On May 26th, it was reported by domestic media that Porsche dealers in China have initiated collective protests and boycotts, preparing to pressure the German headquarters.
The main conflict stems from the sharp drop in Porsche's sales in China, particularly in electric vehicles, leading to losses in car sales.
In order to meet their sales targets, Porsche China continues to push inventory onto dealers. However, due to the high prices of Porsche cars, this places significant financial pressure on the dealers.
Now, the dealers are using the tactic of halting new car deliveries to demand subsidies from Porsche headquarters and a change in executives. As of now, Porsche has not yet responded to these demands.
Other media reports indicate that before May Day, Porsche investors sent a letter to Porsche demanding compensation for the recent losses in new car sales. Currently, about 65% of dealer investors are not taking delivery of cars; the German headquarters has dispatched an investigative team to China to look into the issues in the Chinese market.
According to Porsche's financial report, the annual sales volume in the Chinese market in 2023 was 79,283 units, a significant drop of 15% year-on-year, making it the only region globally where Porsche experienced a decline in sales.
At the same time, China, which has held the title of "Porsche's largest single market" for many years, was overtaken by the North American market in 2023, with the latter achieving a full-year sales volume of 86,059 units, a 9% year-on-year increase.
In the first quarter of 2024, Porsche's sales in China dropped sharply to 16,340 units, a nearly 25% year-on-year decrease.
