Porsche has announced restructuring its dealership network in China, reducing the number of Porsche Centers from 138 to about 100 by the end of 2026. This move, described by the company as an “optimisation,” comes as the German luxury carmaker grapples with declining sales in what was once its most important market.
Sales figures for Porsche in China have been on a steady decline over the past two years. In 2023, the company reported a 15% drop in sales, with a total of 79,283 vehicles sold. The situation worsened in 2024, as sales plummeted by 29% in the first nine months of the year. Once regarded as Porsche’s largest market for eight consecutive years, accounting for more than 30% of its global sales, China has become a challenging landscape for the brand amid shifting market dynamics and intensifying competition.
Struggles in the Chinese Market
China’s evolving automotive market has presented significant challenges for foreign brands like Porsche. The rise of local electric vehicle (EV) manufacturers, coupled with a growing consumer preference for new energy vehicles (NEVs), including battery electric and plug-in hybrid models, has reshaped the industry. Meanwhile, an ongoing price war has put further pressure on luxury automakers, with reports suggesting that some Porsche models have seen discounts of up to 35% at dealerships.
