As the cost of living crisis continues, auto giants such as Porsche continue to see weak sales in Chin as competition intensifies significantly and consumers continue to shy away from big-ticket purchases.
Porsche’s third-quarter sales recently fell to their lowest numbers in a decade for this period.
Sales of the Taycan electric vehicle model decreased by 47%, primarily due to lower demand for electric vehicles (EVs) in Europe and the United States and issues specific to the Taycan model.
This includes manufacturer recalls in June and October of this year due to issues with brake hoses and battery modules.
From January to September this year, Porsche delivered 43,280 vehicles in China, a 29% decrease from the first nine months of 2023. Porsche delivered 61,471 vehicles in North America, also down 5% compared to the same period last year. .
However, in Europe, the company delivered 52,465 vehicles despite the reduced performance of the Taycan model. This figure does not include Germany.
However, Porsche AG spokesperson Detlev von Platen remained optimistic. “Customer demand remains at a solid level and customer feedback on new models has been very positive. As product availability increases, we remain optimistic about our last spurt in 2024,” he said in a statement. “There is,” he said.
“The market environment remains challenging around the world. However, with the youngest model range in our history and a very balanced sales structure across our sales regions, we are in a strong position. Our Values Our focused sales strategy has proven its worth and will continue to be the cornerstone of our actions.”
Porsche’s parent company Volkswagen is facing a similar situation, with sales down 15% in the third quarter of this year.
related
“After nine months and in a still challenging market environment, Volkswagen Group deliveries are down around 3% compared to the same period last year,” Volkswagen senior executive Marco Schubert said in a statement.
“We have grown significantly and increased our market share in North and South America. In Europe, we have been able to maintain relatively stable vehicle deliveries to customers, but we are facing significant headwinds from the market. .
“The competitive situation in China is particularly fierce and this is the main reason why our deliveries are declining globally.In the coming months, a number of attractive new models across all brands will be introduced to our company worldwide. However, in order to continue to succeed in this environment in the future, especially in Germany, an improved cost base is essential.
story continues
Rapid increase in demand for EVs in China deals further blow to European automakers
While EV demand has slowed significantly in Europe, the situation is very different in China, especially in the face of increased tariffs on Chinese EV imports.
Domestic EV makers such as BYD and Geely have seen a significant surge in demand, hitting European automakers’ profits and sales in China hard.
This is mainly because Chinese EVs are significantly cheaper than European cars, while also meeting demand for more environmentally friendly cars.
It also comes with more features and offers a more modern design compared to European car manufacturers.
As the trade war between the EU and China becomes increasingly tense, multiple sources say the Chinese government may impose sanctions on European automakers with large production facilities in the country, including BMW, Audi and Mercedes-Benz. observers speculate.
This has led to more customers avoiding these brands and a corresponding decline in sales in China, forcing them to adapt accordingly and focus on offering electric vehicle products domestically.
