Pain for Porsche in world’s largest EV market. Breaking down a torrid tale
- China accounted for around a quarter of all deliveries made by Porsche in 2023. But Chinese dealers at present are not a happy lot.
Porsche is being pummelled in China, the world’s largest electric vehicle (EV) market. Overall deliveries for Porsche in the country fell by as much as 15 per cent in 2023 and has fallen by 24 per cent in the first quarter of this year. And while the German sportscar maker is not the only one feeling the heat, the burn is quite real.
The Chinese automotive market holds tremendous potential for foreign brands but competition from local companies in recent years has heightened tensions for many. The stakes are higher when it comes to EVs in particular because globally, demand for battery-powered cars isn’t what it was till even a year ago. In China, the EV battle was always intense but with the overall pie not increasing in size as previously expected, the competition has become even more furious.
Also Read : Declining demand for electric vehicles forces automakers towards price cuts
Such is the situation that Bloomberg recently reported on Porsche reaching out to its Chinese dealers in order to ‘smoothen out relations.’ Referring to a press statement issued by the company, the report highlights how Porsche is working with its dealers in China to help synergize business strategies and customer service to the new reality of slower sales growth.
But will it be enough?
Local reports emerging from China indicate that Chinese dealers of Porsche have been asking the company for compensation because they are selling EVs at a loss. Many have also reportedly objected to the sales target set by the company for the year. This can be a big concern for Porsche as just last year, China accounted for around a quarter of all units it delivered the world over.
First Published Date: 29 May 2024, 18:00 PM IST
