Porsche eyes Korean recovery with new models, EV push
German carmaker plans to double Korea's service capacity in next five years
Porsche Korea CEO Mathias Busse has pledged to revitalize sales in Korea — one of the German automaker's top 10 markets — by offering a diverse lineup of vehicles, from powerful sports cars and family sport utility vehicles to all-electric models.
'Our strategy to boost sales in the Korean market this year is to introduce a wide range of products, fulfilling Korean customers' expectations of us, including the ultimate level of individualization,' said Busse in an interview with The Korea Herald on Thursday, marking his first media interview in Korea since being appointed CEO in September 2024. Last year, the Korean unit saw a 27 percent decline in sales volume, down to 8,284 units from the previous year.
While Busse did not disclose this year's sales target, he noted that the Korean market had already seen impressive performance in the first quarter of 2025. Notably, Korean customers have shown strong demand for Porsche's electric offerings, with the Taycan — its first all-electric vehicle — accounting for 30 percent of total sales during that period.
According to Busse, Korea consistently ranks between fifth and seventh among Porsche's global markets, depending on the timing of new model launches. In 2024, the top-selling model was the Cayenne SUV, followed by the Panamera sedan and the Taycan sedan, which closely competed with the 911 Carrera sports car.
Busse emphasized that Korean customers deeply value Porsche's unique blend of brand prestige, heritage and lifestyle — qualities exemplified by its Sonderwunsch program, a bespoke vehicle customization service. He added that appreciation for this program is even stronger in Korea than in Taiwan and Hamburg, Germany, where he previously served as CEO.
This year, Porsche Korea has launched four models: the new Panamera GTS sedan, a facelifted version of the Taycan electric sedan, the Macan electric SUV, and the iconic 911 Carrera 4 GTS sports car. Among them, the Macan and the Carrera are expected to drive strong demand in the first half of the year. Both models were highlights at the Seoul Mobility Show 2025, the nation's largest auto exhibition, held in Ilsan, Gyeonggi Province, through April 13.
Although Porsche AG recently announced it would revisit its electrification goal of converting 80 percent of its fleet to EVs by 2030 due to slowing global demand, Busse believes the Macan — its first fully electric SUV — will likely build on the Taycan's success in Korea. Describing it as 'the sportiest electric SUV in its segment,' Busse added that the Macan will offer enhanced convenience for Korean drivers, including the integration of the T-map navigation app, a widely used local platform.
The new 911 Carrera 4 GTS, unveiled for the first time in Korea, is the first model to feature Porsche's GTS (Gran Turismo Sport) technology with the innovative T-Hybrid powertrain. 'Boasting the strongest GTS in all attributes, the 911 is the most iconic car of our brand … the dream car when you think of owning a Porsche,' said Busse, adding that despite its performance pedigree, the model is also perfectly suited for daily driving.
In terms of enhancing customer experience, Busse committed to doubling Porsche Korea's service capacity over the next five years. In addition to Porsche AG's second-largest service center located in Seongsu and the newly opened Porsche Studio Hannam — both in Seoul — the company plans to build a new service center in Yeongdeungpo, Seoul, and open a showroom on Jeju Island.
hyejin2@heraldcorp.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
8 hours ago
- Korea Herald
Korean battery-makers push President Lee for direct subsidies
Korean firms seek bolder funding as Chinese rivals leverage robust government backing South Korean battery manufacturers are urging President Lee Jae-myung to act as they face slowing electric vehicle demand and intensifying competition from Chinese rivals increasingly dominating global markets. On May 31, three days before the presidential election, Lee wrote in a Facebook post, 'I will recharge the South Korean economy with K-batteries,' underscoring his belief that the battery industry is key to driving Korea's next economic leap. Lee's pledges included strengthening research and development to secure cutting-edge technologies such as all-solid-state batteries; introducing domestic production tax incentives; creating a "battery triangle belt" connecting the Chungcheong, Yeongnam, and Honam regions; increasing battery demand through energy storage systems; and nurturing the battery recycling industry. Calls for IRA-style subsidies While industry insiders are optimistic about the domestic tax incentives, they anticipate a more direct form of financial support from the government. Lee's tax benefit pledge offers tax breaks for companies producing and selling battery products in Korea, similar to the US Advanced Manufacturing Production Credit under the Inflation Reduction Act. However, AMPC also includes options like 'cash refunds' and 'third-party transfers' in addition to tax benefits. 'If we could receive cash returns, we'd have more flexibility to expand investments in global markets — particularly in the US, where rising tariffs on automobiles and parts are already dragging down the EV market,' said an industry source on condition of anonymity. The source emphasized that additional support measures are needed, pointing out that unlike China, which offers subsidies from direct funding to state-led R&D programs, the Korean government has only granted corporate tax credits. Under the Act on Restriction on Special Cases Concerning Taxation, the battery industry is designated a national strategic technology, making it eligible for approximately 15 percent and 30 percent tax credits on facility investments and R&D, respectively. However, these credits apply only to companies that are generating taxable profits. In the first quarter, Korea's top three battery makers — LG Energy Solution, Samsung SDI, and SK On — all reported operating losses, even when factoring in benefits from AMPC. As a result, they are likely ineligible for domestic tax breaks, despite having collectively borrowed 49.6 trillion won ($36.5 billion) for large-scale investments both at home and abroad. Chinese surge Experts suggest that even with the battery sector's strategic importance, direct subsidies from the Korean government remain unlikely. 'Korea has traditionally been wary of direct funding due to the associated risks and concerns over misusing taxpayer money,' said Kim De-jong, a business professor at Sejong University. 'In contrast, while China provides massive subsidies, it often gains substantial control over the company's management and operations.' Kim added that more feasible alternatives to direct subsidies could include offering discounted rates on electricity and water for domestic production facilities. Meanwhile, Chinese battery giants CATL and BYD have strengthened their grip on the global EV market. According to SNE Research, CATL and BYD held market shares of 38.1 percent and 17.3 percent, respectively, as of the latest period, up from the previous year. LG Energy Solution ranked third but saw its share fall from 12.3 percent to 10.2 percent. SK On and Samsung SDI also experienced declines, with market shares dropping to 4.3 percent and 3.3 percent, respectively.
Korea Herald
13 hours ago
- Korea Herald
Samsung chief visits Songdo to boost bio push
Samsung Electronics Chair Lee Jae-yong visited Samsung Biologics' campus in Songdo, Incheon, on Monday, a move interpreted by industry observers as an indication of his commitment to nurturing the bio sector as the group's next major growth engine following semiconductors. According to industry sources, the chair toured the Songdo campus of Samsung Biologics alongside key executives, including Samsung Electronics Vice Chair Jung Hyun-ho and Samsung Biologics CEO John Rim. During the visit, he reportedly inspected production facilities and process equipment and held strategic discussions with senior management. Since assuming leadership of Samsung, Lee has emphasized the importance of developing the bio business into a future growth pillar on par with semiconductors. In 2022, he attended the completion ceremony of Samsung Biologics' Plant 4 on the Songdo campus. Samsung Biologics surpassed 4 trillion won ($2.9 billion) in consolidated annual revenue last year, becoming the first Korean biopharma company to reach the milestone. In a strategic move to bolster competitiveness, the company announced on May 22 the spinoff of Samsung Bioepis into a newly established holding company, Samsung Epis Holdings. Under the reorganization, Samsung Biologics will continue focusing exclusively on its core CDMO operations. Samsung Epis Holdings will serve as an R&D-driven holding company responsible for biosimilar development, new technology investment and global strategy planning. By structurally separating its two growth pillars — CDMO and biosimilars — Samsung aims to build a more agile and responsive system that can better meet the demands of customers, investors and the broader market.
Korea Herald
13 hours ago
- Korea Herald
Korean biopharma firms gear up for record presence at BIO USA 2025
Samsung Biologics to showcase CDMO scale-up, digital transformation with largest Korean booth Korean pharmaceutical and biotechnology companies are gearing up for a strong presence at the 2025 BIO International Convention (BIO USA), one of the world's largest biopharma exhibitions, which will take place in Boston starting June 16. Organized annually by the Biotechnology Innovation Organization, BIO USA rotates among major US biotech hubs and serves as a premier global platform for industry leaders to explore strategic partnerships and collaborations. This year's convention, held under the theme 'The World Can't Wait,' will run from June 16 to 19 at the Boston Convention & Exhibition Center. The event is expected to draw more than 9,000 companies from 88 countries and over 20,000 professionals from across the biopharma sector. Roughly 80 Korean companies and organizations will participate by setting up booths. Samsung Biologics Samsung Biologics, one of the largest exhibitors, will mark its 13th consecutive year taking part in the event. It will set up a 167-square-meter booth at the entrance of the exhibition hall — the area with the highest foot traffic — to maximize visibility and draw visitor attention. The booth will showcase the company's expanding contract development and manufacturing organization capabilities through high-tech features such as an LED display wall and interactive touchscreens. These elements are designed to communicate Samsung's advanced service offerings with a strong emphasis on digital transformation in biopharma. Highlights will include a comprehensive look at Samsung Biologics' latest advancements, such as the recent launch of its fifth manufacturing plant, boosting its total production capacity to 784,000 liters — among the highest in the world. The company will also spotlight its capabilities in multi-specific antibody development, its newly introduced antibody-drug conjugate services and AI-driven operational systems, all of which support its goal of becoming a global top-tier CDMO. Other leading Korean CDMO and CMO firms — Celltrion, SK Biopharmaceuticals and Lotte Biologics — will also be attending, competing for new contracts against major players from the US, China and Japan. Celltrion, participating for the 16th year, will operate its own booth to promote products and engage with potential partners, while SK Biopharmaceuticals plans to focus on increasing global brand recognition through a series of high-level business development meetings. Lotte Biologics will showcase its ADC production facilities at the Syracuse Bio Campus and unveil the development roadmap for its Songdo Bio Campus Plant 1, scheduled to begin commercial operations in 2027. Although Daewoong Pharmaceutical and Hanmi Pharmaceutical will not operate a booth at the event, they will participate through business meetings, aiming to strengthen their global presence by showcasing ongoing research and development efforts in new drug discovery. The Cha Vaccine Institute will use the event to promote its shingles (CVI-VZV-001) and hepatitis B (CVI-HBV-002) vaccines, focusing on licensing and joint development opportunities. The institute aims to build partnerships across Southeast Asia, the Middle East, Europe and Latin America to explore co-development and tech transfer prospects. The Cha Vaccine Institute will also participate in the company presentation sessions and the Korea Pavilion pitching event, where it will outline its research pipelines and market strategies. 'We will introduce our proprietary adjuvant platform and vaccine development capabilities at BIO USA, aiming to turn this exposure into real business outcomes,' said Yeom Jeong-seon, CEO of the Cha Vaccine Institute. Meanwhile, Korea BIO will play a significant role at the convention. The Korea Pavilion will feature a record 51 Korean companies, and Korea BIO will facilitate discussions with the US BIO association on key issues, including customs regulations, drug pricing and supply chain resilience, while also providing a partnering platform for domestic companies. According to an industry insider, Korea stands to benefit significantly from shifting global dynamics at this year's BIO USA. 'As US-China tensions reshape the global biotech supply chain, Korean firms that can quickly adapt to geopolitical shifts are well-positioned to secure major deals. Their strong technological base and aggressive manufacturing scale-up efforts make them attractive alternatives to Chinese firms facing regulatory hurdles, potentially positioning Korea as a central beneficiary in the new global order,' the official said, on condition of anonymity.
