Porsche's Decline in China is Severe, Yet US Sales Have Reached an Astonishing New Peak | Carscoops

      Global sales for Q1 decreased by 8 percent overall, despite growth in North America and emerging markets.

      Porsche's sales in China fell by 42% last quarter, leading to job losses and dealer closures.

      New leadership has been appointed as Porsche seeks to improve its declining performance.

      Sales in North America soared by 37%, achieving a record high of 20,698 units last quarter.

      Global automotive brands rely heavily on their regional performance, and currently, Porsche is thriving in North America while facing difficulties in China. The latest sales report highlights the stark difference: robust demand in the U.S. and Canada is countered by a significant downturn in one of its key international markets.

      While tariffs from the Trump administration may dampen optimism going into Q2, the main concern appears to be the brand's increasing vulnerability in China, where stronger domestic competitors and a challenging economy are eroding its previously loyal customer base.

      In China, Porsche's Q1 sales decreased by 42% compared to the same quarter last year. Local EV manufacturers and premium competitors are steadily gaining market share with more affordable and refined options, successfully impacting Porsche's sales.

      From January to March 2025, Porsche sold only 9,471 vehicles in China, a notable decline from 16,340 sales in Q1 2024. The company attributed this decrease to "the ongoing tense economic situation" and a "focus on value-oriented sales, aimed at balancing supply and demand," which indirectly indicates they are selling less than before and attempting to present this situation as a strategic choice.

      China's decline has already led Porsche to reduce its dealership network in the country. Furthermore, both the head of Porsche in China and its local sales director have been replaced. Matthias Becker, who previously oversaw Porsche’s overseas operations in growth markets, is now leading Porsche in China, and the company likely hopes he can improve the situation.

      In terms of Q1 2025 global sales, there is positive news for Porsche as well.

      North America Achieves Record Performance

      Fortunately for Porsche, there was some positive news in the latest quarter's sales results. Sales in North America increased by 37% in the first quarter, rising from 15,087 units last year to 20,698 this year. The United States, accounting for 18,884 of those sales, is by far its largest market in North America, marking a 40.6% increase compared to Q1 2024. In fact, Q1 2025 represents Porsche's highest ever first-quarter sales figures, surpassing the previous record from Q1 2023 by 8.1%. However, with tariffs now enacted, this might be the last piece of good news for Porsche this year.

      Sales of the 911, 718, Panamera, Cayenne, and Macan rose in the last quarter, while the electric Taycan saw a decline, with sales dropping from 1,247 in Q1 2024 to 1,019 units.

      Global Sales Still Declining Overall

      Despite the strong performance in North America and a modest 6% growth in emerging markets, Porsche's global figures remain down. The company sold a total of 71,470 vehicles worldwide in Q1 2025, reflecting an 8% decrease from the same timeframe last year.

      In Germany, Porsche's sales fell by 34% to 7,495 units. Sales across the rest of Europe decreased by 10% to 18,017 vehicles. Only the "Overseas and Emerging Markets" region recorded growth, rising to 15,789 units from 14,895 in Q1 2024.