Porsche’s crisis deepens: sales at their lowest since 2020
Deliveries plummeted by 16 per cent in the first half of the year. The German carmaker is facing weak demand, the end of key models and local competition in China. It is now embarking on a restructuring programme to restore profitability
Key points
Porsche’s deliveries fell by 16 per cent in the first half of the year, dragged down by weak demand in its main market, North America, and a drop of almost a third in China, further highlighting the gloom surrounding the German automotive sector.
Sales fell to 122,306 units in the period from January to June, the German manufacturer said, the lowest level since 2020. The company recorded a fall in deliveries across all regions, with North America down 13 per cent and China down 32 per cent.
Sales at their lowest since 2020
Porsche stated that the main reasons for the overall decline include the end of production of the combustion-engine 718 model, last year’s strong demand for the all-electric Macan, and the expiry of US tax incentives for electric and hybrid vehicles.
The decline is most pronounced in China, where a property crisis and tougher local competition are dampening demand for high-end vehicles from Mercedes-Benz, BMW and Porsche. Porsche has scaled back its dealer network in the country and is working to offer in-car software that is better suited to local tastes. The manufacturer of the 911 sports car expects its sales in that market to fall for the fifth consecutive year in 2026.
Porsche shares fell by as much as 2.1 per cent in Frankfurt. They have shown little movement this year, as investors have already factored in the downturn in China that has been ongoing for several years. The share price also tends to fluctuate less than that of some of its competitors because Volkswagen still owns more than three-quarters of Porsche following the sports car manufacturer’s initial public offering in 2022, resulting in a small free float.
