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New Delhi: Porsche have recorded their poorest annual sales performance in the last 16 years, with global deliveries falling to 2,79,449 units in 2025. Which is a 10 per cent decline as compared to the year before, according to a report from Reuters.
The German sports car brand, operating under the Volkswagen Group umbrella, faced similar turbulence to its rivals Audi and Mercedes-Benz. The most severe impact came from China, where Porsche’s sales dropped by 26 per cent in the middle of a slowdown in the luxury segment and heavy competition from electric vehicle makers. Reuters noted that these pressures led Porsche to scale back their dealer network in the country.
Things for Porsche competitors BMW and Mercedes-Benz are relatively better in China, with registered sales declines of 12.5 per cent and 19 per cent respectively in 2025. Overall, 2025 marked Porsche’s sharpest annual sales decline since 2009, when the global financial crisis led to a 24 per cent drop in deliveries.
Europe also proved challenging for the carmaker. Porsche’s domestic market of Germany saw sales fall by 16 per cent, while deliveries across the remaining Europe declined by 13 per cent. Reuters attributed most of this downturn to supply disruptions affecting both the 718 and Macan models powered by combustion engines. These disruptions stemmed from new EU cybersecurity regulations that came into force in July 2024 and required changes to vehicle software systems.
North America emerged as the only relatively stable market for Porsche, where sales remained flat. This was contrasting to the sharp decline of around 12 per cent for both Mercedes-Benz and Audi.
Reuters reported that proposed US tariffs were expected to cost Porsche about €700 million in 2025. Unlike some of its competition, the brand does not manufacture vehicles in the US, leaving it more exposed to trade-related risks.
Porsche’s decision to recalibrate their strategy, scaling back their push for an all-electric vehicle portfolio in favour of more profitable combustion-engine models while postponing certain EV launches, also weighed on earnings. According to the report, this shift resulted in a €1.8 billion impact on profits last year.
Despite the strategic adjustment, electric vehicles still accounted for 22.2 per cent of Porsche’s global deliveries in 2025, with plug-in hybrids contributing a further 12.1 per cent. This placed the brand's overall electrified share at the higher end of its stated target range of 20 to 22 per cent.
