Luxury Chinese Brands Hit Porsche Hard!

In the first quarter of 2025, Porsche sold 71,470 vehicles, an 8% annual decline, with its biggest loss occurring in China. The German giant, which sold 16,340 vehicles in China last year, experienced a 41% drop this year, effectively melting away in its largest market.

It’s clear that the contraction in China is not temporary, as Porsche has begun closing stores and downsizing its operations. The brand’s presence in this massive market now hinges on its ability to launch competitive electric vehicles.

Another factor challenging the global giant is the significant investment by Chinese brands like BYD and Xiaomi in the luxury segment.

Xiaomi, a newcomer to the market, managed to outsell Porsche entirely last month with its first luxury model, the SU7 Ultra, in a short period of time.