The Chinese market is sluggish, with reports indicating that Porsche Taycan is reducing production due to declining sales

Porsche's first all-electric sports car, the Taycan, once became popular, but as time passed and competition increased, Taycan's sales have been declining in the past few years. Recently, there have been reports that Porsche plans to reduce Taycan production to cope with the situation of low sales. In 2019, Porsche launched its first all-electric car, the Taycan. By 2021, the Taycan had become Porsche's best-selling model in the European market, even surpassing the gasoline versions of the 911 and Panamera. In 2021, Porsche delivered 41,296 Taycans, more than double the delivery volume in 2020. However, this explosive sales growth did not continue. Porsche sold 34,801 Taycans in 2022, down from 40,629 sold last year. In the first quarter of this year, Taycan sales dropped by 54% year-on-year. It is worth noting that in February of this year, Porsche launched an upgraded 2025 version of the Taycan, which saw such a significant decline in sales. The new Taycan has a longer range, faster charging speed, and more powerful performance, and was expected to boost sales. However, according to the German media Stuggarter Zeitung, Porsche still plans to reduce Taycan production at its Zuffenhausen factory. Reports indicate that Porsche is negotiating with the union to adjust Taycan production to single-shift operation, with no plans for layoffs. Porsche hopes to achieve a "structural change" in Taycan production in this way. To maintain its luxury brand image, Porsche does not stimulate sales by lowering prices like other car manufacturers such as Tesla. While there are no plans for layoffs, this may only apply to permanent employees. Several weeks ago, Porsche chose not to renew contracts for hundreds of temporary workers. Porsche CEO Oliver Blume believes that the Porsche brand can turn the tide. He stated that Porsche is in a "V-shaped" sales cycle. 2024 will be the year with the most new models introduced in Porsche's history, with up to four new cars set to be launched. In addition to the upgraded Taycan, Porsche will also launch new versions of the 911 and Panamera, but perhaps the most anticipated is the all-electric Macan. In May of this year, Porsche started production of the Macan EV at its upgraded Leipzig factory, with the first batch of Macan EVs expected to be delivered to customers in the second half of this year. Blume mentioned that as early as March this year, the Macan EV received 10,000 orders, "and these customers haven't even test-driven the car yet." IT Home noted that Porsche's sales decline is mainly concentrated in one of its most important markets, China. In the first quarter of this year, Porsche's sales in China dropped by 24%. It is reported that due to difficulties in establishing a strong presence in China, the world's largest electric vehicle market, the German luxury car manufacturer is facing immense pressure In contrast, the all-new Porsche Macan electric version is more likely to be favored by Chinese consumers, hence being seen as a "beacon of hope". According to reports, this electric SUV from Porsche will use batteries from CATL, which will help reduce costs and make it more competitive