Porsche's 2024 China Sales Fall by 28%

Porsche's 2024 China Sales Decline by 28% Amid Market Challenges

BERLIN (Reuters) - German sports car maker Porsche AG reported a 28% tumble in 2024 China sales on Monday, as persistent weakness in the world's largest car market hit German carmakers.

Porsche, majority-owned by Volkswagen, sold 56,887 vehicles in 2024 in China, versus 79,283 in 2023.

The drop weighed on global sales, which were down 3% at 310,718 vehicles compared with 2023. This came despite growth in its other markets, including an 11% rise at home in Germany.

Chinese consumers are increasingly reluctant to spend money on luxury goods on faltering economic growth resulting from a real estate crisis in the country.

"Overall, we have shown ourselves to be extremely robust in a challenging market environment in 2024," Porsche's board member Detlev von Platen said in a statement.

Porsche said in October it would pare back its dealership network in China, reflecting persisting weak demand.

Mercedes-Benz's core car sales also fell in 2024, the carmaker said last week, hurt by a 7% drop in China, while China sales for the Volkswagen brand fell 8.3% to 2.2 million vehicles.

(Writing by Miranda Murray; Editing by Janane Venkatraman)