Porsche is engaging in discussions with its Chinese dealers to address strained relations caused by weaker sales of electric vehicles (EVs), prompting the auto industry to reevaluate the transition away from combustion-engine cars. The German automaker is in talks with its Chinese retailers to adapt their business strategies and customer service approach to changing market conditions, according to a statement. While Porsche did not provide specific details on a new direction, the company stated that both parties plan to work more closely together.
Porsche, along with other Western automakers, has witnessed a decline in their share of China’s EV market as local competitors have increased their offerings and gained a stronger foothold. Additionally, with China’s economy impacted by a real estate crisis, overall demand for EVs has weakened, leading to price cuts that have eaten into the profits of manufacturers and dealers.
According to Chinese media reports, some Porsche dealers in China are now seeking compensation for selling EVs at a loss and have also raised objections to this year’s sales targets. Last year, China accounted for approximately a quarter of Porsche’s overall deliveries.
Porsche’s deliveries in the Chinese market fell by 15 per cent in 2023, and sales have continued to suffer this year, with the brand posting a 24 per cent decline in the first quarter. Deliveries to North America also fell by 23 per cent in the same period, primarily due to a customs-related delay in shipping.
Tensions between Chinese distributors and German automakers are not unprecedented. Volkswagen’s Audi brand resolved a dispute with its Chinese retailers in 2017 by providing undisclosed compensation payments. In 2015, BMW paid $820 million to its retailers in China to help cover losses.
In other news, Porsche has unveiled its first street-legal hybrid version of the iconic 911 sports car, the 911 Carrera GTS. This hybridisation comes as part of a mid-cycle facelift for the seventh-generation 911, which also brings aerodynamic and design changes to the exterior, additional equipment, and a refreshed interior. The highlight addition is the new T-Hybrid petrol-electric powertrain system.
The setup features an all-new turbocharged 3.6-litre six-cylinder boxer engine, an electric motor mounted on the gearbox, and a compact liquid-cooled lithium-ion battery. Combined, they provide the restyled rear-wheel-drive 911 Carrera GTS – which sits below the hardcore Turbo and GT3 models and will be the first to receive this drivetrain – with 541 horsepower and up to 610 Nm of torque. These outputs represent increases of 60 horsepower and 40 Nm over the previous model, which utilised a twin-turbocharged 3.0-liter six-cylinder engine.
Porsche claims a 0.4-second reduction in the 0-100 km/h acceleration time, now at 3.0 seconds. The company also quotes a 0-160 km/h time of 6.8 seconds (0.9 seconds quicker than before) and a 0-200 km/h time of 10.5 seconds (1.1 seconds quicker), along with an incremental increase in top speed to 312 km/h.