Porsche reports significant plunge in European and Chinese deliveries
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German car giant Porsche recorded a steep fall in Chinese and European deliveries in the first quarter of 2025, partly caused by the discontinuation of certain models, which did not comply with EU cybersecurity laws.
Sales plunged 42% in China, to 9,471 units, while sales dropped 10% in Europe, excluding Germany, to 18,017 units in the first quarter. German deliveries plummeted 34% to 7,495 units in the first three months of the year.
Porsche AG's shares were up 0.27% on Wednesday morning on the Frankfurt stock exchange. The company's shares, however, are down 26.6% so far this year.
Porsche's worldwide deliveries also fell 8% to 71,470 units in the first quarter of 2025.
Although the company's North American sales grew 37% to 20,698 units in the first three months of the year, this was not enough to offset weaker performance in other major markets.
Porsche attributed this robust growth in North America during the first quarter to 'import-related delays in the delivery of some model lines in the same period last year,' with several restrictions on Chinese car parts.
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The company has discontinued the internal combustion engine (ICE) versions of the 718 Cayman and 718 Boxster models in the EU, as they did not meet the bloc's new cybersecurity laws. These regulations require a cybersecurity management system (CSMS) across the entire vehicle lifecycle.
Porsche will also stop global production of the ICE version of these two models by mid-2025 and plans to launch all-electric versions of these models sometime this year.
The ICE version of the Porsche Macan model has also been discontinued in the EU.
Intensifying competition from Chinese rivals, an escalating trade war as well as lagging global demand have all been major factors contributing to Porsche's disappointing overall performance in the first quarter.
Regarding the outlook for the year ahead, Matthias Becker, member of the executive board for sales and marketing at Porsche AG, said: 'Porsche has a very young and highly attractive product range. Customer demand remains at a solid level. At the same time, Porsche is also investing in the brand and the product portfolio in order to be able to react flexibly to customer requirements.
'We are working closely with the various sales regions and will consistently focus on matching demand and supply in line with our 'Value over Volume' strategy.'
US tariffs continue to batter global car market
US president Donald Trump's escalating global tariffs have led to a lot of uncertainty in the worldwide car industry. A 25% tariff on car imports to the US has led to increasing fears of importers being forced to pass on these costs to consumers, with a potential negative impact on car companies' market shares as well.
These tariffs could also compel car manufacturers to rethink their current production, distribution and marketing strategies. This could involve moving production plants to more favourable locations, while also investing more in developing other markets.
Porsche currently imports all its cars sold in the US from Malaysia and Europe, which leaves it exceptionally vulnerable to these new car import tariffs. Morningstar Equity Research has given Porsche a high uncertainty rating, while also slashing its fair value estimate by 11%, down to €64 per share.
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