Chinese consumers are increasingly reluctant to spend money on luxury goods on faltering economic growth resulting from a real estate crisis in the country.German sports car maker Porsche AG reported a 28per cent 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, sold 56,887 vehicles in 2024 in China, versus 79,283 in 2023.
The drop weighed on global sales, which were down 3per cent at 310,718 vehicles compared with 2023. This came despite growth in its other markets, including an 11per cent 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's core car sales also fell in 2024, the carmaker said last week, hurt by a 7per cent drop in China, while China sales for the Volkswagen brand fell 8.3per cent to 2.2 million vehicles.
