in China for 2024, attributed to weakening demand in the world’s largest automobile market. The news was reported by Reuters.
Owned by the Volkswagen Group, Porsche sold 56,887 vehicles in China in 2024, compared to 79,283 units the previous year. The decline in Chinese sales led to a 3% drop in Porsche’s global sales, which fell to 310,718 units. However, growth was recorded in other markets, including an 11% increase in sales in Germany.
Economic challenges and a real estate crisis have dampened Chinese consumers’ appetite for luxury products, impacting manufacturers like Porsche and other high-end automakers.
Despite the setback, Porsche board member Detlev von Platen stated in a press release, “Even in the challenging market conditions of 2024, we have proven to be highly resilient.”
In October 2024, Porsche announced plans to downsize its dealership network in China due to sluggish demand.
Other German automakers are also struggling in the Chinese market. Mercedes-Benz faced a 7% drop in sales in 2024, while Volkswagen brand sales fell by 8.3% to 2.2 million units.
