Where would Western luxury automakers be today without the Chinese market? Prestige brands have been riding the gravy train for years, but all good things must come to an end. The rise of domestic automakers has severely impacted demand for international brands; ask Porsche. Its sales in China slipped by 28 percent in 2024 to 79,283 cars. The first quarter of this year has been even worse, with demand plummeting by 42 percent to 9,471 units.
Porsche’s downfall isn’t because the 911 suddenly became undesirable. The real issue stems from an inability to fend off Chinese competition in the EV segment. Xiaomi and others sell much cheaper electric cars, some of which boast more power than a Taycan or a Macan. Zuffenhausen is fully aware of the problem, and rather than retaliating with price cuts or new, more affordable models, it might just call it quits.
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