The German car manufacturer Porsche recorded an attributable net profit of 2,765 million euros until September, 29.8% less than during the first nine months of 2023 before the collapse of sales in China and the slowdown in sales of its electric models .
During the period, turnover decreased by 5.2% to 28,564 million eurosof which 25,899 million euros corresponded to its automobile division, 6.9% less.
So, The automotive group’s ebit plummeted by 26.7%to 4,040 million, while the profitability on sales was affected after falling to 14.1%. In the third quarter, revenue fell 6.1% up to 9,107 million euros.
In this context, the automobile sold 221,304 vehicles until September, almost 12% less than a year ago, while deliveries fell by 6.9% to 226,026 cars as a result of low demand from the Chinese market where registrations registered a drop of almost 29%.
“We are not going to give up on the Chinese market, but we must face the facts,” the group said, adding that Vehicle sales in China expected to stagnate in 2025 compared to this year and that Porsche will significantly reduce its local dealer network.
Consequently, the manufacturer has admitted to studying cost reduction and revising its model range. The slowdown in global demand for electric vehicles is another reason for the review, admitted CFO Lutz Meschke, who warned that the third quarter was the weakest of the entire year.
Meschke has admitted that the adjustment will reduce its structure to reflect global annual vehicle sales. around 250,000, below of the more than 300,000 units registered in recent years.
However, the German manufacturer maintains its forecasts for the entire year, with sales of between 39,000 and 40,000 million euros and an operating margin of between 14% and 15%, betting on a recovery in demand in the remaining months of the year.
In July, Porsche lowered its annual forecastsstating that it expected to achieve a return on sales of up to 15%.
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