Porsche warns of difficult year as China, U.S. markets weaken

Porsche AG reported a 6% drop in global deliveries for the first half of 2025, citing intensifying competition in China and slowing momentum in the U.S. While North American sales rose 10%, the growth rate significantly cooled from Q1’s 37% surge. 

Meanwhile, in China, Porsche’s second-largest market, sales plummeted 28%, reflecting pressure from local EV makers. Porsche executives expect continued market headwinds for the remainder of the year. 

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Here’s why it matters:

Porsche’s performance signals broader challenges for luxury import brands navigating the recently imposed tariffs, slowing U.S. demand, and growing EV competition, primarily in China. Dealers tied to imported high-end brands may face softer sales, supply chain disruptions, and pricing pressures in the months ahead. 

Key takeaways:

• Global sales decline 6%
  Porsche’s total vehicle deliveries dropped as demand in key international markets weakened, though the result showed improvement from Q1.

• U.S. growth slows sharply
  North American deliveries grew just 10% in Q2, down from 37% growth in Q1, as tariff impacts and import-only operations dampened momentum. 

• China sales plunge 28%
  Intensifying competition from domestic luxury and EV manufacturers, especially BYD, is pressuring foreign brands like Proshe and Mercedes. 

• Macan leads Porsche lineup
  Sales of the Macan SUV rose 15%, with nearly 60% of units being all-electric, indicating growing traction for EVs in Porsche’s lineup. 

• 911 hit by model transitions
  Global sales of the iconic 911 fell 9% due to ongoing model updates, temporarily affecting performance in the brand’s sports car segment. 

Despite ongoing global challenges, Porsche remains committed to navigating market headwinds through product innovation and targeted growth strategies.