It was revealed that Porsche China was jointly protested by dealers, demanding subsidies for loss of sales of cars

News on May 27, according to Jiemian News, at the Porsche China Dealer Conference earlier this year, three dealers, Xinfengtai, Badelli and Meidong Group, raised objections to this year’s sales tasks, requested Porsche China compensates for losses incurred from selling new cars. However, the two sides have yet to reach a proper solution.

Specifically, Meidong Group hopes that Porsche China can subsidize the gross profit of new car sales to 1 point, while Badley Group and others sent a letter to Porsche through the Automobile Dealers Association China requires subsidies to a gross profit margin of 4 points. However, these requirements were not immediately met. The reason may be that these three dealers are not Porsche's core dealers in China. Porsche’s global sales this year are not optimistic. Official data shows that from January to March this year, Porsche's global sales fell by 4% year-on-year. In the Chinese market, Porsche's sales fell particularly sharply, with first-quarter deliveries falling sharply by 24% year-on-year. The decline in sales may be related to the market acceptance of pure electric models. Sun Shaojun, founder of Car Fans, revealed that sales of Porsche pure electric models are not ideal, leading to a sharp plunge in car prices.

#In this context, the conflict between Porsche China and its dealers has further intensified. In order to complete its sales tasks, Porsche China chose to press inventory from dealers, but this move caused strong dissatisfaction among dealers. Now, some dealers have even stopped selling cars as a means to put pressure on the German headquarters to replace senior executives and provide subsidies. The incident reflects Porsche's difficulties in the Chinese market. Although Porsche enjoys a high reputation and sales in China, consumers' enthusiasm for buying cars has gradually decreased. Therefore, Porsche China needs to replace senior executives and provide subsidies to meet dealer requirements and drive sales growth.

Currently, this dispute has not yet been resolved,

Porsche’s annual sales target for the Chinese market has therefore not been determined

. Although the protesting dealer group is still buying a small number of cars, they are more inclined to choose models that are hot on the market. This dispute between Porsche China and its dealers has undoubtedly put a lot of pressure on both parties, and it has also exposed the challenges that may be faced in the transformation of the new energy vehicle market.

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