Published by Global Banking & Finance Review®
Posted on January 16, 2026
3 min readLast updated: January 19, 2026
Add as preferred source on GooglePorsche's 2025 sales dropped 10%, the worst since 2009, due to weak demand in China and EU regulations affecting combustion models.
By Amir Orusov and Rachel More
Jan 16 (Reuters) - German sports car maker Porsche suffered its biggest annual sales decline in 16 years in 2025, joining fellow Volkswagen subsidiary Audi and Mercedes-Benz in struggling with weak demand and fierce competition in China.
The company delivered 279,449 vehicles last year, down 10% overall compared to 2024. That was its steepest drop since 2009, when the global economic crisis hurt demand around the world, and Porsche sales slumped 24% year on year.
Porsche pivoted back to more bankable combustion engine models and delayed the launch of some all-electric vehicles last year as demand sagged, at a cost of 1.8 billion euros to earnings.
In China, sales slumped 26%, hit by challenging market conditions in the luxury segment, as well as intense competition for fully electric models, the carmaker said, as it scales back its dealer network there.
Porsche underperformed peers BMW and Mercedes whose own sales fell 12.5% and 19% respectively in China in 2025.
Its shares were down 1.3% after the sales data.
EU REGULATION DEALT BLOW IN EUROPE
In Germany and the rest of Europe, sales fell by 16% and 13%, respectively, Porsche said.
It attributed the decline in Europe to supply gaps for the 718 and Macan combustion engine models due to EU cybersecurity regulations, which came into force in July 2024 requiring carmakers to adapt their offerings to secure software.
The new regulations meant the ICE model of the best-selling Macan was no longer available in 2025, creating a higher baseline in 2024, said Matthias Schmidt, European autos market analyst at Schmidt Automotive.
SALES FLAT IN NORTH AMERICA, 'PULL-FORWARD' EFFECT
Porsche outperformed Mercedes and Audi in the North American market, where its sales remained flat compared with a 12% decline for both German peers in 2025.
"Porsche likely benefited from a pull-forward of inventory registrations across the US to mitigate against tariffs," said Schmidt.
Like Audi, Porsche has no U.S. production site, making it exposed to U.S. tariffs, which were expected to cost the company roughly 700 million euros in 2025.
Porsche said 22.2% of worldwide deliveries in 2025 were fully electric models while 12.1% were plug-in hybrids.
"This puts the global share of fully electric vehicles at the upper end of the stated target range of 20% to 22% for 2025," it said.
(Reporting by Rachel More and Amir Orusov; Editing by Miranda Murray and Elaine Hardcastle)
Delivery performance refers to the efficiency and effectiveness of a company in delivering its products to customers, often measured by the number of units sold within a specific timeframe.
Electric vehicles (EVs) are automobiles that are powered by electric motors instead of internal combustion engines, using electricity stored in batteries.
Plug-in hybrids are vehicles that combine a conventional internal combustion engine with an electric motor, allowing them to run on both gasoline and electricity.
EU cybersecurity regulations are laws and guidelines established by the European Union to protect data and ensure the security of networks and information systems.
Market share is the portion of a market controlled by a particular company or product, expressed as a percentage of total sales in that market.
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