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A few days ago, Porsche released its first quarter 2023 performance report. During the reporting period, Porsche achieved operating revenue of 10.10 billion euros, an increase of 225.5% year-on-year; sales profit of 1.84 billion euros, an increase of 25.4% year-on-year; sales return of 18.2%, basically unchanged from the same period last year. In addition, net cash flow was € 1.43 billion, a significant increase from € 778 million in the same period last year.

In terms of sales volume, Porsche delivered 80767 vehicles worldwide in the first quarter, up 18% year-on-year. Among them, the sales volume in China market was 21365 vehicles, up 21% year-on-year, after becoming Porsche's largest single market in the world for eight consecutive years. Porsche said the main reason for such significant growth in the Chinese market was that the market was recovering after the epidemic. Other markets, including Europe and North America, also achieved relatively good results, with the North American market growing by 30% year-on-year.

It is worth mentioning that despite Porsche's impressive results, it plans to increase the price of Porsche's latest models in most markets in the second half of 2023 to offset the impact of supply chain problems on first-quarter profits. Porsche said its 18.2% return on sales in the first quarter fell short of Porsche's expectations due to inflation, higher costs for parts and raw materials and higher research and development expenses. Porsche therefore plans to increase the average selling price of sports cars in Europe and North America by 4 -8% in order to achieve higher profits in response to increased costs.

It should be noted that Porsche does not intend to raise prices in the Chinese market, but it did not disclose the reasons for giving up the price increase in China. "Auto Industry Focus" speculated that Porsche's decision to abandon price increases in China may be related to its position in the Chinese market.

In 2022, Porsche delivered 309884 vehicles globally, up 2.6% year-on-year, of which 93286 vehicles were delivered in China, which remained Porsche's largest single market in the world, although it became the only declining market in the world, down 2.5% year-on-year. Porsche sales revenue rose 13.6% year-on-year to 37.6 billion euros in 2022, with sales revenue in China rising 27.72% year-on-year to 9.013 billion euros, according to the earnings report.

At the same time, as a positioning ultra-luxury brand, Porsche has to start examining its position in the Chinese market in the face of more and more new forces in car building, rapidly layout high-end electric vehicles and seize market share of traditional luxury brands.

At present, China has become the world's largest automobile market, but also the world's largest new energy vehicle market, is the top priority of the global automobile brand layout. In contrast, Musk, who understands this sentence most deeply, not only attaches importance to the Chinese market, but also builds Tesla factories directly in Shanghai, which is also a key factor in Tesla's rapid development.

Next, the next trump card in the luxury car competition will be new energy vehicles, especially those manufacturers that attach importance to the electric vehicle market will take the initiative. Porsche said it aims for more than 50 percent of new car deliveries to be electric by 2025 and more than 80 percent to be pure electric by 2030. It is understood that the Panamera in 2023 may usher in a new generation, Macan will usher in a new pure electric version, and 2024 718 will also be replaced, the same pure electric model.

Porsche's price increase this time reflects the huge capital pressure of traditional luxury brands in the transformation of electrification and intelligence, which is called "ship disaster turning around". Despite Porsche's determined electrification strategy, it had to slow down due to funding and technical problems. Not long ago, a new generation of Porsche electric Macan was delayed until 2024 due to software development problems. Not only is Porsche like an elephant turning in the electric transformation, but the core competitiveness of traditional luxury brands such as BBA in the fuel car era is becoming more and more difficult to play in the electric car era. Even luxury brands are going further and further down the road of cutting prices to boost sales in order to get a piece of the market that is heavily "rolled in".

Next, the next trump card in the luxury car competition will be new energy vehicles, especially those manufacturers that attach importance to the electric vehicle market will take the initiative. Porsche said it aims for more than 50 percent of new car deliveries to be electric by 2025 and more than 80 percent to be pure electric by 2030. It is understood that the Panamera in 2023 may usher in a new generation, Macan will usher in a new pure electric version, and 2024 718 will also be replaced, the same pure electric model.

Porsche's price increase this time reflects the huge capital pressure of traditional luxury brands in the transformation of electrification and intelligence, which is called "ship disaster turning around". Although Porsche is firmly committed to its electrification strategy, it has had to slow down due to financial and technical problems. Not long ago, a new generation of Porsche electric Macan was delayed until 2024 due to software development problems. Not only Porsche in the electric transformation like "elephant turn", BBA and other traditional luxury brands in the fuel car era core competitiveness in the electric car era is increasingly difficult to play a role, even in order to "roll in" serious market share, luxury brands in the price reduction to promote sales on the road farther and farther.

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