Porsche cuts China showrooms as auto market demand wanes
Weakening demand in the Chinese automotive market forces European manufacturers to make difficult decisions. One example is Porsche, which plans to reduce the number of showrooms in China.
11:19 AM EDT, October 28, 2024
Porsche aims to save several billion euros by 2030, said CFO Lutz Meschke at a conference announcing a 41 percent decline in operating profit.
Significant declines in the world's largest automotive market 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 to address the decline in demand. This affects the range of models and the number of representation offices in China.
"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. Porsche will significantly reduce its local dealership network.
