Sales Slump, Porsche Cuts 30 Percent of Dealers in China and Focuses on Pressing Costs

JAKARTA - Porsche is taking massive efficiency measures in the Chinese market. The German car manufacturer plans to close about 30 percent of its dealer network as part of a cost-saving strategy.

Reported by Carnewschina, Tuesday, January 27, the action was taken due to the continued decline in sales in recent years. Porsche China CEO Pan Liqi, revealed that the policy is aimed at strengthening the company's financial structure.

"Our main focus at the moment is the implementation of cost-cutting measures," said Pan Liqi.

Porsche's problems in China surfaced since the end of 2025, when a number of dealers reportedly stopped operations due to sluggish sales and financial pressure. The situation continued in January 2026 with the closure of the Zhengzhou Zhongyuan Porsche Center, followed by the Guiyang Mengguan Porsche Center.

As a result, Porsche China had to intervene directly to settle the customers' delayed down payments as well as the missing vehicle conformity documents. This condition is inseparable from the declining sales trend.

Throughout 2025, Porsche only delivered 41,938 vehicles in China, down 26 percent from the previous year. In fact, in 2022, sales of this premium brand reached 95,671 units. In three years, sales fell by 56.2 percent.

As part of the restructuring, Porsche China is targeting a reduction in the number of dealers to around 80 locations by 2026. It is worth noting that Porsche's network in China is still recorded at 150 dealers at the end of 2024, then down to 114 dealers at the end of 2025.

Pan Liqi explained that the efficiency fund would be allocated to support Porsche's first overseas integrated R&D center in Shanghai, which was officially opened last November. He said the company was entering a phase of recalibration and adjustment, with the long-term goal of increasing sales through streamlining the dealer network and launching exclusive models.

In the near future, Porsche also plans to add two new models with internal combustion engine (ICE) and plug-in hybrid (PHEV) options. That includes B- and D-segment crossovers scheduled to launch before the end of the year.

Even so, Pan Liqi denied the news of localization of production in China. He said Porsche is currently exploring cooperation with a number of Chinese suppliers, especially in the field of intelligent driving solutions.

For 2026, Porsche's short-term strategy prioritizes quality over quantity. The company no longer makes sales volume the only benchmark for success.