How to View Being Targeted by Chinese Automakers? Porsche China President's Exclusive Response!

The luxury car market is undergoing an unprecedented transformation.

On one side, traditional luxury brands are experiencing a period of adjustment; on the other, some Chinese new energy vehicle brands are also advancing into the luxury market, with some even directly adopting slogans targeting Porsche.

In a dialogue, Michael Perschke, President and CEO of Porsche China, responded to this matter.

He stated that true competition is not about comparing specifications or configurations on a single dimension, but about whether a brand can provide customers with a complete, profound, and irreplaceable value system. "Porsche's advantage does not lie in leading in any single technology, but in the sum total of these 'irreplaceable' experiences."

Simultaneously, regarding the closely watched optimization of dealership operators, Perschke responded, "I want to emphasize that optimizing the dealer network is a proactive, strategic decision aimed at building a healthier, more efficient, and more sustainable retail network, thereby providing customers with a superior brand experience. This is not a signal of 'contraction,' but a process of 'quality improvement.'"

Over the past year, Porsche has indeed been in a phase of continuous adjustment. Recently disclosed sales figures show that Porsche's global sales for 2025 were approximately 279,000 vehicles, with sales in the Chinese market around 42,000 units, reflecting a certain degree of year-on-year decline.

Upon taking office, Perschke stated publicly that the goal was to win back the Chinese market by 2026. What exactly does "winning back China" entail?

He explained that the core of this strategy is not simply a return to past sales volumes. Porsche's goal is to establish a sustainable and profitable business model; therefore, the metrics for success are multidimensional, extending far beyond mere market share or sales figures.

The following is the transcript of the dialogue between Michael Perschke:

Optimizing the dealer network is a proactive decision, focused on quality improvement, not contraction. Question: You have been at the helm of the Chinese market for over a year now. Looking back on this period, what are some memorable stories? Has your understanding of the Chinese market undergone any changes? Perschke: Leading Porsche China for over a year has significantly broadened my perspective. Having worked in multiple global markets, the vitality, scale, and pace of change in the current Chinese market are unique. If there's one thing I feel most profoundly, it is "change" itself. The speed of innovation, the competitive landscape, and the evolution of consumer demands here almost constantly refresh our understanding. The most memorable aspects are, first, my communications with our dealer partners. During challenging market times, I personally felt their belief in and commitment to the Porsche brand. Second, is the passion of our Chinese customers and sports car enthusiasts. At an event at the Shanghai International Circuit late last October, over 500 various Porsche sports cars gathered. Seeing owners from different eras and backgrounds come together for the same dream, sharing their passion, I deeply felt in that moment that this is the most solid and moving embodiment of the Porsche brand's value. Regarding my understanding of the Chinese market, the biggest realization involves a dual understanding of "speed." First, the speed of market change and technological iteration, which demands we respond with "China speed." Second, the depth of long-termism, which requires resisting short-term noise and deeply cultivating value. The key lies in balancing these two aspects. The Chinese market is full of astounding vitality and innovation capability, but it also poses an unprecedented test of a brand's sincerity and resilience. Porsche's development in China is not a sprint; it's a 24 Hours of Le Mans endurance race. We might be experiencing heavy rain, even requiring unplanned pit stops, but we firmly believe that by adhering to the right strategy, we will ultimately be rewarded.

Question: Porsche is currently facing some challenges in the Chinese market, and you have announced adjustment plans regarding sales outlets. During this adjustment process, how will you better protect user rights and ensure service continuity? Perschke: We fully understand customers' concerns about service continuity. First, I want to emphasize that optimizing the dealer network is a proactive, strategic decision aimed at building a healthier, more efficient, and more sustainable retail network to provide customers with a superior brand experience. This is not a signal of 'contraction,' but a process of 'quality improvement.' Throughout the adjustment process, ensuring a Porsche-standard owner experience is our highest priority. We have developed meticulous plans to ensure seamless service continuity for every customer, including after-sales service network coverage, handling of customer entitlements, and proactive communication. A leaner, stronger dealer network will be more capable of investing in service upgrades and customer experience innovation, which will ultimately benefit every Porsche owner in the long run. Regarding the "store closures" incident caused by the Dong'an Group's own capital chain issues at the end of last year, Porsche China is actively fulfilling its responsibilities as the brand owner and making every effort to protect the legitimate rights and interests of customers. 1. Porsche China has been leading communication and negotiation with the relevant credit banks. We will provide feasible plans to protect customer entitlements as soon as possible based on the negotiation outcomes. 2. For genuine contractual customers who have paid deposits to the affected dealerships but have not yet taken delivery of their vehicles, Porsche China will provide safeguard measures to protect their legitimate rights and interests. 3. Customers affected in terms of after-sales service can still enjoy maintenance packages officially sold by the Porsche brand and original factory warranty services at other Porsche Centers.

Question: Adjustments to sales networks by luxury brands are often interpreted by the outside world as business contraction, or even a brand crisis. Are you concerned about user confidence in the Porsche brand? What measures will Porsche take to address such concerns? Perschke: We understand the initial interpretation of events by outsiders, but our actions are based on a clear assessment of the market and a firm commitment to protecting the brand's long-term value. Our core strategy has always been "quality over quantity," meaning we pursue sustainable, profitable growth, not merely sales figures. Network optimization is a direct reflection of this strategy, ensuring our retail layout matches a sales approach more focused on value and uniqueness. The best way to address concerns is not through words, but actions. We are demonstrating our long-term commitment to the Chinese market and confidence in the brand's future through a series of firm investments: Deepening the "In China, for China" localization strategy: We officially inaugurated the Porsche China R&D Center in Shanghai in November 2025. This is Porsche's first full-function R&D hub outside Weissach, Germany, integrating R&D, procurement, and quality control with a high degree of autonomy, aiming to develop digital and intelligent solutions deeply tailored to local needs at "China speed." Strengthening the brand core and product appeal: We continue to introduce benchmark models that highlight the brand's racing DNA, such as the new 911 GT3, and have launched exclusive models for the Chinese market like the Cayenne and Macan Jinchi and Zhumeng editions, as well as the Panamera Junyong edition. Innovating customer experience and community connection: Through track and driving experiences, classic car culture promotion, and initiatives like establishing Asia's first brand pop-up space in Shanghai, we continuously deepen emotional connections with owners and enthusiasts. We firmly believe that true brand confidence stems from adhering to the brand's core values, fulfilling promises to customers, and continuously investing in the future. Porsche's foundation lies in creating dreams for customers, and this has never changed.

True competition is not about matching specifications; our advantage is the value system. Question: Facing changes in Chinese user demands, Porsche specifically established an R&D center in China. We have seen progress in the smart cockpit; what are the plans for intelligent driving? When do you expect Porsche's level of intelligence to match or even surpass that of Chinese new players? Perschke: We are fully aware of the high demands and rapid iteration trends of Chinese users regarding intelligent driving (ADAS). One of the core tasks of the Porsche China R&D Center is to deeply understand and meet these needs. The new generation China-exclusive infotainment system, led by the local team, is planned to be deployed in multiple models starting mid-2026. It deeply integrates mainstream Chinese digital ecosystems and introduces an AI voice assistant based on large language models, extending Porsche's driving passion into the digital dimension. Regarding vehicle intelligent functions, our philosophy is "driver-centric" innovation. The essence of Porsche lies in the unparalleled driving experience; any driver assistance function must serve and enhance this core experience, not replace it. We will not engage in technological stacking merely to pursue a "leading" number of features. Our strategy is to prioritize the maturity, reliability, and safety of the technology, ensuring perfect integration with Porsche's overall vehicle performance. We are closely monitoring the development of intelligent driving and the evolution of relevant regulations. The China R&D team is working closely with headquarters in Germany, continuously evaluating potential collaborations with local technology partners. However, any future technology deployment will be premised on meeting Porsche's stringent quality, safety, and brand experience standards. We will not provide a specific timeline to "match" or "surpass." Our goal is to forge a path unique to Porsche in the field of intelligence—that is, to provide solutions that best enhance the pure driving pleasure, are the most reliable, and most align with the Porsche brand value. Regarding the upcoming all-electric Cayenne, it will have impressive performance in digitalization and intelligence; we plan to share more details at the 2026 Beijing Auto Show.

Question: Do you think the definition of a luxury brand is changing? Facing the trends of electrification and intelligence, how does Porsche balance its own DNA with market changes? Perschke: Yes, the definition of luxury is undergoing a profound evolution. In the past, it was defined more by mechanical performance, material craftsmanship, and brand history. Now, especially in the Chinese market, intelligent connectivity, seamless digital ecosystems, and forward-looking user experience are becoming new dimensions for measuring the value of a luxury brand. The new generation of luxury consumers not only pursues ultimate driving pleasure but also craves cutting-edge technological experiences. Facing this trend, Porsche's way of balancing lies in "integration" rather than "trade-off." Our core task is to perfectly combine the sports car DNA that the brand has cultivated for nearly 80 years with the future trends of electrification and intelligence. Through our "three-pillar" product strategy, we can flexibly respond to the differentiated needs of different regional markets and customer groups. Regardless of the powertrain, every Porsche must possess authentic "Porsche DNA"—precise handling,卓越的性能和独特的设计. Simultaneously, through our "In China, for China" R&D strategy, we inject a localized digital soul into these products that inherit classic genes, finding a balance between adhering to our DNA and embracing market changes. No matter how the dimensions of luxury change, its core remains serving users who pursue极致体验, satisfying discerning users with unique value and quality, needing to承载情感、工艺、功能与时间价值—and this is precisely the principle Porsche has practiced in the past, present, and future.

Question: Competition in the Chinese market is intensifying, with more and more local new players impacting the luxury market. Some brands even explicitly state they are benchmarking against Porsche. How do you view Porsche's competition with them? What will be Porsche's advantage? Perschke: We view market competition with an open and respectful attitude. The rapid rise of local Chinese brands and their excellent product capabilities are indeed impressive. When brands regard Porsche as a benchmark, we believe this, from another perspective, confirms Porsche's benchmark status and brand value within the industry. As a brand born on the racetrack, we are familiar with competition and see it as a driving force that spurs us to continuous progress. True competition is not about comparing specifications or configurations on a single dimension, but about whether a brand can provide customers with a complete, profound, and irreplaceable value system. This is precisely where Porsche's "irreplaceable" brand value lies. Our advantages can be summarized into four interconnected core pillars that cannot be quickly replicated: First, the unique driving experience and racetrack基因. The soul of Porsche lies in the unique feeling of "man and machine as one," tempered by over 30,000 race victories. This is not merely acceleration performance, but precise steering feedback, balanced chassis tuning, and deep communication between all senses and the vehicle. The pure pleasure and emotional resonance brought by driving itself cannot be defined by any list of features. Second, enduring design and engineering heritage. The true test of luxury is time. Over 70% of all Porsches ever built are still on the road, proving the reliability of our engineering and the timelessness of our design. This heritage creates deep emotional equity and extraordinary value retention. In an era of rapid technological iteration, this quality and durability that withstands the test of time is itself a luxury. Third, a global community of owners and a sense of belonging. Porsche has a passion-driven, truly global, and highly active community. In China, the Porsche Owner Club, since its establishment in 2017, has developed a community network spread across the country. Buying a Porsche is not just about owning a car; it's about gaining an identity and a group of like-minded companions. This organically grown, warm emotional connection is irreplaceable. Fourth, deep personalization and co-creation. In the era of standardized production, Porsche offers the ultimate freedom to transform precision engineering into personal artistic expression. From over 10 million configuration possibilities through Porsche Exclusive Manufaktur to the Sonderwunsch program working with customers to realize unique dreams, we make every car an extension of the owner's personality. In summary, Porsche's advantage does not lie in leading in any single technology, but in the融合 of these four pillars—racetrack基因, eternal heritage, community belonging, and personal expression—into a complete and captivating brand world. Our customers crave emotional resonance, historical connection, personalized identity, and pure driving passion. This sum total of "irreplaceable" experiences is the fundamental confidence that has seen Porsche through nearly 80 years and will continue to lead it into the future.

"Winning back China" is not about a single sales figure. Question: Porsche China recently announced the cessation of its self-built charging network operations, shifting focus back to internal combustion engine models. What are the specific considerations behind this change? Will it affect Porsche's competitiveness in electrification? Perschke: These two decisions need to be viewed separately. They are both strategic optimizations based on the current market environment and changes in user demand, aimed at advancing our long-term strategy more efficiently. First, regarding the adjustment of the Premium Charging network, this is a strategic upgrade from self-building to open ecosystem integration. This decision was made based on real-time operational data and in-depth analysis of user charging preferences and the usage efficiency of various facilities in different scenarios. As the new energy vehicle segment in China expands rapidly and charging infrastructure has become very mature, we will deepen cooperation with high-quality third-party resources to provide customers with a more efficient, choice-rich, and still extensively covered charging network. Second, the adjustment to the product drive strategy is a pragmatic calibration based on realistic market insights, aimed at consolidating our market foundation and providing stable business support for the long-term transition to electrification. The协同发展 of the three-pillar drive forms together constitute Porsche's flexible and resilient product matrix. Our commitment to electrification remains unwavering, and the upcoming all-electric Cayenne and all-electric 718 are the best proof of this.

Question: You previously mentioned that Porsche would maintain supply slightly below market demand to preserve the brand's long-term value. Does this mean that the terminal prices of some Porsche models will increase next year? Perschke: "Quality over quantity" is a strategic principle we adhere to, aimed at maintaining product uniqueness and brand value, avoiding value dilution due to oversupply. However, this does not directly equate to a simple increase in terminal selling prices. The terminal price of specific models is dynamically determined by multiple factors including market supply and demand, product competitiveness, configuration value, and dealers' commercial decisions. Our core task is to ensure that every Porsche, whether through product strength, personalized configuration, or exclusive services, provides users with a value experience that matches its price and exceeds expectations. We pursue an enhancement in perceived value, not merely a change in price.

Question: You stated that Porsche would restart its offensive mode in 2026 to win back the Chinese market. In your view, what are the specific indicators for "winning back China"? For example, market share, profit, or others? Perschke: The core of the "winning back China" strategy is not simply a return to past sales volumes. For us, the goal is to establish a sustainable, profitable business model and win customers' long-term enthusiasm and loyalty through卓越体验. Therefore, our metrics for success are multidimensional, extending far beyond单一的市场份额或销量数字. The core indicators will focus more on "health" and "sustainability," including brand desirability and reputation, customer loyalty and satisfaction, dealer network health, and sustainable profitability. 2026 will be the year when a series of our strategic adjustments begin to show results. Models equipped with the locally developed new-generation infotainment system will be launched successively, the all-electric Cayenne and more China-exclusive models will be introduced to the market, dealer network optimization will enter a new stage, and the brand experience will be elevated to a higher level. We expect to make significant progress on these deeper "quality" indicators, building a sustainable development system characterized by a "strong brand, beloved by customers, win-win for partners, and healthy business."

Question: Looking back on 2025, if you were to score the performance of Porsche and yourself, what score would you give? Why? Perschke: Rather than giving a score, I prefer to summarize Porsche China's performance in the extraordinary year of 2025 with three keywords: Adjustment, Resilience, and Value. Adjustment: 2025 was a challenging year. We faced the market's dramatic changes head-on and, with a positive and pragmatic attitude, proactively conducted a series of profound strategic adjustments. This covered the rebalancing of product strategy, the quality improvement optimization of the dealer network, and the comprehensive upgrade of the localized R&D system. We did not avoid problems but chose to face reality and take decisive action, laying a more solid foundation for future development. Resilience: In the face of short-term market fluctuations and various external opinions, we maintained strong strategic resilience. We adhered to the core principle of "quality over quantity,"坚持对中国市场的长期承诺, and remained fully confident in the core value of the Porsche brand. We believe that time rewards those who act sincerely and focusedly. Value: This year, all our work revolved around "value." We were committed to defending and enhancing the brand's long-term value; by launching more attractive products and upgrading customer experiences, we created higher use value and emotional value for owners; through network optimization and providing support, we worked with dealer partners to build sustainable business value. We firmly believe that only by creating genuine value for customers, partners, and the brand can we navigate the changing times steadily and go the distance. As for me personally, 2025 was a year of deep learning and listening. I spent most of my time engaging in candid exchanges with our team, dealer partners, and customers. I am proud of the dedication and professional attitude of the entire team and am full of confidence in the future. We are going all out to handle everything within our control; for the rest, we leave it to time.