AutoBeta(AutoBeta.net)11/06 Report--

Michael Kirsch, CEO of Porsche China, said at the sixth Shanghai Expo on Nov. 5 that the current sales and scale of Porsche in China are not enough to support Porsche's domestic production. Michael Kirsch further said that Porsche is a luxury brand, so we will not simply mass production, we will pay more attention to customer personalized options and special needs. For domestic, we will continue to pay attention to and evaluate.

Earlier, Oliver Blume, Porsche chief executive, made it clear in an interview with the Financial Times that Porsche would not build a factory in China. It said, "Porsche's total production is not large, subdivided into each car line will be less, so it is not cost-effective to put into production in China." If Porsche sells more than 100000 single models in China in the future, we will also have a plan. "

In fact, rumors about Porsche made in China are common, but they have not yet been officially confirmed. On October 13, 2020, FAW and Audi formally signed the MOU of Audi FAW High-end New Energy vehicle Cooperation Project, announcing that the two sides jointly set up a new energy joint venture to introduce PPE platform, a high-end electric vehicle platform jointly developed by Audi and Porsche for large electric vehicles. The first model is scheduled to be put into production in 2024.

After reaching the intention of introducing the PPE platform with FAW, it is generally believed that this is a harbinger of Porsche made in China. However, Porsche responded at the time that "the production capacity of Porsche's European factories can fully meet the current market demand." The then Porsche China CEO made it clear that even if the PPE platform entered China, Porsche would not be made in China.

In May this year, there was another news that Porsche was expected to be made in China, when Wen Liebo, president and CEO of Porsche Management Consulting Co., Ltd., visited Hefei, and the market speculated that Porsche might accelerate its layout of the new energy vehicle industry in China. And build China's first complete vehicle production plant in Hefei.

In response to this rumor, Porsche said that Porsche (Shanghai) Management Consulting Co., Ltd., as a strategic and business consulting subsidiary of Porsche, would carry out in-depth cooperation with Hefei Economic Development Zone to further speed up the development of the park's self-driving industry and promote international cooperation between smart city infrastructure and the Smart Network connection automobile industry.

Although there is no comment on the "localization of Porsche", according to industry insiders, Porsche will not set up a complete vehicle factory in China, and this cooperation is understood as a pure misreading of building a plant in Hefei.

Admittedly, Porsche's life in the Chinese market is not as good as it used to be. In the first three quarters of 2023, Porsche sold 242722 vehicles worldwide, up 10 per cent from a year earlier. Of these, Porsche has a total delivery volume of 60748 vehicles in China, which is still the largest single market in the world, but it is the only market in the world that has declined, down 12% from a year earlier. By contrast, Porsche grew 23 per cent year-on-year in Europe (excluding Germany) and 19 per cent in Germany.

It is understood that Porsche entered the Chinese market in 2001, and the Chinese market has become Porsche's largest single market in the world since 2015. It has refreshed its sales performance in China for 20 consecutive years and reached an all-time high in 2021. In 2022, Porsche sold 309884 vehicles worldwide, an increase of 2.6% over the same period last year, of which the total delivery volume in China was 93286, making it the only market in the world to decline, down 2.5% from the same period last year. This is also the first decline since Porsche entered the Chinese market. Based on the current market performance, Porsche may see a decline in sales for two consecutive years, and the Chinese market may lose its position as the world's largest single market.

In the tide of electrification and intelligent transformation, this reality and predicament has also caused the current situation that the transformation of traditional luxury car companies seems to be always slow. As a positioning ultra-luxury brand, Porsche has to begin to examine its position in the Chinese market in the face of more and more new car-building forces, rapidly laying out the field of high-end electric vehicles and seizing the market share of traditional luxury brands.

Facing the Chinese market, Michael Kirsch, president and chief executive of Porsche China, said: "at present, the entire auto industry is undergoing revolutionary changes, and we have deployed the transformation many years ago to actively enhance local capabilities to meet future challenges." Mr Koshmai further said that "to a large extent, China will redefine the auto industry in the next decade", and Porsche will continue to increase its investment in innovation in China in the future.

For the future electrified transformation measures, Porsche said: Porsche will make every effort to accelerate the electrification process, Taycan will usher in Huanxin, pure electric Macan is scheduled to be delivered in 2024, and pure electric 718 series and pure electric Cayenne series will also be launched immediately. Porsche will also launch a new all-electric SUV model that is positioned higher than the Cayenne. Porsche is expected to strive for more than 80% of new car deliveries by 2030.

In fact, although electrification has become a consensus in the industry, whether Porsche, as a luxury brand, is really necessary to bet on electric cars. In terms of Porsche's product structure, fuel vehicles remain the main selling model, with deliveries of 68400, 64500 and 38800 Macan, Cayenne and 911 models respectively in the first three quarters, compared with 27900 deliveries of its electric model Taycan.

If you bet on electric cars, whether Porsche's global sales will collapse. At the same time, the electrified Porsche also lost the pursuit of pure speed and passion, and whether it can attract consumers.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat