(Bloomberg) -- Porsche AG’s deliveries declined 7% in the first half of the year as the German manufacturer introduced a number of new models and demand in China softened further.
The Volkswagen AG brand sold 155,945 vehicles through June, with growth in Europe unable to offset declines in China and North America, Porsche said Tuesday. Its sales slump in China accelerated, with deliveries there dropping by a third.
Porsche’s performance has deteriorated in the past months, with the company reporting the weakest result in the first quarter since listing in September 2022. While the maker of the 911 has said this will likely mark the low point of the year, luxury buyers have become choosier about spending, with demand in China waning due to a prolonged real estate crisis and weaker economy.
In April, Porsche warned that introducing new models including the electric Macan and revamped 911 sports car will weigh on output and returns. Macan sales dropped 18%, while shipments of the Panamera sport utility vehicle fell by a quarter. Sales of the electric Taycan slumped 51%.
Porsche expects margins of between 15% to 17% this year, with group revenue of as much as €42 billion ($45.5 billion). The manufacturer has guided for profitability to improve next year on the back of its updated model range.
“In 2024, we will put the most powerful Porsche product portfolio of all time on the road,” Porsche’s head of sales Detlev von Platen said in a statement, adding that the manufacturer will continue to offer combustion-engine vehicles alongside plug-in hybrid models and electric cars.
This will provide “an attractive offering for all customers — regardless of preferences and developments in the individual regions of the world.”
--With assistance from Kimberley Mannion.
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