AutoBeta(AutoBeta.net)05/27 Report--

On May 27, Porsche China responded to the news that "Porsche dealers in China launched a collective protest and boycott, ready to force the German headquarters".

According to the Financial Associated Press, Porsche China responded: "Porsche is committed to value growth-oriented development and makes every effort to speed up the electrification process." In the process of this transformation, Porsche hopes to work side by side with long-term dealer partners to face various challenges, support each other and achieve win-win development. Porsche will unswervingly put the interests of its customers first and work together with dealers to meet the challenges of the market and seek development. "

According to the above report, Porsche China has successively held dealer group meetings with various dealer groups to communicate with some dealers in response to the protests and boycotts, and provided car-picking and warehousing support for 1000 Panamera vehicles to help optimize dealer inventory and cash flow. In addition, in order to balance supply and demand, Porsche China intends to carry out a study on the possibility of adjusting its sales plan for 2024.

The thing is, according to the car blogger Sun Shaojun, Porsche dealers in China collectively "rebelled" and prepared to force the German headquarters. The main focus of the contradiction is that Porsche sales have plummeted and pure trams cannot be sold, resulting in car sales at a loss. Porsche China still chooses to press the warehouse in order to complete the sales task, which leads to the intensification of the contradiction between the two sides. Porsche dealers used stopping getting into the car as a weapon, demanding subsidies from Porsche headquarters and replacing executives. In addition, according to the latest report from Interface News, at the Porsche dealers' conference in China at the beginning of this year, three Porsche dealers in China, Xinfengtai, Badley and Meidong Group, raised objections to this year's sales tasks, but so far they have not been resolved.

As of press time, Porsche China responded to the relevant media on the latest progress of negotiations between Porsche China and dealers: "there is no more information yet." For the latest progress of the negotiations between the two sides, "Automotive Industry concern" will also continue to pay attention.

Porsche, a luxury car brand owned by Volkswagen Group, was founded in 1931. Headquartered in Stuttgart, Germany, Porsche is famous for producing high-end sports cars. Porsche officially entered the Chinese market in 2001, and since 2015, the Chinese market has become the largest single market in the world, refreshing its sales performance in the Chinese market for 20 consecutive years and reaching an all-time high in 2021. According to the data, Porsche sold 309884 vehicles worldwide in 2022, 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. The Chinese market also declined in 2023, with global Porsche sales of 320221 vehicles in 2023, up 3 per cent from a year earlier, and total delivery in China was 79283, down 15 per cent from a year earlier.

Statistically speaking, although the Chinese market is Porsche's largest single market in the world, Porsche's life in China is not as easy as it used to be. The industry believes that Porsche's slow electrification is related to the decline in Porsche's sales in the Chinese market. Porsche announced the electric transformation in 2019. The first pure electric sports car, the Taycan, went on sale in September of the same year. The current price range is 89.80-1.838 million yuan, but its performance is mediocre in the car market. Terminal data show that only 4151 Taycan models were sold in China in 2023.

In addition, although electrification has become a consensus in the industry, Porsche has been under great pressure in the process of electrification transformation, especially in the relatively slow pace of the launch of electric vehicle products. The Macan EV, Porsche's second all-electric car, was not released until January. In this context, in the face of more and more new car-building forces in the field of high-end electric vehicles, Porsche is gradually seizing the market share of traditional luxury brands.

Now in China's luxury market, independent brands are also beginning to challenge Porsche's position, which is also one of the keys to Porsche's pure trams not being sold in the Chinese market. It should be noted that 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. However, Michael Kirsch, CEO of Porsche China, said in November last year that the sales and scale of Porsche in the Chinese market could not support Porsche's domestic production. As a luxury brand, Porsche will not simply mass production, but will pay more attention to customers' personalized options and special needs, and will continue to pay attention to and evaluate domestic products.

Of course, for the current Porsche, compared with domestic, Porsche's electric transformation is more urgent. According to the plan, Porsche plans to introduce no less than four new or significantly revamped models to the market this year, including Panamera, Macan, Taycan and 911, with a longer-term goal that more than 50 per cent of new cars delivered by 2025 will be electric vehicles; by 2030, more than 80 per cent of new cars delivered will be pure electric vehicles.

According to the latest figures, Porsche delivered 77640 new cars worldwide in the first quarter of 2024, down 4% from a year earlier, of which only 16340 were delivered in China, down 24% from a year earlier. The decline in sales also led to a sharp decline in Porsche's performance, with total revenue of 9 billion euros in the first quarter, down 10.8 per cent from a year earlier.

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