The Chinese market is shaking Porsche.
Once indispensable to premium buyers, the German brand now suffers from the rise of local manufacturers who are better equipped, more affordable, and more in tune with consumer expectations. The result: a 28% drop in sales in 2024, and a Taycan struggling against the new wave of Chinese electric vehicles. This situation raises a broader question: could Porsche face the same fate in the United States and in Europe?
Read more:
- We were lied to! Forget the Aston Martin DB5 and DBS—this Bentley was the real James Bond car
- This Japanese giant unveils an engine that is neither electric nor gasoline-powered and will be the most efficient ever launched in mass production with 59.8% efficiency
A spectacular decline in the Chinese market
For years, Porsche thrived in China, benefiting from a market hungry for European luxury cars. But in 2024, the drop was brutal. The Taycan, once the brand’s flagship in the electric segment, saw its sales plunge by nearly 50%. The problem? Local competition. Xiaomi, once a smartphone giant, has entered the automotive market with the SU7 Ultra, an electric sedan that directly rivals the Taycan… but at less than half the price. This model, sold for the equivalent of $112,000, offers up to 1,527 horsepower and even beat the Taycan Turbo GT on the track. While Porsche sold 21,000 Taycans worldwide, Xiaomi sold 100,000 SU7s in China alone.
Chinese buyers have changed their mindset.
Where a Porsche once symbolized prestige, local brands now offer models that are just as high-performing, loaded with advanced technology, and much more accessible. The allure of the Porsche badge is no longer enough.
A technological lag that weighs heavilyIf Porsche is losing ground, it’s not just because of pricing. Chinese consumers want ultra-connected cars, packed with advanced driver assistance systems and fully integrated into their digital ecosystem. Despite its performance, the Taycan falls short in these areas. There is no advanced autonomous driving, its multimedia interface is considered outdated, and its smartphone integration remains too limited. Meanwhile, the Xiaomi SU7 offers:
- A 56-inch head-up display with augmented reality.
- An instant transfer system from smartphone to multimedia screen.
- Advanced autonomous driving thanks to LiDAR.
For Chinese brands, innovation comes first. The consumers are young, connected, and favor technology over the prestige of a badge. Porsche, like other Western brands, has underestimated this transition.
Could Porsche be threatened in the west?
For now, Porsche remains a benchmark in the United States and Europe. Its image is strong, its history in motorsports (GT, WEC) resonates with enthusiasts, and its sporty DNA continues to attract buyers. But for how long? We have already seen the market accept Tesla and Rivian as serious competitors. Why wouldn’t Chinese brands follow the same path? Ford’s CEO, Jim Farley, recently admitted he was so impressed by the Xiaomi SU7 that he no longer wanted to return it after trying it out. If tomorrow a Chinese model offers performance similar to a Taycan or an electric Macan, with more technology and at half the price, Porsche risks losing some of its non-enthusiast buyers, especially those looking for a high-end electric vehicle without a strong brand attachment.
The market is evolving quickly. In China, electric cars will overtake combustion models by 2025—about 10 years ahead of the West. The rise of China is inevitable, and European manufacturers must adapt to avoid a catastrophic scenario.
This article explores the decline in Porsche sales in China in the face of local competition, the technological lag of the brand relative to Chinese consumer expectations, and the risks of a similar situation in the West if Porsche does not react quickly.
Images : © Porsche / © Xiaomi
