Porsche Might Stop Making Electric Cars In China

Porsche sales in China fell 28 percent in 2024 to 79,283 cars. The first quarter of this year was even worse, with demand falling 42 percent to 9,471 units.

Porsche’s decline isn’t due to the 911 losing popularity but rather its struggle against Chinese competitors in the electric vehicle market. Companies like Xiaomi offer cheaper electric cars with greater power than the Taycan or Macan. Zuffenhausen is aware of this issue but may choose to withdraw rather than respond with price cuts or more affordable models.

Speaking at the Shanghai Auto Show, Porsche CEO Oliver Blume admitted that the company could stop selling electric vehicles in China in the foreseeable future: “We will see in the next two to three years whether Porsche exists as an electric brand here.”

Blum acknowledged that sales of Porsche electric vehicles in China are “relatively low.”

He made it clear that Porsche has no intention of chasing sales volume and will keep prices at a level “appropriate for Porsche.” Accordingly, the new Cayenne EV, due later this year, will not be cheap, nor will the electric 718 successor that is expected to arrive after the large SUV.

Blum does not consider Xiaomi, with its 1,548-horsepower SU7 Ultra model, a direct competitor, claiming it is a cheaper electric vehicle that cannot match the “driving capabilities” of the Porsche.

Unlike BMW, Mercedes, or Audi, Porsche has not invested in China-specific models. Global players have poured money into sedans with longer wheelbases and SUVs to increase legroom for rear passengers. Audi recently went a step further by launching AUDI (in all caps) as an all-electric sub-brand.

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