Porsche could give up selling electric cars in China
Where would Western luxury car manufacturers be today without the Chinese market? Prestige brands have been riding the wave of success for years, but all good things come to an end. The rise of domestic automakers has severely impacted demand for international brands: Just ask Porsche, for example.
The Zuffenhausen-based company's sales in China fell by 28 percent to 79,283 vehicles in 2024. In the first quarter of this year, the outlook was even bleaker: demand plummeted by 42 percent to 9,471 vehicles. Porsche 's decline isn't due to the 911 suddenly becoming undesirable. The real problem lies in the lack of effective countermeasures against Chinese competition in the electric car segment.
Image by: Porsche
Xiaomi and other domestic brands sell much cheaper electric cars, some of which are more powerful than a Taycan or a Macan . Porsche is well aware of the problem. But instead of responding with price cuts or new, cheaper models, the Zuffenhausen-based company could potentially raise the white flag in China and give up.
At Auto Shanghai 2025, Porsche CEO Oliver Blume admitted that the company could stop selling electric cars in China in the foreseeable future: "We will see in the next two to three years whether Porsche exists here as an electric brand." The CEO, who also heads the Volkswagen Group, admitted to Automotive News that sales of Porsche BEVs in China are "relatively low."
The company's top management made it clear that Porsche has no intention of increasing sales and will keep prices at a level appropriate for Porsche. Consequently, the new Cayenne EV, which will be launched later this year, will not be cheap, nor will the electric 718 successor, which is scheduled to follow the large SUV.
Blume doesn't see Xiaomi, with its 1,548 hp SU7 Ultra, as a direct competitor, as it's a cheaper electric car that can't match the "driving capabilities" of a Porsche—even though the Xiaomi SU7 Ultra recently proved otherwise on the Nordschleife, at least based on its lap time . Xiaomi's Taycan battle car costs 529,900 yuan (about €64,000) in China, while the base Taycan with 402 hp is offered at a much higher price of 918,000 yuan (€111,000).
Unlike BMW , Mercedes , Audi , and even Jaguar , Porsche hasn't invested in China-specific models. Global players have poured money into long-wheelbase sedans and SUVs to improve legroom for rear passengers. A missed opportunity on Porsche's part?
Audi recently went a step further by introducing the confusing name AUDI (written in capital letters) as a pure electric sub-brand .
Fun fact: The Jetta from VW is also its own brand there .
Speaking of VW, the company plans to launch 20 plug-in hybrids and electric cars in China by the end of 2027. Porsche apparently has no plans to release any localized products. The new combustion-engine crossover, intended to replace the Macan, would make sense, but isn't expected until the end of the decade.
Other traditional premium manufacturers have adapted to maintain their market share. Relevant examples include stylish minivans such as the Lexus LM , the Buick GL8, and the Volvo EM90 .
Further developments on the Chinese market:
However, as Chinese brands have easier access to raw materials and benefit from lower labor costs, it's becoming increasingly difficult for international companies to compete. Beating them on their own turf now seems nearly impossible.
Some automakers have come to terms with the new, harsh reality and instead opted to strengthen local alliances. As the saying goes, "If you can't beat them, join them."
motor1
