In 2024, for Porsche, China's sales ranking will drop from the world's largest market to third.
On March 12, Porsche released its latest financial report showing that in 2024, the company's sales revenue will be 40.083 billion euros, a year-on-year decrease of 1.1%; net profit will be 3.595 billion euros, a year-on-year decrease of 30.3%; return on sales will be 14.1%, lower than 18% in 2023. 310,000 new cars were delivered worldwide, a year-on-year decrease of 3%, of which 56,900 were delivered in the Chinese market, a sales decrease of 28%.
On the same day, Porsche announced that as part of its efforts to improve efficiency, it plans to cut about 3,900 jobs by 2029. Of these, about 1,900 jobs will be cut through natural turnover, restricted recruitment and voluntary agreements. It will also cut 2,000 employees by not renewing fixed contracts after they expire.
Porsche AG Chairman Oliver Blume (left) and Porsche AG Executive Board Member and Head of Finance and IT, Joseph Bai (right)
"Although the Chinese market is undergoing profound changes and we cannot predict what the future will be like, Porsche remains cautiously optimistic about the Chinese market," said Oliver Blume, Chairman of the Porsche Global Executive Board, at the earnings conference. "In the future, we will continue to focus on and deepen our presence in the Chinese market. Of course, it will take some time to further adjust and optimize the local organizational structure and dealer network, and we need a certain amount of patience. We will face new challenges in the Chinese market in the future, but we believe that the value of Porsche will remain high."
"In 2025, we believe that the structural adjustment of the Chinese market will continue." Porsche Global Executive Board Member and Head of Finance and Information Technology, Bai Yuhan, said that it is not possible to give an accurate forecast for the sales target in 2025, but it is expected to be slightly lower than that in 2024. The company expects the return on sales to further decline to 10%-12% in 2025, and predicts that the mid-term target of 15%-17% return on sales will be achieved by the end of 2030.
In addition, considering that the transition period to electric vehicles is longer than expected, Porsche said that the company still regards electrification as a core technology for the future, but will continue to provide a three-pronged product portfolio of internal combustion engines, pure electric vehicles, and hybrid vehicles. "We will return our attention to internal combustion engines and hybrid vehicles, and will first focus on core models such as the 911," said Blume.
Bai Yuhan introduced that in 2024, the 911 model accounted for 16% of the sales share. Although the specific profit margin data of each model cannot be disclosed, the performance of the 911 is amazing and there is still huge potential.
Blume revealed, "We have set ourselves an ambitious goal to achieve more than 80% of new cars sold by 2030 to be pure electric sports cars."
