Electric vehicles are a tough business anywhere in the world, but the situation in China is brutal for outside automakers. Chinese brands produce a staggering variety of EVs, making it hard for foreign companies to compete, even Porsche. The company saw a significant slide in sales last year, dropping by 28 percent, and 2025 promises to be even more challenging.
Porsche has seen a 42 percent decline in demand in 2025 so far, but it’s not because the brand’s sports cars aren’t appealing. The German automaker’s electric Taycan and Macan are having a tough time gaining a foothold in China because so many of the country’s domestic automakers produce EVs costing much less. The problem has become significant enough for Porsche executives to consider abandoning its electric vehicle efforts there.
Earlier this year, Porsche CEO Oliver Blume said, “We will see in the next two to three years whether Porsche exists as an electric brand here.” He also noted that the brand’s electric sales in China are “relatively low.” That said, the automaker has made a big effort to show that it’s not chasing sales as the final goal and wants to sell vehicles at a level that is “appropriate for Porsche.”
Porsche hasn’t created China-only models like some of its competitors, which could be hurting its cause. It’s also good to point out that, while Blume doesn’t view most of China’s domestic automakers as direct Porsche competitors, at least one offers a Taycan-killing EV for more than $50,000 less than the German company’s pricing.
[Images: Porsche]
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