- Porsche’s sales in China dropped 29% during the first nine months of 2024.
- China was Porsche’s largest market for eight consecutive years before this decline.
- The company plans to close nearly 40 dealerships in the country by the end of 2026.
Big changes are afoot for Porsche’s business in China. While the nation was once its single most important market, a drop in demand for its models is forcing it to close roughly 30% of its local dealerships as Chinese consumer sentiment shifts and sales of locally-produced vehicles from homegrown brands continue to surge.
Porsche currently operates 138 dealerships across China, but the boss of Porsche China, Alexander Pollich, has revealed this will be cut to approximately 100 by the end of 2026. The carmaker isn’t just consolidating its network of dealers but will also optimize its local investments, abandoning areas where it can’t achieve long-term profitability and doubling down on regions that perform well, including Shanghai and Beijing.
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“By the end of 2026, the number of Porsche Centers in China will be consolidated to approximately 100,” Pollich said in an investor call. “Our key purpose out of optimization is to improve the overall network profitability, resulting in a multi-win situation (among Porsche, dealers and customers).”
Pollich didn’t say if Porsche had already decided which dealerships would close. What he did confirm is that the brand would support dealer partnerships, providing financial relief and offering trade-in and wholesale assistance, China Daily reports.
For eight consecutive years, China was Porsche’s biggest single market. In 2021, Porsche sold 95,671 vehicles in the country, easily eclipsing the 86,160 cars it sold across all of Europe and the 70,025 that were delivered in the U.S. Sales slipped 2% in 2022 but were still strong at 93,286 units, again beating out Europe where 92,197 cars were sold over the same period. However, Porsche’s Chinese deliveries declined in 2023 to 79,283 cars. Things are even worse this year, as sales dropped 29% through the first nine months.
“We never shy away from competition,” added Pollich. “Amid the challenges of today’s market, we remain confident in the resilience of the market and are steadfast in our commitment to Porsche’s core values of sportiness and performance. It is only sensible to adjust the dealer network respectively. It will not only safeguard network profitability but also guarantee the luxurious and exclusive service to our customer.”
In addition to reducing the size of its local dealer network, Porsche is introducing more connected technologies to its existing showrooms and will add a function to the Porsche app and WeChat that allows customers to monitor the production and delivery of their vehicles in real-time. Porsche is also establishing a local technical division that’ll create features aimed at tech-savvy buyers.
