As of October 25th， a report indicates that Porsche’s appeal to Chinese consumers has diminished， leading to a significant drop in its profitability.
According to foreign media， while Porsche has achieved record-high delivery volumes in the US market， its profits have experienced a sharp decline. For the first nine months of the year， Porsche’s operating profit fell from 4 billion euros in the same period of 2023 to just 40 million euros (approximately 331 million yuan RMB at current exchange rates)， marking a staggering 99% year-on-year decrease.
The company attributes this substantial profit reduction to several factors， including strategic product adjustments， unfavorable conditions in the Chinese market， and one-off expenses related to batteries. Additionally， tariffs are a significant contributor， with anticipated tariff expenditures reaching 700 million euros this year.
To mitigate the impact of tariffs， Porsche plans to further strengthen its pricing strategies in 2025 and 2026 and has already implemented price increases to ensure reasonable profit margins.
In the first nine months of this year， sales in the Chinese market reached 32，195 vehicles， a decrease of 26% year-on-year. The European market (excluding Germany) saw sales of 50，286 vehicles， down 4% year-on-year， while other overseas and emerging markets recorded sales of 43，090 vehicles， a year-on-year increase of 3%.
Prior to this， Porsche CEO Oliver Blume had revealed a significant development: Porsche may cease selling electric vehicles in the Chinese market within the next two to three years.
Regarding the rapidly emerging Xiaomi Auto， the CEO had previously publicly commented that Xiaomi’s low-price strategy cannot be compared to Porsche’s “driving capabilities.”
