Chinese smartphone giant turned automaker Xiaomi proudly announced last week that its SU7 Ultra sedan has lapped the Shanghai International Circuit almost 1.5 seconds faster than the previous record holder, the Porsche Taycan Turbo GT. But Porsche’s China crisis goes far beyond ranking second on a racetrack leader board.
For years, Western automakers have relied on China to provide growth and a massive chunk of their revenue. But now local car buyers are increasingly rejecting long-established European brands in favor of domestically-produced, Chinese-branded cars. Porsche is far from the only Western car company taking a hit, but it’s taken a really big one.
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