Porsche records robust results for 2024
The German automaker reported an 8% decline in global sales for the first quarter compared to last year, with China — the brand’s largest single market — dragging down the numbers. Porsche’s sales in China plummeted by 42% year-over-year, a staggering drop that reflects both economic headwinds and a challenging EV transition.
In the US sales are more positive, for now. U.S. sales surged by 37% in the first quarter compared to the same period last year, making it the best-ever quarter for Porsche North America. That number is somewhat inflated by the fact that 2024’s first quarter was slowed by shipping delays and inventory shortages, but there’s no question that the automaker is riding a wave of momentum.
The revamped Macan is at the heart of that growth. Porsche’s small SUV has long been a volume driver, and the new all-electric version appears to be a hit right out of the gate. Nearly half of all Macans sold in the U.S. this quarter were EVs, and plug-in vehicles (including both battery electric and plug-in hybrids) accounted for nearly a quarter of Porsche’s total U.S. sales.
Despite the North American high, Porsche is facing strong headwinds elsewhere. The 42% sales slump in China is a major concern. That market has been central to Porsche’s growth strategy over the past decade, and the slowdown reflects broader challenges in China’s economy as well as fierce competition from local EV manufacturers.
Europe, Porsche’s home turf, is also seeing a downturn. Combined with China’s collapse, the result is a global picture that’s hard to sugarcoat. Porsche’s international decline underscores the risks of a staggered EV rollout — one that is accelerating in some markets while others lag or demand different powertrain options altogether.
Add in Trump’s Tariffs on cars and the future is defiantly mucky.
CEO Dr Oliver Blume and CFO Dr Jochen Breckner
2025 time for recalibration?
In 2025, in total, Porsche will invest an additional 800 million euros in rescaling and in its product portfolio and software and battery activities. In doing so, the company intends to increase its profitability and resilience in the short and medium term. “The extensive rescaling of the company as well as the investments we will be making will have a negative impact on the result for the 2025 financial year,” says Dr Breckner. “We are consciously setting out on a comprehensive recalibration and sustainably strengthening Porsche for the future.” In its forecast for 2025, Porsche is expecting market conditions to remain very challenging and for competition in China to intensify. Geopolitical uncertainties are also expected to persist with the new US administration. The current forecast for 2025 takes into account the current framework conditions. Further potential import restrictions and tariffs have not been factored in.
For the 2025 financial year, Porsche AG expects a Group operating return on sales in a range of 10 to 12 per cent based on the aforementioned assumptions. This is below the figure for the 2024 financial year. Besides the additional investments that are planned, the main reasons for this include reduced vehicle sales and an unchanged high cost level in the value chain.
