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A few days ago, some netizens revealed on social media that Porsche's 100th sales outlet in China, the Guangzhou Porsche e-enjoy space located in Tianhuan Square, Tianhe District, Guangzhou, has been closed and the interior is empty.

On the afternoon of March 16, a reporter from "Automotive Industry concern" came to Tianhuan Square. from the scene, there were no staff in the Porsche Tianhuan Plaza store, and the previous exhibition cars had been emptied, leaving only fragmentary items, such as tables, chairs, display cabinets, and so on. However, the signs related to Porsche at the scene have not been completely removed, and there are no shielding measures outside the store, and citizens can still enter freely.

In this regard, the person in charge of Tianhuan Square confirmed that Porsche's sales outlets in Tianhuan Square have been withdrawn, "the mall will change customers normally, it will be better and better, please look forward to it." "Automotive Industry concern" learned from Porsche officials that the "Guangzhou Porsche e-space" sales network can no longer be seen in the sales outlets, and Porsche officials did not respond to the reasons for the withdrawal.

It is understood that Guangzhou Porsche e-Space officially opened in November 2017 and is the 100th sales outlet of Porsche in China. For Porsche, the store is not just a sales outlet, but the first retail experience showroom to implement Porsche's global digital transformation strategy. It covers an area of 460 square meters and is equipped with a series of multimedia walls and interactive devices. Customers can use VR technology to explore Porsche's full-brand car line and learn about the history of brand development.

While the withdrawal may be part of a strategic adjustment of the Porsche brand to optimize its sales network and improve operational efficiency, the withdrawal of Porsche's 100th sales outlet in China, as a landmark, also reflects Porsche's challenges in China.

On March 12, Porsche officially announced its 2023 results. During the reporting period, Porsche's operating revenue rose 7.7% year-on-year to 40.5 billion euros, sales profit rose 7.6% year-on-year to 7.3 billion euros, and net cash flow of the automotive business was 3.973 billion euros.

In terms of sales, Porsche delivered 320200 new cars worldwide in 2023, up 3 per cent from a year earlier. However, China became the only single market for Porsche to decline, with delivery of 79300 vehicles, down 15 per cent from a year earlier. As a result, Porsche's largest single market, which has been held by China for eight consecutive years, is now taken over by North America, which delivered 86100 new cars for the year, up 9 per cent from a year earlier.

Porsche entered the Chinese market in 2001, and the Chinese market has become the largest single market in the world since 2015. it has refreshed its sales performance in the Chinese market for 20 consecutive years. Porsche set an all-time high in the Chinese market in 2021, delivering 95671 new cars in the whole year. In 2022, Porsche sold 309884 vehicles worldwide, an increase of 2.6 per cent year-on-year. Total delivery in China was 93286, making it the only market in the world to decline, down 2.5 per cent from a year earlier. This is the first decline since Porsche entered the Chinese market. Porsche sales in China fell again in 2023, expanding to 15 per cent year-on-year compared with 2022.

Porsche's decline in sales in the Chinese market has been considered by the industry to be related to its electric transformation. Porsche announced an electric transformation in 2019, and the Taycan, the first all-electric sports car, was about to emerge, but subsequent products failed to keep up until January this year when it launched its second all-electric car, the Macan EV, which spans more than five years.

In this context, the electrified transformation of Porsche is more urgent. It is understood that Porsche plans to introduce no less than four new or substantially revamped models to the market in 2024. Panamera, Macan, Taycan and 911 have all launched new models, of which the mid-term revamped Taycan will be unveiled in Shanghai on March 12 and is expected to be pre-sold at the 2023 Beijing Auto Show.

The decline in Porsche deliveries in China does not mean the outlook is bleak, but it is a challenge for Porsche. Nowadays, in China's luxury market, independent brands are also beginning to challenge the status of Porsche, but no matter which brand, Porsche has a rich history, and the details of the brand are incomparable to many automobile brands. In the face of the decline of the Chinese market, what Porsche needs is to actively adjust its strategy, respond flexibly to the rapid changes in the market, and find new growth opportunities in the Chinese market, so as to achieve a rebound in performance.

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