Porsche Global Sales Drop to 6-Year Low in First Half, China Market Plunges 32%

German luxury sports car brand Porsche has released its global delivery figures for the first half of 2026. From January to June, the company delivered 122,300 vehicles worldwide, a 16% decline compared to the same period last year, marking the lowest level since 2020. All major markets experienced declines, with China suffering the sharpest drop of 32%, highlighting ongoing operational pressures amid global demand slowdown and a sluggish premium automotive market in China.

According to Porsche's data, North America remains the largest market, delivering 37,712 vehicles in the first half, down 13% year-on-year. Deliveries in the Chinese market totaled 14,501 units, a significant 32% drop from the previous year.

In Europe, deliveries in markets excluding Germany reached 30,278 units, down 14%; deliveries in Germany declined 6% year-on-year. Deliveries in overseas and emerging markets totaled 24,877 units, down 18%. Porsche stated that geopolitical tensions in the Middle East are also contributing to weak demand in overseas markets.

In addition to declining sales, Porsche continues to implement global organizational restructuring. Recent reports citing insiders indicate the company is considering cutting approximately 4,000 more jobs at its Zuffenhausen plant in Germany. The company had already agreed to eliminate 3,900 positions, and the new round of layoffs will primarily affect administrative and management departments, with the final scale expected to be finalized by the end of July. Porsche is also considering reducing capacity at its Weissach R&D center by around 30%.

In China, Porsche is also streamlining its dealer network. Porsche China recently announced that the Porsche Centers in Jining, Shandong; Huai'an, Jiangsu; and Nanning Xingning, Guangxi ceased dealership operations on June 30. The Wuhu Porsche Center in Anhui will stop new car sales on July 31, though after-sales service will continue.

Porsche China stated that, in response to the rapid transformation of China's automotive market and intensified competition, the company is advancing a 'quality over quantity' strategy, further integrating its dealer network while collaborating with partners to ensure uninterrupted after-sales service for vehicle owners.

According to Porsche China's official website, there are currently 116 authorized Porsche Centers across China. Nanning retains two locations, while Jining and Wuhu each maintain one.

In fact, Porsche China's dealer network adjustments have been ongoing for some time. At the end of 2025, the Zhengzhou Zhongyuan Porsche Center and Guiyang Mengguan Porsche Center announced temporary closures due to operational difficulties, drawing market attention. Operator Dong'an Holdings stated that due to overall economic slowdown, consumption downgrade, and automotive price wars, operations had become unsustainable, leading to the cessation of operations at these locations starting December 26, 2025.

About ten days later, Porsche China formally notified vehicle owners that, due to the termination of the authorization agreement, the Zhengzhou Zhongyuan Porsche Center officially exited the Porsche authorized dealer system on December 31, 2025.

In addition to reducing sales channels, Porsche has also ended its self-built charging network in China. The company previously announced that its self-built charging network and premium charging service would cease operations entirely from March 1, 2026, including approximately 200 high-power DC fast-charging stations. Public data indicates that the construction cost per station was approximately 1.2 to 2 million RMB.

Porsche's financial performance has also continued to deteriorate in recent years. In the first quarter of 2026, the company reported revenue of 8.4 billion euros, down 5.2% year-on-year; net profit attributable to shareholders was 399 million euros, down 22.8%; and global deliveries of approximately 61,000 new vehicles, a 14.7% decrease from the same period last year.

The company stated that the decline in first-quarter deliveries was primarily due to the discontinuation of the gasoline-powered 718 model series, the all-electric Macan being in its production ramp-up phase last year, and the U.S. elimination of tax incentives for new energy vehicles.

Deliveries in the Chinese market during the first quarter totaled only 7,519 units, down 21% year-on-year and a staggering 65% lower than in Q1 2023. In contrast, North America delivered 18,344 units, down 11%; Europe (excluding Germany) delivered 14,710 units, down 18% year-on-year.

Porsche noted that weak demand in China, combined with its continued adherence to a 'value-oriented sales strategy,' are the main reasons for the ongoing sales decline. Porsche's annual sales in China have declined from 93,300 units in 2022 to 41,900 units in 2025. The number of authorized dealers has also decreased from 150 to 114, and the company plans to further reduce this to 80 by 2026.

According to Porsche's 2025 financial report, annual revenue was 36.27 billion euros, down 9.5% year-on-year; sales profit plummeted from 5.64 billion euros the previous year to just 413 million euros, a 92.7% drop; and the sales return on sales fell from 14.1% to only 1.1%.

Porsche stated that the sharp decline in profitability was primarily due to approximately 3.9 billion euros in one-time special charges, including 2.4 billion euros for product strategy adjustments and organizational restructuring, around 700 million euros in additional battery-related costs, and about 700 million euros in impact from U.S. tariffs. Amid slowing global luxury car demand, intensifying competition in China, and rising EV transition costs, Porsche continues to face significant operational challenges.