Porsche Has A Response Ready For The Chinese

The drop in sales in the world’s largest automotive market is also hitting Porsche hard. After delivering 28 percent fewer cars in China in 2024, the negative trend continues this year.

Porsche China CEO Alexander Pollich bluntly admits that the competition is stronger than ever. In an interview with Automobilwoche, he described the local market as extremely aggressive and changeable and the local brands as technologically and price-savvy.

“The pace of innovation in China is astounding, as is the variety of offerings. Prices and marketing strategies are changing day by day. Suddenly you’re faced with a multitude of new entrants, and their cars really suit the customers’ tastes,” Pollich said, adding that Porsche “accepts the challenge.”

The situation is further complicated by the lowering of the luxury tax threshold from 1.3 million to 900 thousand yuan (about 49,300 euros), which made a large part of Porsche models even more expensive.

Because of this, Porsche is forced to reduce the number of dealerships. From 150 in 2024, they have already fallen to 120, and by the end of next year, only 80 will remain. Meanwhile, sellers are eagerly awaiting new models with internal combustion engines, which should bring back part of the lost audience. The key assets are the all-new petrol-powered Macan and a large SUV with three rows of seats that was supposed to be purely electric but will arrive first with classic engines.

The decline in sales is not an isolated case: the BMW Group fell by 13 percent last year, Mercedes by seven, and Audi by 10.9 percent. All are fighting the same phenomenon: local brands offering high-tech electric models at prices that Western manufacturers can hardly match.

Pollich therefore warns that 2026 will be a “challenging” year, but makes it clear that Porsche does not plan to establish a parallel brand like Audi’s new AUDI. The focus remains on strengthening the core offer.

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