AutoBeta(AutoBeta.net)10/14 Report--

On October 11th, Porsche released its latest sales figures, showing global sales of 226026 vehicles in the first three quarters of 2024, down 7 per cent from a year earlier. In terms of market segments, Porsche sales rose 8 per cent year-on-year to 26838 vehicles in its home market, 1 per cent to 52465 vehicles in Europe (excluding Germany) and 3 per cent to 41972 in overseas and emerging markets. In terms of sales scale, Germany's largest single market is North America, which is down 5% from a year earlier, but sales of 61471 vehicles have surpassed those in China, which sold 43280 vehicles, down 29% from the same period last year. Porsche said the decline in sales in China was mainly due to continued tight price competition and Porsche's focus on value-oriented sales.

At present, Porsche has seven models on sale in the Chinese market, including Panamera, 718, Macan, Cayenne and 911, and pure trams including Taycan and Macan EV. Under the frenzied price offensive of Chinese car brands, Porsche, which is positioned as a luxury, is getting harder and harder to be favored. Take Macan as an example, the price of the EV version is 728000 yuan to 968000 yuan in China, while the starting price of the fuel version is as high as 578000 yuan.

How lonely it is now, how brilliant it was in the past. 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, the first decline since Porsche entered the Chinese market. Porsche sales in China fell again in 2023, with the year-on-year decline widened to 15 per cent. After entering 2024, with the price crackdown of Chinese car brands and the acceleration of the high-end market layout of new energy vehicle brands, the crisis of Porsche in the Chinese market has been further highlighted. Porsche sold 43280 vehicles in China by the end of the third quarter. Porsche accounted for less than 20% of Porsche's global sales, compared with more than 30% before 2023. This means that Porsche has fallen to the "altar" in the Chinese market and is beginning to be replaced by more and more high-end Chinese brands. Take the M9 as an example, its market price is 46.98-569800 yuan, which is not low among independent brands, which is enough to match the traditional luxury brand Mercedes-Benz BMW Audi, which sold a total of 108100 vehicles in the first three quarters.

In order to change the crisis in the Chinese market, Porsche replaced the leaders of the Chinese market. According to the Porsche announcement, Alexander Pollich will succeed Michael Kirsch as president and CEO of Porsche China from September 1, 2024, with overall responsibility for the brand's business in mainland China, Hong Kong and Macau. As for Mr Koch's transfer, it is widely believed to be directly related to the sharp decline in Porsche's sales in China.

According to the data, Koshmai has many years of experience in Asian market management and was the chief operating officer of Porsche in China from 2012 to 2016, responsible for sales, dealer development and direct business. Michael Kirsch has been president and CEO of Porsche Japan since 2019, having been responsible for Porsche's Korean market for the previous three years. In June 2022, Porsche announced that Michael Kirsch would succeed Jens Puttfarcken as president and CEO of Porsche in China, with overall responsibility for the China business.

In this era of great changes, personal strength seems negligible, it is also difficult to replace such a popular figure with rich experience in Asian market management, whether it can really ease Porsche's crisis in the Chinese market. The main reason for the decline in Porsche's sales in the Chinese auto market is due to the intensification of market competition and the increased sales pressure of car companies. In fact, Porsche is not only Porsche. Volkswagen, Mercedes-Benz, BMW and other established European automakers are facing a countercurrent in the Chinese market, and have lowered their annual performance forecasts. Earlier, Porsche cut its sales forecast for 2024 to between 39 billion and 40 billion euros ($43.56 billion), compared with a previous forecast of between 40 billion and 42 billion euros.

It is worth mentioning that apart from the Chinese market, Porsche has also suffered crises in other markets. Porsche will stop producing its Cayman and Boxster models at its parent Volkswagen Group plant in Osnabrueck, Germany, which is at risk of being shut down, according to the latest report. Starting from Easter in 2026, Porsche will transfer production of the two models to its main plant in Zuffenhausen, southern Germany.

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