Once, Porsche was the "hard currency" in China's luxury car market, with cars hard to come by and price increases being the norm. But now, this market myth is rapidly collapsing.

Recently, Porsche's official release of global delivery data for the first quarter of 2026 was like a deep-water bomb, causing a severe shock in the industry. The data shows that Porsche's global delivery volume in the first quarter was only 61,000 vehicles, a year-on-year decline of 15%.

As one of its core markets, China has become the market with the largest global decline: only 7,519 vehicles were delivered in the first quarter, a year-on-year plummet of 21%. Meanwhile, compared to the peak of 21,365 vehicles in 2023, Porsche's quarterly sales in China have fallen from the clouds, shrinking by more than 60% in three years, which can be described as a "ankle chop."

In fact, Porsche's sales in China have shown a gradual downward trend for several years. Data shows that since 2022, Porsche's sales in China have declined year by year, with sales from 2022 to 2025 being 93,300 vehicles, 79,300 vehicles, 56,900 vehicles, and 41,900 vehicles, representing year-on-year declines of 2.5%, 15%, 28%, and 26%, respectively.

In July 2024, Porsche China urgently changed its leadership, appointing Alexander Pollich as the new president and CEO of Porsche China, officially taking office on September 1, 2024, hoping that the new management team could reverse the market collapse. As of today, it has been nearly two years since the leadership change, and Porsche, which has fallen from its "peak" to the "mud pit," still has not truly emerged from its predicament.

Data Avalanche: Sales Plummet 21% in the First Quarter

Recently, Porsche officially released its global delivery report for the first quarter of 2026, and the cold data was like a deep-water bomb, causing severe shocks in the luxury car industry.

The data shows that in the first quarter of 2026, Porsche delivered only 60,991 new cars globally, a 15% decline from 71,470 vehicles in the same period of 2025, marking a new low for global deliveries in recent years. Meanwhile, almost all major core markets globally have lost ground: North America delivered 18,344 vehicles, a year-on-year decline of 11%; Europe (excluding Germany) delivered 14,700 vehicles, a year-on-year decline of 18%; overseas and emerging markets delivered 12,129 vehicles, a year-on-year decline of 20%; only the German domestic market saw a slight increase of 4%, delivering 7,778 vehicles, becoming the only core region with positive growth globally.

However, the Chinese market has become Porsche's core market with the largest global decline and the worst performance. In the first quarter of 2026, Porsche's delivery volume in China was only 7,519 vehicles, a year-on-year drop of 21% from 9,471 vehicles in the same period of 2025, setting a near-record low for quarterly sales in recent years More striking is the three-year comparative data: In the first quarter of 2023, Porsche's sales in China reached a peak of 21,365 units, making it a core engine of global growth at that time. In just three years, sales in the first quarter of 2026 decreased by 13,846 units compared to the same period in 2023, shrinking by over 60%, which can be described as a "ankle cut."

Looking back at Porsche's golden era in China, it peaked in 2021 with sales of 95,700 units, making the Chinese market once the largest single market for Porsche globally, contributing over 30% of global sales, and can be said to be a core pillar of its profits.

However, since entering 2022, Porsche has fallen into a continuous decline for four years in China. Data shows that since 2022, Porsche's sales in China have declined year by year, with sales from 2022 to 2025 being 93,300 units, 79,300 units, 56,900 units, and 41,900 units, with year-on-year declines of 2.5%, 15%, 28%, and 26%.

From a high point of over 7,000 units per month, it has fallen to the current low of an average of 2,500 units per month. Porsche's market in China has plummeted from the clouds, and such a cliff-like decline is rare.

According to Zhou Ting, director of the VIP Research Institute, "Porsche is globally recognized as a luxury car brand, but in recent years, by launching lower-priced models, offering discounts at the end, and providing implicit benefits, it has effectively lowered prices, and the pricing system has completely collapsed; at the same time, all luxury brands have entered the Chinese market, especially electric vehicle brands that have risen strongly and invaded the luxury car market, further squeezing Porsche's survival space; the consumer group's perception is also changing, with high-end users no longer blindly believing in traditional luxury car brands, but instead valuing tone, exclusivity, and value matching. The combination of multiple factors has ultimately led to a significant slowdown in Porsche's growth in China, entering a state of deceleration."

Regarding the continuous decline in Porsche's sales in China, Porsche China CEO Pan Licheng recently responded in an interview, stating, "The market situation is indeed quite difficult. We have seen quite a few changes, which affect the entire automotive market, including the high-end market, so it is obvious. However, Porsche's strategy is 'value over volume,' so we are not obsessed with numbers. What we want to ensure is that we have a strong brand that people truly desire. You can see at our booth that we have not only new cars but also our racing cars, which truly indicate that we have 'heritage.'"

He further stated, "We were born from motorsport, so we strive to amplify our brand advantages, keeping people's desire for Porsche alive. Therefore, I do not pay much attention to the fluctuations in short-term sales. We are here for long-term development; this is a marathon, not a sprint. This is a 24-hour race, just like at Le Mans (24-hour endurance race). Sometimes you feel great, and sometimes it is full of challenges, but in the end, you will find that the most important thing is to stay true to the essence of the brand."

Who "killed" Porsche?

Porsche's development in China "losing speed" is not a coincidence In 2024, multiple models of Porsche faced sales difficulties. To clear inventory and stimulate terminal sales, the market price system began to loosen, and the price reduction wave quickly spread from first-tier markets. Among them, a dealer in Shenzhen offered a price for the Macan that fell below 400,000 yuan, equivalent to a 40% discount, breaking Porsche's long-held price bottom line. Additionally, models such as the Taycan and Panamera also saw rare large-scale promotions.

However, the price cuts did not achieve the desired effect of increasing sales volume, and Porsche failed to stabilize the downward trend. According to reports, as sales plummeted sharply, Porsche's dealer network in China is undergoing a large-scale reshuffle. By the end of 2025, the total number of closed Porsche dealerships in China has exceeded 40, with the number of stores reduced from 150 to 114, resulting in a withdrawal rate of 30%. According to Porsche's plans, this number will continue to decrease, with an expected adjustment to around 80 by the end of 2026.

In July 2024, Porsche China urgently changed leadership, with Pan Lichi leading a re-adjustment of strategies in China, hoping to reverse the market collapse. As of today, Porsche China has completed nearly two years of leadership change. However, from the latest quarterly sales data, the downward trend has not yet been curbed.

Zhang Xiang, a visiting professor at the Yellow River Science and Technology College, analyzed for the "Next Generation Car Research Institute" column that Porsche's continuous decline in sales in China can be attributed to four structural dilemmas:

First, there is an imbalance in product structure, with excessive reliance on fuel vehicles and a serious lag in new energy layout. Porsche's main products are still primarily fuel vehicles, with very few electric new energy models, and a long-term lack of technological iteration, mostly continuing "old models." In terms of core indicators such as intelligence, range, and energy consumption, they are significantly behind the mainstream market level, resulting in insufficient overall competitiveness and low cost-effectiveness.

Second, the pressure of policy and compliance costs in the Chinese market has intensified. The industrial policies in the Chinese market continue to guide the automotive industry towards new energy transformation, and the market share of traditional fuel vehicles, especially large-displacement luxury cars, is rapidly shrinking. As a high-emission car manufacturer, Porsche needs to spend a large amount of money each year to purchase new energy credits to offset negative credits, which is one of the reasons for its significant profit decline.

Third, the marketing model is outdated and has not adapted to the trend of younger consumption. Currently, in the Chinese automotive market, especially among high-end new energy brands, there is a general adoption of direct sales experience stores and supermarket displays, which are more in line with the car-buying habits of younger consumers. However, Porsche still mainly relies on the traditional dealer 4S store system and has not kept up with changes in channels and marketing methods in a timely manner, clearly "falling behind" in this regard, leading to a continuous loss of potential customers.

Fourth, the competitive landscape has undergone dramatic changes, with domestic high-end new energy brands represented by Hongmeng Zhixing successfully entering the million-level luxury car market, directly competing with Porsche. This pressure not only targets Porsche but also poses a general impact on traditional luxury brands such as BBA (Benz, BMW, Audi)