Porsche’s global sales fell by 15 percent in the first quarter

Global sales of German luxury sports car manufacturer Porsche AG dropped by 15 percent year-on-year in the first quarter of this year to 60,991 vehicles. The automaker announced this today on its website. The decline was driven in part by the discontinuation of production of the Cayman and Boxster models with combustion engines and the elimination of tax benefits for electric and hybrid vehicles in the United States, according to DPA news agency.

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Porsche under pressure

Porsche board member Matthias Becker, who oversees sales and marketing, said that first quarter sales were in line with the company’s expectations. “In the coming months, we will focus on bringing the fully electric Cayenne to the market,” he added. According to the company, it will begin delivering these vehicles to customers in summer.

In China, the company’s sales in the first quarter plummeted by 21 percent to 7,519 vehicles, while in North America they declined by 11 percent to 18,344 vehicles. On the domestic German market, sales actually rose by four percent to 7,778 vehicles, but in the rest of Europe they fell by 18 percent, totaling 14,710 vehicles.

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Profits falling, pressure from China and electric vehicle transition intensifying

In the entire previous year, global sales fell by ten percent to 279,449 vehicles, primarily due to weak demand in China. Operating profit plummeted by 93 percent to 413 million euros last year, while revenue declined by 9.5 percent to 36.3 billion euros.

In addition to the drop in sales in China, the company’s performance last year was negatively affected by costs related to the slower transition from combustion engine vehicles to electric vehicles and the tariff policy of U.S. President Donald Trump.

Porsche went public on the Frankfurt Stock Exchange in 2022. However, German automaker Volkswagen remains its majority owner, which also includes Škoda Auto as a subsidiary.

Source: ČTK

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