German luxurious vehicle giant reports another huge sales decrease
(MENAFN) Luxury carmaker Porsche has announced a 6% drop in global sales for the first half of the year, with the sharpest decline occurring in China. The company attributed the downturn to “challenging market conditions” and intensifying competition in the Chinese auto sector, according to a statement released Tuesday.
Deliveries in China, once Porsche’s largest market, plummeted by 28%. In 2022, the country accounted for about 30% of Porsche’s global sales, but the trend reversed in 2023, prompting the closure of several dealerships. Chinese brands such as Xiaomi have been gaining ground by offering high-performance electric vehicles at lower prices.
One major factor behind the Chinese brands’ success is their rapid development cycle. Companies like BYD and Chery have reduced the time to bring new models to market to just 18 months, compared to over five years for foreign competitors, according to Reuters.
In response to China’s growing automotive presence, both the U.S. and EU have introduced tariffs, accusing Beijing of unfairly subsidizing its manufacturers. However, analysts suggest China’s advantage lies more in its speed and innovation than in government support alone.
Sales also slumped in Porsche’s home market of Germany, which saw a 23% decline, while European sales overall were down 8%. Germany’s economy shrank for a second consecutive year in 2024, affected by high energy costs, rising interest rates, slow digital progress, and a skilled labor shortage—all of which have impacted the auto industry.
Despite these setbacks, Porsche saw a 10% sales increase in the United States. The company rushed shipments earlier this year to avoid a new 25% import tariff, boosting inventories and making North America its top sales region for 2024. Sales in emerging markets also grew by 10%, marking a new record for those regions.
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