Porsche’s deliveries fell 10% last year — the steepest drop since 2009, when the global financial crisis roiled markets — due to weak demand for electric vehicles and a slump in China.
The Volkswagen luxury brand said Friday it delivered 279,449 vehicles in 2025, with China and Germany leading declines.
Porsche said “supply gaps” for combustion engine versions of the 718 sports car and Macan sport utility vehicle also hurt sales.
Porsche has struggled with a range of challenges, including correcting an overly ambitious EV rollout that upended model plans and weighed on margins.
Tariffs in the US — which has surpassed China as Porsche’s most important market — also have weighed on profit.
In China, where local competition is intensifying, Porsche’s sales slumped 26%.
The country’s economic slowdown has hit consumers across income brackets, with a protracted real estate crisis weighing on luxury spending.
At the same time, homegrown manufacturers including BYD, Xiaomi and Huawei are targeting wealthier customers with premium materials, as well as advanced software and battery technology.
German peers BMW and Mercedes-Benz face similar demand issues in the world’s biggest auto market.
In Europe, deliveries fell in part because of supply issues related to the 718 and Macan models.
Porsche was forced to phase out production of the popular combustion engine vehicles due to more stringent EU cybersecurity regulations they didn’t meet.
Porsche shares fell as much as 1.2% in Frankfurt. The stock is down over 30% in the past year and has fallen out of Germany’s DAX Index.
The company has pledged improvements after walking back its outlook four times last year.
Its performance trough has come at a critical time for parent Volkswagen, which relies on profit from premium brands that also include Audi.
Global demand for Porsche’s first EV, the Taycan, fell 22% last year, with residual values for the vehicle proving less resilient than comparable combustion models.
The manufacturer has warned that its course correction on EVs would slash operating profit by as much as €1.8 billion (around R34 billion) in 2025.
Michael Leiters, the former head of McLaren, has been tasked with turning the company around.
He took over as chief executive officer on Jan. 1, ending Volkswagen CEO Oliver Blume’s double role. Leiters has a track record of pushing hybrids including during a past stint at Porsche.
He’ll negotiate with labor leaders this year on additional cost cuts.
Achieving lasting improvement will take time. Chief Financial Officer Jochen Breckner in October said while 2025 would be a low point, returning to double-digit margins would be a target for the years to come after 2026.
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