Summary
- Porsche sales have stalled out worldwide in the first half of 2024
- The Taycan is the biggest loser, with only 8,838 deliveries (-51 percent)
- Porsche sales in China plummeted by 33%, delivering 29,551 vehicles
- Sales in North America slide by 6% but posts the strongest quarterly performance
As forecasted by industry experts, 2024 is proving to be a challenging year for electric car sales, which are affected by different trends and economic factors. All brands are trying to plug holes in a year that we anticipate will be the first to close with a significant downturn in EV sales, as we saw in Q2. The business landscape for electric vehicles is unstable just when drivers can access the best cars we’ve had in history.
But the crisis is widespread and affects not only mass-market car brands but also the luxury car segment, such as Porsche. The Stuttgart-based sports car manufacturer had a bad first half of 2024. Sales have tanked, and the reduced interest in the Taycan electric vehicle (EV) model has dragged down the rest of their lineup.
Credit Porsche
Porsche is at a turning point in its history. The company is fully committed to making its EV lineup its most prominent commercial force and is regarded as a pioneer in sustainable mobility. The sports car brand is stepping up a notch as it moves into the electromobility era. The company plans to offer more than 50% of its new vehicles with plug-in hybrid or completely electric drivetrains by 2025.
The Taycan was the forerunner back in 2019, and then the Macan followed. Other Porsche models, such as the 718 or the Cayenne, will soon expand the brand’s EV lineup. Preparations are underway, work is culminating, and the goals are ambitious. However, the German automaker has yet to fully grasp the electric car market. The first half of 2024 shows that Porsche needs to turn things around quickly to reverse the sales slump of the year’s first two quarters.
The Taycan And China The Main Culprits
Between January and June, Porsche delivered 155,945 vehicles worldwide. While the figure is impressive, it represents a 7% decrease compared to the previous year. As the company says, Europe, excluding Germany, has recorded an increase in sales volume, with 38,611 cars, 6% more than in the same period last year. Germany, the local market, increased by 22% to 20,811 units.
Credit Porsche
Moving away from Europe, Porsche’s decline can be attributed to three main factors. The first and most important is the notorious drop in sales in China. Porsche claims the main reason for its poor results is the tense situation that continues to prevail in the Chinese market, translating into increasingly voracious competition. Chinese manufacturers can match almost any of their European competitors at a much lower cost. This explains why, between January and June, Porsche sales in China plummeted by 33%, delivering 29,551 vehicles.
North America Sales Also Dropped, But The Region Is Catching Up
The United States joined this negative trend by decreasing its sales volume by 6%. In North America as a whole, 39,558 deliveries were registered. In this case, Porsche blames successive delays related to customs and delivery processes. Still, the region achieved its best quarterly result, significantly closing the gap. The last factor that contributed to Porsche’s drop in sales in the first half of 2024 is related to its flagship electric vehicle. The Taycan was the biggest loser as deliveries dropped by 51% in the first six months of this year, followed by the Panamera, with sales down by 25%, and the Macan, with 18%.
It’s no secret that Porsche has revamped the Taycan in the first half of 2024. Last February, the company updated its first electric sedan to offer more performance and range, although it has also significantly bumped the price. That impasse between models has substantially affected sales, as many customers have preferred to wait for the updated model. However, the fear remains that potential customers have lost interest in the Taycan, which would threaten Porsche’s strategy in the long run. The electric Macan has already started production. Deliveries will begin soon, but we’ll have to wait until the end of the year to know if Porsche is in free fall or if the second quarter results were just a minor hiccup.
