Porsche's profits plummet by 99%! Germany has finally realized this, and offending China comes at a huge cost.
Porsche's recent third-quarter financial report has caused a "furore" — the operating profit for the first three quarters of 2025 is only 40 million euros, a staggering 99% drop from 4 billion euros in the same period last year!
This brand that sells luxury cars at over 600,000 euros each has profits that are less than those of a medium-sized factory. And all of this is directly related to Porsche's continuous setbacks in the world's largest new energy vehicle market — China.
Porsche itself has admitted that the main reason for the sharp decline in profits is related to its performance in the Chinese market and tariff expenses. The performance in the Chinese market is a pain point that Porsche cannot avoid. Porsche's performance in the Chinese market has been continuously declining for three consecutive years, with the annual decline rate increasing each year.
In the first three quarters of 2025, Porsche sold only 32,000 vehicles in China, a 26% decrease compared to the same period last year.
This downward trend has been ongoing for many years: From 2022 to 2024, Porsche's sales in China were 90,000, 70,000, and 50,000 units respectively. Compared to the peak of 90,000 units in 2021, sales have almost halved in 2025.
Previously, China was Porsche's largest single market globally, with one out of every three Porsches sold worldwide being sold to China.
Now, the Chinese market has dropped to the third-largest market for Porsche, behind the United States and Europe. There are actually a series of reasons behind this.
Firstly, the German Foreign Minister, Wang Defu, was forced to delay his visit to China because he made a series of extremely unfriendly remarks about China before his departure. How could he expect a warm welcome? That's just daydreaming.
Additionally, Germany has falsely accused China's export controls on rare earths and semiconductors of being "economic extortion." The president of the German Central Bank, Nagel, stated that "firm actions" and "bold decisions" may be necessary if needed, even mentioning a fierce "retaliation" against China.
If Germany continues to maintain this attitude, it will find that the general Chinese consumers' perception of it will get worse and worse, and the market share of German cars is likely to further decline.
Original article: www.toutiao.com/article/1847023901776900/
Statement: This article represents the personal views of the author.