German sports car maker Porsche saw a steep fall in annual sales, joining fellow Volkswagen subsidiary Audi and Mercedes in reporting weak 2025 sales in a fiercely competitive market in China.
The company delivered 279,449 vehicles last year, down 10% overall compared to 2024.
Porsche pivoted back to more bankable combustion engine models and delayed the launch of some all-electric vehicles last year as demand sagged, at a cost of 1.8 billion euros to earnings.
In China, sales slumped 26% hit by challenging market conditions in the luxury segment, as well as intense competition for fully electric models, the carmaker said, as it scales back its dealer network there.
Porsche underperformed peers BMW and Mercedes whose own sales fell 12.5% and 19% respectively in China in 2025.
Its shares were down 1.3% after the sales data.
In Germany and the rest of Europe, sales fell by 16% and 13%, respectively, Porsche said.
It attributed the decline in Europe to supply gaps for the 718 and Macan combustion engine models due to EU cybersecurity regulations, which came into force in July 2024 requiring carmakers to adapt their offerings to secure software.
The new regulations meant the ICE model of the best-selling Macan was no longer available in 2025, creating a higher baseline in 2024, said Matthias Schmidt, European autos market analyst at Schmidt Automotive.
Porsche outperformed Mercedes and Audi in the North American market, where its sales remained flat compared with a 12% decline for both German peers in 2025.
"Porsche likely benefited from a pull-forward of inventory registrations across the US to mitigate against tariffs," said Schmidt.
Like Audi, Porsche has no US production site, making it exposed to US tariffs, which were expected to cost the company roughly €700m in 2025.
Porsche said 22.2% of worldwide deliveries in 2025 were fully electric models while 12.1% were plug-in hybrids.
"This puts the global share of fully electric vehicles at the upper end of the stated target range of 20% to 22% for 2025," it said.
