Porsche is closing 30% of its China dealerships to cut costs after a 56% sales drop. Learn how the brand plans to revamp its R&D and launch new hybrid crossovers. Stay informed.
Porsche China announced a sweeping restructuring that will see 30% of its dealership network shuttered by the end of 2026. The move aims to curb operating costs after the luxury automaker suffered a steep sales decline in the world’s largest car market.
Dealership Reduction Plan
CEO Pan Liqi confirmed that the company will cut its dealer count from roughly 150 locations in 2024 to just 80 by the close of 2026. The consolidation targets under‑performing outlets and seeks to streamline service and sales operations.
Sales Plunge Triggers Change
In 2025 Porsche delivered only 41,938 vehicles in China—a 26% drop from the previous year and a 56% plunge from its 2022 peak of 95,671 units. The sustained slump prompted the brand to reassess its growth strategy.
Dealership Scandals and Customer Fallout
The contraction follows a series of high‑profile disputes involving major dealers such as Porsche Trịnh Châu and Quý Dương. Financial strain forced several outlets to cease operations, leaving customers stranded with unreturned deposits and locked vehicle registration documents.
Investing Savings into Shanghai R&D
Pan Liqi said the cost savings from the downsizing will be redirected to Porsche’s first integrated research and development centre in Shanghai, accelerating local innovation and technology development.
2026 Strategy: Quality Over Quantity
Looking ahead, Porsche will prioritize “quality over quantity,” accepting lower sales volumes while focusing on brand revitalisation. The company is also scouting Chinese partners for smart‑driving solutions to localise technology in its imported models.
New Models on the Horizon
Despite the challenges, Porsche’s China chief dismissed rumours of a domestic manufacturing plant. Instead, the brand plans to launch two new crossover models in the B‑ and D‑segments later this year, offering both internal‑combustion and plug‑in hybrid powertrains to regain market momentum.
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