*This content was translated by AI.
Porsche will significantly reduce its premium distribution network, centered on institutional investors, within the Chinese market. Starting June 30, Porsche will revoke official vehicle sales rights from four dealer companies in China. This move is part of a comprehensive network restructuring following the closure of showrooms in major cities. Porsche plans to consolidate its approximately 150 dealer locations in China down to about 80 bases, cutting 30% of its entire infrastructure.
According to the China Automobile Dealers Association, local premium imported car dealers are experiencing a severe "price inversion" phenomenon, selling vehicles at prices lower than factory ex-works prices. 81.9% of all automotive distributors face structural losses due to this. The total new vehicle gross margin has fallen to -25.5%. Currently, Porsche dealers are recording losses of approximately 20,000 yuan (about 4.56 million won) to 30,000 yuan (about 6.84 million won) for every vehicle delivered.
Performance deterioration continues. Porsche's 2025 global revenue has shrunk to 280.887 billion yuan (approximately 64.422 trillion won). Annual operating profit plummeted 92.7% year-on-year to 3.198 billion yuan (approximately 729.1 billion won). The operating profit margin fell to 1.1%. Global deliveries last year decreased by 10% to 279,449 units. In particular, sales in China, one of its largest markets, dropped sharply by 26% to 41,938 units.
The slowdown in sales has accelerated in 2026. First-quarter global deliveries fell 15% year-on-year to 60,991 units. During the same period, sales in the Chinese market declined by 21%. This is the result of local premium electric vehicle brands in China, equipped with high-voltage software ecosystems, rapidly absorbing Porsche's traditional demand.
To prevent cash outflow, Porsche has halted production of some electric vehicle LINE models, including the Taycan Sports Turismo. It has also launched a workforce reduction program affecting 3,900 employees globally. The headquarters engineering division has shifted its technological focus to regional battery intelligence technology development and digital cockpit advancement. Porsche intends to strengthen sound management through distribution network efficiency and digital architecture improvement rather than reckless market expansion.
Meanwhile, on the 30th, Porsche Korea (CEO Matthias Busse) signed a strategic agreement with Samsung Card to launch a Porsche-exclusive co-branded card and expand customer experiences for luxury brand clients.
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*This content was translated by AI.
