Porsche deliveries fell 10 percent last year, the biggest drop since 2009 and the global financial crisis. According to a report published by the company this Friday, the luxury brand within the Volkswagen Group delivered 279,449 vehicles in 2025, with the main causes of the decline being weak demand for electric vehicles and a significant decline in the Chinese and German markets.
Porsche has faced a number of challenges, including correcting an overambitious plan for electric vehicles that has disrupted model plans and affected profit margins. Additional pressure was created by tariffs in the US, which overtook China as Porsche’s most important market. In China, where local competition is becoming more intense, Porsche sales fell by as much as 26 percent. The slowdown of the country’s economy affected consumers of all incomes, while the long-term crisis in the real estate market reduced spending on luxury goods.
At the same time, domestic manufacturers such as BYD, Xiaomi and Huawei target wealthier customers with premium materials and advanced software and battery technology, creating similar problems for German competitors such as BMW and Mercedes.
Problems with classic models and a fall in the stock market
The problems did not bypass Europe either. The drop in deliveries in the European market was partly caused by interruptions in deliveries of the Porsche 718 and Macan with internal combustion engines. We remind you that Porsche was forced to stop production of these popular models due to stricter EU regulations on cyber security that they did not meet.
As a result of poor business results, Porsche shares fell 1.2 percent in Frankfurt. The share value has fallen by more than 30 percent in the past year, causing the company to drop from the German DAX index.
New CEO and recovery plans
The company’s management has promised improvements after last year’s failures, when it even revised its forecasts four times. The drop in performance comes at a critical time for parent company Volkswagen, which relies heavily on profits from its premium brands, including Audi. Global demand for Porsche’s first electric vehicle, the Taycan, fell 22 percent last year, with used vehicle values proving less resilient than comparable models with internal combustion engines.
The manufacturer warned that the correction of the direction related to electric vehicles could reduce the operating profit by as much as 1.8 billion euros in 2025. The turnaround task is entrusted Michaelu Leitersuthe former McLaren boss, who took over as CEO on January 1, ending the dual role of Volkswagen CEO Olivera Blumea. Leiters, a manager with experience in the development of hybrids who previously worked at Porsche on the popular SUV Cayenne, will also negotiate with unions this year on additional cost cuts.
However, achieving lasting improvement will take time. Financial director Breckner jochen he said in October that 2025 would be the lowest point, but that a return to double-digit margins would be the goal for the years after 2026.