Porsche deliveries fall on weaker demand in China, model changes

AUTOMAKER Porsche’s deliveries declined 7 per cent in the first half of the year, as the German manufacturer introduced a number of new models and demand in China softened further.

The Volkswagen brand sold 155,945 vehicles in the first six months of the year, with growth in Europe unable to offset declines in China and North America, Porsche said on Tuesday (Jul 9).

Its sales slump in China accelerated, with deliveries there dropping by a third.

Porsche’s performance has deteriorated in the past months. The company reported the weakest result in the first quarter since listing in September 2022.

While the automaker has said this will likely mark the low point of the year, luxury buyers have also become choosier about spending, and demand in China is waning due to a prolonged real estate crisis and weaker economy.

In April, Porsche warned that introducing new models including the electric Macan and revamped 911 sports car will weigh on output and returns. Macan sales dropped 18 per cent, while shipments of the Panamera sport utility vehicle fell by a quarter. Sales of the electric Taycan slumped 51 per cent.

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Porsche expects operating margins of between 15 to 17 per cent this year, with group revenue up to 42 billion euros (S$61.4 billion). The manufacturer has guided for profitability to improve next year on the back of its updated model range.

“In 2024, we will put the most powerful Porsche product portfolio of all time on the road,” Porsche’s head of sales Detlev von Platen said. He added that the manufacturer will continue to offer combustion-engine vehicles alongside plug-in hybrid models and electric cars.

This will provide “an attractive offering for all customers – regardless of preferences and developments in the individual regions of the world”. BLOOMBERG