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Time of India
09-07-2025
- Automotive
- Time of India
Porsche warns of challenging H2 after 6% sales decline
Porsche AG warned of a tough road ahead for sales this year after a slowdown in the lucrative US market and persistent weakness in China. The sportscar maker's global deliveries fell 6 per cent in the first half of the year, an improvement on the sharper decline recorded in the first quarter. In North America, where Porsche relies solely on imports, growth slowed to 10%, from a 37 per cent surge in the three months through March. 'We expect the environment to remain challenging,' Matthias Becker, Porsche's board member for sales and marketing, said Tuesday in a statement. The company cited fierce competition in China as the main factor behind its 28 per cent sales slump in the world's biggest auto market. European luxury-car makers are losing momentum in the US and continue to fall behind in China, where local brands are taking over. Mercedes-Benz Group AG on Monday said its sales dropped 10 per cent in the second quarter after President Donald Trump's tariffs curbed deliveries in the US and China. Porsche is one of the manufacturers most exposed to the levies because it lacks a factory in the US. Addressing its performance in China, the Volkswagen AG-controlled brand pointed to fierce competition in the luxury and electric-vehicle segments that are increasingly dominated by homegrown manufacturers led by BYD Co. Global sales of the 911 fell 9 per cent due to the phased introduction of updated versions. The Macan sport utility vehicle was the brand's top performer, with sales up 15 per cent in the first half — almost 60 per cent of them the all-electric version.
Mint
08-07-2025
- Automotive
- Mint
Porsche Warns of Challenging Second Half After 6% Sales Decline
(Bloomberg) -- Porsche AG warned of a tough road ahead for sales this year after a slowdown in the lucrative US market and persistent weakness in China. The sportscar maker's global deliveries fell 6% in the first half of the year, an improvement on the sharper decline recorded in the first quarter. In North America, where Porsche relies solely on imports, growth slowed to 10%, from a 37% surge in the three months through March. 'We expect the environment to remain challenging,' Matthias Becker, Porsche's board member for sales and marketing, said Tuesday in a statement. The company cited fierce competition in China as the main factor behind its 28% sales slump in the world's biggest auto market. European luxury-car makers are losing momentum in the US and continue to fall behind in China, where local brands are taking over. Mercedes-Benz Group AG on Monday said its sales dropped 10% in the second quarter after President Donald Trump's tariffs curbed deliveries in the US and China. Porsche is one of the manufacturers most exposed to the levies because it lacks a factory in the US. Addressing its performance in China, the Volkswagen AG-controlled brand pointed to fierce competition in the luxury and electric-vehicle segments that are increasingly dominated by homegrown manufacturers led by BYD Co. Global sales of the 911 fell 9% due to the phased introduction of updated versions. The Macan sport utility vehicle was the brand's top performer, with sales up 15% in the first half — almost 60% of them the all-electric version. More stories like this are available on
Yahoo
28-04-2025
- Automotive
- Yahoo
Porsche Cuts Profit Outlook as US Tariffs, EV Slowdown Bite
(Bloomberg) -- Supply Lines is a daily newsletter that tracks global trade. Sign up here. Newsom Says California Is Now the World's Fourth-Biggest Economy NYC's Congestion Toll Raised $159 Million in the First Quarter At Bryn Mawr, a Monumental Plaza Traces the Steps of Black History New York City Transit System Chips Away at Subway Fare Evasion US Cricket Deepens Bet on Texas With HQ Shift From California Porsche AG said its profit margin will slip into single digits this year, with the luxury-car maker warning about US tariffs and higher costs from weak electric-vehicle adoption. Porsche expects return on sales to fall to as low as 6.5%, down from a previous projection of at least 10%, the German manufacturer said on Monday evening. The Volkswagen AG-controlled brand also lowered its revenue outlook to as low as €37 billion ($42.2 billion), from between €39 billion and €40 billion previously. Tepid EV demand means Porsche will no longer independently expand production of high-performance batteries with its subsidiary Cellforce, it said, with one-off battery costs rising to €1.3 billion this year. US tariffs hit sales in April and will also affect performance in May, Porsche said, but the company was unable to estimate any effects beyond those months. President Donald Trump's decision to impose 25% tariffs on imported cars puts Porsche in a bind. The US recently surpassed China as its top sales market, buoyed by robust demand for its Macan and Cayenne sport utility vehicles. But the company has no production capacity in North America and is entirely reliant on imports from Europe. Automakers across Europe are trying to navigate the rising trade tensions. Ferrari NV is raising prices for some of its models in the US by as much as 10%, while Mercedes-Benz Group AG is considering withdrawing sales of its entry-level vehicles from the market. Renault SA said last week it will likely delay the US introduction of its Alpine sports-car brand. Beyond the chaos of Trump's trade war, dwindling demand in China has forced Porsche to reset its strategy. The brand has swapped out key board members and agreed to cut jobs in Germany to lower costs. Porsche's vehicle sales in China plummeted 42% in the three months through March, to its worst quarterly result in the Asian nation since 2013. Intense competition from domestic carmakers led by BYD Co. is cutting deeper into the market share of Western manufacturers. Porsche cited 'challenging market conditions' in the country on Monday. Facing lukewarm demand for its EVs, Porsche already decided to take an €800 million hit this year to expand its product portfolio with more combustion-engine and plug-in hybrid models. In March, the company lowered its medium-term return-on-sales target to between 15% to 17%, from as much as 19% previously. --With assistance from Ryan Beene. (Updates with additional detail throughout.) As More Women Lift Weights, Gyms Might Never Be the Same Why US Men Think College Isn't Worth It Anymore Healthy Sodas Like Poppi, Olipop Are Drawing PepsiCo's and Coca-Cola's Attention Eight Charts Show Men Are Falling Behind, From Classrooms to Careers The Mastermind of the Yellowstone Universe Isn't Done Yet ©2025 Bloomberg L.P. Sign in to access your portfolio
