Intensifying competition and weaker spending in China dragged VW’s luxury sports-car brand Porsche AG to its lowest third-quarter sales in a decade. The decline was particularly sharp for Porsche’s electric Taycan model, which sank 47% overall.
Slumping demand for EVs also hurt the company in Europe, where deliveries of battery-powered cars fell 12%, and in the US, where they tumbled by more than 40%.
Weakness in China, though, is taking the heaviest toll on Germany’s auto industry, prompting proft warnings from Mercedes-Benz Group AG and BMW AG. VW, which long dominated sales of high-end gasoline-powered cars there, has fallen behind local manufacturers like BYD Co. that have seized the upper hand with innovative and affordable plug-in models.
“The competitive situation in China is particularly intense, which is the main reason for the global decline in our deliveries,” said Marco Schubert, who oversees sales for VW.
BMW and Mercedes this week recorded steep declines in China. Sales of BMWs and Mini cars — also made by the Bavarian company — recorded their biggest drop in more than four years, falling 30% in the third quarter in China. Mercedes deliveries there declined 13% amid weak demand for pricey models like the S-Class and Maybach.
Porsche’s results underscored its decision to walk back its electrification target earlier this year, saying that while EVs could account for more than 80% of new-vehicle sales in 2030, it’s no longer the company’s concrete goal.
Sales have also been hurt by supply chain issues, including flooding that disrupted a specialty aluminum provider, and a refresh of its model portfolio, the company said.
With China’s rapid shift to EVs, intensifying local competition and an economic slowdown, Chief Executive Officer Oliver Blume began to push Porsche’s volumes to other markets this year.
Despite the headwinds, VW did see some growth in EV sales in China. Deliveries there of battery-powered vehicles across its brands were up 5.2% in the third quarter and 26.5% this year.
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