New strategy for China's Porsche sales force

China is a key market for any automaker, and Porsche is looking for ways to stay relevant

Mainland China is the world's largest automobile market, almost as big as the US and European markets combined. Global automakers have enjoyed decades of prosperity due to the slow family car industry, but this dominance seems to be coming to an end. Although some people think of an unparalleled car, Porsche cannot feel the pain.

Porsche sales in China drop sharply for the second consecutive year

In 2023, Porsche has bad news in sales in China: Delivery fell 15% year-on-year, which is a market that automakers simply don’t see any downturn. Unfortunately, this trend has entered its second year. Porsche's economic downturn has fallen even higher, providing less than 57,000 cars across the country and setting a record for the brand's decline. Detailed with the concerns and prospects in the press release, it sounds like Porsche wouldn't have foreseeed things going to get easier either. They “expect that market conditions remain challenging and intensify competition in China.” If you believe in Porsche, there is further geopolitical uncertainty, an imminent trade war cloud, and a growing domestic auto manufacturing framework.

Porsche's strategy future

Give up is not really in line with the spirit of the Porsche brand in motorsport. “China remains at the heart of Porsche's global strategy,” the company's CEO Oliver Blume said in a brief question and answer. The brand is adhering to the “value exceeds quantity” strategy, and he recognizes that “Chinese customers have a highly personalized need and a strong preference for the digital ecosystem.” This translates loosely into an emphasis on customizability and technology. “At the same time, we believe in the core values ​​of our brand.” Blume believes Porsche vehicles are endorsed through their capabilities and personalization. In a separate press release, the brand vowed to “balance demand and sales,” which could indicate a focus on lower levels of manufacturing to align demand and costs.

Interestingly, Porsche's overall word is very similar to last year. When considering the 2024 market, Detlev von Platen, member of the Executive Committee of Sales and Marketing, expects “China’s market conditions will remain challenging.” Maybe the brand isn't hub enough. More likely, competition only becomes more convincing for Chinese buyers, even buyers with higher income levels. After all, when options like Xiaomi Su7 (no doubt, “taycan at home”) start out better than performance although The prices are low, and it's clear that some shoppers may not even consider Chinese Porsches.

The final thought

All in all, Porsche seems to be considering a more boutique than the ones already offer. The brand has relied heavily on its performance and quality legacy, and these two things are the only thing that separates it from its more accessible Chinese competitors. Whether it is enough to seriously shake them is another story.