BERLIN (Reuters) – German sports car maker Porsche AG reported a 28% tumble in 2024 China sales on Monday, as persistent weakness in the world’s largest car market hit German carmakers.
Porsche, majority-owned by Volkswagen (ETR:VOWG_p), sold 56,887 vehicles in 2024 in China, versus 79,283 in 2023.
The drop weighed on global sales, which were down 3% at 310,718 vehicles compared with 2023. This came despite growth in its other markets, including an 11% rise at home in Germany.
Chinese consumers are increasingly reluctant to spend money on luxury goods on faltering economic growth resulting from a real estate crisis in the country.
“Overall, we have shown ourselves to be extremely robust in a challenging market environment in 2024,” Porsche’s board member Detlev von Platen said in a statement.
Porsche said in October it would pare back its dealership network in China, reflecting persisting weak demand.
Mercedes-Benz (OTC:MBGAF)’s core car sales also fell in 2024, the carmaker said last week, hurt by a 7% drop in China, while China sales for the Volkswagen brand fell 8.3% to 2.2 million vehicles.