Porsche’s deliveries declined 7 percent 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 Group brand sold 155,945 vehicles through June, with growth in Europe unable to offset declines in China (-33 percent) and North America (-6 percent), Porsche said Tuesday. China makes up 20 percent of Porsche’s global sales.
Porsche’s performance has deteriorated in the past months, with the company reporting the weakest result in the first quarter since listing in September 2022. While the maker of the 911 has said this is likely to be the low point of the year, luxury buyers have become choosier about spending, with demand in China waning due to a prolonged real estate crisis and weaker economy.
The Cayenne SUV was the most popular model, with 54,587 sales, an increase of 16 percent. In contrast, sales of the full-electric Taycan fell by 51 percent, to 8,838, amid a general cooling of the EV market.
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 percent, while shipments of the Panamera sedan fell by a quarter.
Porsche said this week that it is sticking to its timetable for the transition of some models to electric vehicles, despite a recent weakness in demand for battery-powered cars.
Porsche expects margins of 15 to 17 percent this year, with group revenue of as much as €42 billion ($45.5 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 in a statement, adding that the manufacturer will continue to offer combustion-engine vehicles alongside plug-in hybrid models and electric cars.
Article Source: Porsche first-half sales slump, as China falls 33% | Automotive News Europe (autonews.com)
