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Porsche committed to China amid market challenges

chinadaily.com.cn | Updated: 2025-03-17 15:35
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Oliver Blume, chairman of the board of management of Porsche AG, speaks at the 2025 annual press conference. [Photo provided to chinadaily.com.cn]

China is central to Porsche's global business strategy, said Oliver Blume, chairman of the board of management of the German sports car maker.

"It is absolutely clear," said Blume, who is also the top executive at Porsche's parent company Volkswagen, "even if we are indeed having to deal with a number of challenges at the moment."

Blume made the remarks in an interview at the Stuttgart-based carmaker's annual press conference last week.

Porsche is seeing its sales fall in China, which until recently had been its largest market globally. Last year, 56,887 units were delivered in the country, now its second largest single market, down 28 percent year-on-year.

"However, we have shown great resilience and are sticking to our 'value over volume' strategy," said Blume.

He said Porsche has an extraordinary brand and an attractive and young product portfolio, both of which have many fans in China.

Porsche has been stepping up efforts in terms of personalization and digital ecosystems in China to meet local customers' expectations of new luxury in the age of electrification.

Meanwhile, the carmaker will stay true to its motorsport genes and unique heritage.

"I am convinced that we will continue to be successful in the future with this mix of tradition and innovation," said Blume.

Globally, Porsche delivered 310,718 vehicles in 2024, only slightly below the previous year, as it set new records in four other sales regions including the United States and Europe.

Its sales revenue stood at 40.1 billion euros ($43.62 billion) in 2024, a single percentage point below the previous year's figure, and its operating profit decreased to 5.6 billion euros from 7.3 billion euros in 2023.

The carmaker's operating return on sales amounted to 14.1 percent, down from 18.0 percent in the previous year.

"In 2024, Porsche has proven that we are highly profitable even in challenging times and that we are financially robust," said Chief Financial Officer Jochen Breckner.

Porsche's bestseller in 2024 was the Cayenne with 102,889 units being delivered, ahead of the Macan, 82,795 units, and the 911, standing at 50,941 units.

Of its 2024 deliveries, 27 percent of the new vehicles delivered were fully electric vehicles or plug-in hybrids.

Porsche said the expectation for 2025 is in a range between 33 and 35 percent electrified vehicles, including 20 to 22 percent fully electric.

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