BERLIN (Reuters) – German sports car maker Porsche AG on Monday reported a 28% drop in sales in China in 2024, as continued weakness in the world’s biggest auto market hits German automakers.
Porsche, majority-owned by Volkswagen ( ETR: ), sold 56,887 vehicles in 2024 in China, up from 79,283 in 2023.
The decline affected global sales, which fell 3% to 310,718 vehicles compared to 2023. This came despite growth in other markets, including 11% growth at home in Germany.
Chinese consumers are increasingly reluctant to spend money on luxury goods due to faltering economic growth resulting from the country’s real estate crisis.
“Overall, we have shown that we are extremely robust in the challenging market environment of 2024,” Porsche board member Detlev von Platen said in a statement.
Porsche said in October it would shrink its dealership network in China, reflecting continued weak demand.
Mercedes-Benz ( OTC: ) core car sales also fell in 2024, the automaker said last week, hit by a 7% drop in China, while Volkswagen brand sales in China fell 8.3% to 2.2 million vehicles.
