Porsche inaugurated its first major research and development facility outside Europe on Tuesday in Shanghai, aiming to tailor software and vehicle features to local customer preferences and accelerate development cycles.
The 10,000-square-metre centre employs more than 300 engineers and specialists across research, development, procurement, and quality management. It forms part of Porsche’s “In China for China” strategy, which seeks to adapt vehicles directly to the Chinese market rather than managing operations solely from Stuttgart.
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“China is leading the way in future mobility, combining electrification, digitalization, and new luxury concepts. Solving the challenges of this transformation isn’t possible from afar – it has to happen here,” said Porsche CEO Oliver Blume at the opening. “The China R&D is a strategic pillar that connects German engineering with China’s digital future. This center will help us move faster, learn more, and strengthen Porsche R&D globally.”
The facility will serve Porsche China, Porsche Engineering China, and Porsche Digital China divisions, with the first major project being the development of a new infotainment system tailored to Chinese customers. The system, expected in Porsche model series from mid-2026, will feature an AI voice assistant based on a large language model and deeper integration with the local digital ecosystem.
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Porsche said the Shanghai centre will shorten development cycles from years to months, providing direct access to China’s innovation ecosystem. The move comes as the Zuffenhausen-based company faces declining sales in the country, with deliveries falling 28% in the first half of 2025 to 21,302 vehicles—the lowest in 11 years.
The new R&D hub reflects Porsche’s efforts to compete more effectively in China, where domestic automakers and software offerings increasingly outpace German premium brands in electrification and digital technology.