Even Porsche can’t find its lane in China as foreign automaker sales skid

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Shanghai: Foreign carmakers in China face a quick challenge at this year’s Shanghai Auto Show this year.

In recent years, the world’s largest car makers have lost the market share permanently as Chinese brand sales have increased. The heritage brand is spreading rapidly from low and medium -priced segments to luxury automakers, which are now struggling to compete with Chinese rivals with a chicken array of superior EV driving and high -tech interior features.

Germany’s Porsche – One of the world’s most powerful premium brands – has become the new poster for the lack of a legacy company in China for decades. In the first quarter, its sales declined by 42 %, after which the legendary sports car maker recorded the annual sale of 95,671 just four years ago-about one-third of its 2021 world total total.

Unlike other Vox Wagon Group Brands VW and Audi, which showcased five new electric models at the Shanghai Show, Porsche withdraws from the heritage of his combustion engine. The auto -maker unveiled different forms of his 911 -limited edition, surrounded by vintage examples of legendary sports car in the display. A light sign read: “There is no alternative”.

Chinese consumers are not buying it. Instead, they are buying alternatives to the future luxury and sports, including the growing future luxury and sports, including the Bayd Yang Wang Brand and Xiaomi, a electronics and appliances, who entered the car business just last year. Xiaomi’s first car, Electric SU -7 Sport Sidan, produced a sensation with a porch -affected style at a very low price.

When Xiaomi introduced an unconscious, 1,548-Herbs Power SU-7 ultra variety in February, which costs 529,900 yuan (72,591)), he said it received about 10,000 10,000 pre-order in two hours-which is slightly higher than the first quarter of all the porch models. According to the Porsche’s website, the least expensive Pursh 911 is sold in China at 1.468 million yuan, or, 201.170 and has 394 horsepower.

“There have been” porches “in China, the founder of the Advisory China Auto Insight, To Lee. Porsche is barely lonely among foreign carmakers to lose sales to Chinese rivals, which are not yet profitable in many cases.

Yu Xiang, Managing Director of Shanghai -based consultancy automotive Furry, said foreign car makers “understand the challenge”. “But they are still not moving so fast to solve it.”

In September 2022, investors’ confidence in the Porsche’s floor brand was so strong that, shortly after its initial public offer, its price passed through its big parents Volkswagen.

Shares of the automacker are now 44 % less than the first start of its stock market and 21 % year -on -year. Porsche’s China sales have declined to less than three straight years.

Volkswagen and Porsche CEO Oliver Bloom dismissed concerns over the reduction of sales of Porsche in China as they addressed reporters after unveiling the VW and Audi model on Tuesday before the Shanghai show.

Bloom said, “We don’t care about volume,” he added, adding that he is more concerned about keeping prices high – “suitable for Porsche” at this level.

He said, Bloom denied that Porsche fought directly with Chinese brands such as Xiaomi and Yangwang: “They are cool cars,” he said.

Bloom said the company could fully abandon the EV class in China, where more than half the sales cars are now EV and hybrid. Porsche sells two EVs here, technicians and mechanics. This is not reported to the country’s specific sales in terms of the country, but Bloom said the sales of Porsche’s EV in China are “relatively low”.

“In the next two to three years, we will see if Porsche is here as an electric brand,” he said.

The basic attributes that have historically made Porsche Porsche-for example 911 flat six cylinder engine sore throat, for example, is not as appealing as in China as in other Porsche markets.

“The concept of Porsche as the Golden Brand,” said Bo Yu, China’s Country Manager of Research Firm Jato Dynamics, said nothing for the younger generations in China. “

To replace the volume

Chinese automakers who are rapidly going to high -end parts care about sales volume.

Xiaomi sold 137,000 SU7 last year, which is more than just 57,000 of global sales of 310,718 more than the total year’s total of the total year of the year. Last month, Xumi raised the target of selling its vehicles from 2025 to 350,000.

Small Premium Chinese EV maker New 9866. HK last year increased sales by 38.7 % to 221,970 vehicles. CEO William Li said that nine expects to double its volume this year – call it a “crop year” – because it introduces nine new or latest EV models.

The rapid growth in the Chinese industry has directly translated the reduction of standing sales for foreign car makers in all segments.

“They will not get back to the market,” said Andrew Fellow, the world head of the Automotive and Mobility at the Technology Consultancy Star.

Some are fighting to stay relevant in China. Economically disturbed Nissan said in the show that he would invest $ 1.4 billion in China and launch 10 new vehicles to turn its sales slide in the coming years.

Nissan China Chief Stephen MA said, “The Chinese brands were very fast, to be honest.” In releasing compulsive models. “Now, I think we have a reset.”

Light space

General Motors is still resuming after recording the $ 5 billion allegations on Chinese operations in December. Its withdrawal efforts are largely dependent on its premium cadlaic brand, which showed four all -electric models in Shanghai. Bok’s GL8 has been a bright place for GM in China. It is a Chinese multi -purpose vehicle, or MPV, leader in the class, commonly known as Minunvan in the United States.