Porsche collapses in China

German sports car maker Porsche AG reported a 28% drop in sales in China in 2024, as persistent weakness in the world’s largest car market hits German manufacturers. Porsche, majority-owned by Volkswagen, sold 56,887 vehicles in 2024 in China, up from 79,283 in 2023. The decline weighed on global sales, which fell 3% to 310,718 vehicles compared to 2023. This despite growth in other markets, including an 11% increase in Germany. Chinese consumers are increasingly reluctant to spend on luxury goods due to faltering economic growth caused by the country’s real estate crisis. “Overall, we have proven to be extremely robust in a difficult market environment in 2024,” Porsche board member Detlev von Platen said in a statement. Porsche said in October it would reduce its dealer network in China, citing persistent weak demand. Mercedes-Benz sales also fell in 2024, the automaker said last week, due to a 7% decline in China, while the Volkswagen brand’s China sales fell 8.3% to 2 .2 million vehicles.