Porsche CEO Listed Chinese Market as Primary Challenge Upon 2024 Performance Report Release
In 2024, Porsche sold a total of 311,000 cars globally, a 3% decrease compared to the previous year. The company achieved an annual revenue of 40.1 billion euros, a 1.1% decrease year-on-year, with operating profits declining by 22.6% to 5.64 billion euros. On March 12, local time in Germany, Porsche released its 2024 financial report, disclosing the above information.
The Chinese market poses the biggest challenge for Porsche at present. In 2024, Porsche saw sales growth in all other major markets globally. For instance, in Germany and other European countries, Porsche sold 35,858 and 75,899 cars respectively, marking an 11% and 8% year-on-year increase. However, there was a significant decline in sales in the Chinese market.
In 2024, Porsche’s sales in China plummeted by 28% to 56,887 cars. In 2021, China was Porsche’s largest market with sales of 96,000 cars. In the following years, Porsche’s sales in China continued to decline, impacting the company’s global performance. Porsche CEO Oliver Blume listed three major challenges the company faced in 2024, with the Chinese market issue ranking first.
The other two factors affecting Porsche’s performance in 2024 were the slower-than-expected transition to electrification and disruptions in some supplier networks. Blume stated that Porsche had been actively promoting the transition to electrification, with the initial goal set for electric vehicle sales to account for 80% by 2030. To achieve this goal, Porsche made significant investments. However, it now appears that the original target is no longer feasible. Internal combustion engine models still have strong demand in some markets, leading Porsche to plan a slowdown in the electrification transition process. In order to reduce costs, Porsche plans to lay off 3,900 employees.
Regarding the poor performance in the Chinese market, Porsche CEO Oliver Blume believes that this is primarily due to the rapid changes in the Chinese market and Porsche’s failure to promptly adapt to changing consumer demands. He stated, “The annual demand in the Chinese market has dropped significantly, and the situation is severe. China is undergoing structural changes, and the development of our electric vehicles is slower than expected a few years ago.” Blume emphasized that Porsche will adhere to a “quality over quantity” strategy in the Chinese market and will not engage in price wars. The company is optimizing its dealer network, improving operational efficiency, and ensuring product competitiveness in core segments. However, he also admitted that Porsche has only achieved half of its goals in the Chinese market at present.
