Porsche scales back in China amid waning automotive demand
Weakening demand in the Chinese automotive market forces European manufacturers to make difficult decisions. One example is Porsche, which will reduce the number of showrooms in the country.
Porsche aims to save several billion euros before 2030, said CFO Lutz Meschke to journalists at a conference announcing a 41 percent decline in operating profit.
Significant declines in the world's largest automotive market contributed to the poor results. "China is an incredible challenge, not just for Porsche," said Meschke. "In the future, we can no longer assume that China will return to where it was for European players," he added.
Meschke explained that the brand needs to adjust its sales structure due to the decline in demand. This affects the range of models and the number of showrooms in China.
"We're not giving up on the Chinese market but we need to face the facts," he said, adding that vehicle sales in China are expected to remain stagnant in 2025 compared to this year. Porsche will significantly reduce its local dealership network.
