Porsche cuts China showrooms amid dwindling demand
Weakening demand in the Chinese automotive market forces European manufacturers to make tough decisions. One example is Porsche, which plans to reduce the number of showrooms in China.
Porsche aims to save several billion euros by 2030, and CFO Lutz Meschke announced to journalists at a conference where a 41% decline in operating profit was reported.
Significant declines in the world's largest automotive market have 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 in China due to the decline in demand. This pertains to both the range of models and the number of representation offices.
"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 and that Porsche will significantly reduce its local dealership network.
