Porsche will close about a third of its dealerships in China. This decision is dictated by the fact that demand in the most important market for Porsche until recently is sharply declining, as more and more Chinese people are switching to local brands. According to the results of the three quarters of 2024, Porsche sales in China have collapsed by 29 percent. This is reported by China Daily .
Porsche currently has 138 active dealerships in China. By the end of 2026, their number will be reduced to 100. In addition, the German brand will optimize local investments: investments in unprofitable Chinese regions will be reduced, and in profitable ones, where Porsches are still in demand, they will be increased. Among the latter, for example, are Shanghai and Beijing.
“The main goal is to increase the overall profitability of the network, which will be profitable for Porsche itself, as well as for dealers and customers, “ said Alexander Polich, head of Porsche China.
China has been Porsche's largest market for eight years. In 2021, the company sold 95,600 cars there, while 86,100 were sold in Europe and just over 70,000 in the US. In 2022, sales in China decreased by two percent, although they still exceeded those in Europe. In 2023 demand fell to 79,000, and in 2024 the situation promises to be even worse, with a decline of almost a third in the period January-September.
The Chinese turn to local brands has hit more than just Porsche. Sales of BMW, Mercedes-Benz and Volkswagen have also collapsed: their combined share has fallen from 25 to 14 percent in five years. In the electric car segment, the share of German brands is below ten percent.