Porsche AG reported a steep decline in its 2024 sales figures in China, showing a notable drop of 28% year-over-year. The company sold 56,887 vehicles in China during 2024, a dramatic fall from 79,283 sales in the prior year. This decline also mirrored a 3% drop in global sales, totaling 310,718 vehicles for the year.

Key Contributors to Sales Decline:

• Consumer Demand Weakness: The main factor behind this slump remains persistent weakness in the Chinese economy. A struggling real estate market and broader economic challenges have led Chinese consumers to be less inclined to purchase luxury items, including high-end vehicles from Porsche.
• Global Sales Dynamics: Although Porsche experienced a downturn in China, the brand recorded some growth in other regions, including an 11% increase in its home market of Germany. However, the substantial decline in China impacted overall global sales negatively.
• Strategic Company Adjustments: Detlev von Platen, a board member of Porsche, acknowledged the need for resilience in these challenging conditions. He stated that the company plans to reduce its dealership network in China due to ongoing weak demand.

This slowdown follows similar trends noted by other German automotive manufacturers. Mercedes-Benz and Volkswagen each reported downturns in their sales figures in China for 2024.

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