Porsche plans to further shrink its dealership network in China this year as the German luxury carmaker grapples with prolonged sales declines in the world’s largest automotive market, according to Chinese media reports.
The Volkswagen Group-owned brand aims to reduce its number of dealers in China by about 30% to around 80 outlets by 2026, Alexander Pollich, chief executive of Porsche China, was quoted as saying by local business outlet Yicai on Monday. Porsche had already cut its dealer count from about 150 to 114 in 2025, the report said.
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Pollich said Porsche is in a “recalibration phase” in China, with efforts focused on optimizing its retail network and introducing more exclusive models, rather than pursuing volume growth at all costs. “Success will not be measured solely by sales volume,” he said, according to the report.
The executive added that Porsche’s cost-cutting measures will continue, with savings redirected toward market investments and future research and development, including work at its Shanghai R&D center. He also said the company has no plans to localize vehicle production in China.
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Separately, Pollich told financial news outlet Cailian that Porsche is evaluating multiple Chinese smart driving solution providers and conducting related research, as competition in advanced driver assistance and in-car technology intensifies.
Porsche delivered 41,938 vehicles in China in 2025, down 26.28% from 56,887 units a year earlier, the company said earlier this month. The decline marked the fourth consecutive year of falling deliveries in China, though the pace eased slightly from a 28.25% drop recorded in 2024.
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“Key reasons for the decline remain challenging market conditions, especially in the luxury segment, as well as intense competition in the Chinese market, particularly for fully electric models,” Porsche said in a statement, adding that it continues to prioritize value-oriented sales in the country.
A slowing Chinese economy and aggressive expansion by domestic automakers into the premium and electric segments have increased pressure on foreign luxury brands, forcing companies like Porsche to rethink their long-term strategies in the market.