The closure of the Shijingshan outlet is not an isolated case. On December 25, Porsche China confirmed to a reporter that the sales operations of Porsche Centre Beijing Shijingshan will be terminated, with plans to reduce its sales network in the Chinese market to approximately 80 outlets by 2026. Concurrently, facing intensified competition in the pure electric vehicle segment and performance pressures in the Chinese market, Porsche has chosen to refocus on internal combustion engine vehicles and has introduced a "Win Back China" strategy. Industry insiders point out that for Porsche to achieve its "Win Back China" goal, it requires far more than just channel contraction and powertrain adjustments; the key lies in undergoing a deep, systematic localization transformation. It must launch truly competitive infotainment systems and smart experiences that meet the exceptionally high expectations Chinese consumers have for intelligence, which also demands granting its Chinese R&D center greater autonomy in decision-making.
A recent visit revealed that the long-operating Porsche Centre Beijing Shijingshan is approaching its final days. A sales consultant at the center indicated that the 4S store will close next year, with the current Taycan pure electric model available at a discounted price of over 700,000 yuan, equivalent to a 25% discount. "This outlet is offering slightly larger discounts because it's preparing to close, although after-sales service will be maintained for some time. The complimentary electric vehicle maintenance services provided by the store can also be used at any other Porsche outlet." Regarding the network adjustments for Beijing's 4S stores, Porsche China stated that in response to the multiple transformations and complex challenges brought by the rapid development of China's luxury automotive market, it is actively planning a new blueprint for its retail network in the Beijing area. Through strategic adjustments to the retail network layout, it aims to comprehensively enhance operational efficiency in the capital region, optimize customer experience, and expand service coverage.
Recently, Porsche China and the relevant dealer group decided to terminate the daily sales operations of Porsche Centre Beijing Shijingshan, with its related responsibilities to be assumed by other authorized Porsche centers in the same city. After-sales services will maintain their original standards unaffected. Relevant staff will proactively contact the store's customers to make appropriate arrangements based on their actual needs. In the future, Porsche will continue to evaluate development opportunities with its dealer partners. Beijing remains a strategic stronghold for Porsche's development in China. Facing evolving consumption trends and shifts in the market landscape, Porsche will adhere to a value-oriented strategy, proactively optimize its retail network, and fulfill its commitment to deepening its presence in the Chinese market with more稳健的步伐. The closure of the Shijingshan outlet is not an isolated case. On October 28, Porsche Centre Beijing Chaoyang opened; this outlet is Beijing's first directly operated store built under the "Retail 2.0" concept, resulting from the merger and upgrade of the former Porsche Centre Beijing Jinshan and Porsche Centre Beijing Chang'an. Porsche China CEO Michael Perschke revealed that by the end of this year, Porsche's 150 sales outlets will be reduced to 120; by the end of 2026, the sales network will be further adjusted to approximately 80 outlets. "The focus of the layout is to ensure coverage of all core cities and provinces, supplemented by after-sales service outlets."
While the retail network continues to contract, Porsche's product strategy in the Chinese market has also undergone a significant shift. Perschke admitted that the pace of innovation in the Chinese market is astonishing, with "the number of products and the speed of updates evolving rapidly." In the face of such fierce competition, Porsche has chosen to adjust its strategic direction. As Porsche's first pure electric model, the Taycan achieved impressive results initially upon launch. However, the Chinese market has since seen a rapid emergence of numerous excellent pure electric sedans across all price segments, gradually diluting the Taycan's market advantage. "Many local models are very well-aligned with Chinese customer needs, which we see as motivation to face the challenge head-on." Against this backdrop, Porsche has also decided to slow its electrification push and re-elevate the strategic priority of internal combustion engine vehicles.
Perschke stated that Porsche's strategy is to "Win Back China," but the focus is not on returning to past sales volumes; rather, it is on strengthening brand power and customer loyalty. A key initiative involves adjusting the product strategy – refocusing more intently on internal combustion engine models. "Currently, competition in electric vehicles is mainly concentrated in lower price segments; the higher price segments are currently favoring range-extender models, while in the truly high-end segment, internal combustion engine vehicles still hold significant importance." Based on market considerations, the large SUV positioned above the Cayenne that Porsche plans to launch will first be introduced with an internal combustion engine version, and the company will also launch models in the B-segment SUV category equipped with internal combustion engines and plug-in hybrid systems. However, Porsche has not completely abandoned electrification; the company plans to launch the all-electric Cayenne at the 2026 Beijing Auto Show, followed closely by the all-electric 718. According to sources close to Porsche, the 2026 all-electric Taycan has already received upgrades to its infotainment system. "There are no current models available at terminal stores yet, but it is certain that both human-machine interaction and intelligent features have been enhanced."
Behind this strategic shift lies performance pressure. Financial reports show that Porsche's global sales for the first three quarters of 2025 fell 6% year-on-year to 212,500 vehicles, with sales in China amounting to only 32,200 units, a 26% decrease year-on-year, nearly two-thirds lower than the peak of 95,000 units in 2021. The pressure on profits is even more pronounced; Porsche's operating profit for the first three quarters of 2025 was a mere 40 million euros, a 99% year-on-year plunge, with challenges in the Chinese market cited as a core reason.
Currently, Chinese domestic brands are leveraging complete supply chains to achieve cost advantages, with product capabilities improving rapidly. Perschke believes this is a challenge faced by all Western manufacturers, and since Porsche's average selling price is high – with an average manufacturer's suggested retail price excluding VAT around 1 million yuan – the impact is more significant. "We consistently adhere to the long-term principle of balancing supply and demand and maintaining brand value. In the Chinese market, chasing short-term market share often fails to secure a long-term future." Porsche is accelerating local R&D. It established an R&D center in Shanghai in early November, focusing on developing solutions for the Chinese market, including the next-generation infotainment systems for models like the 911, Cayenne, Taycan, and Panamera. From an industry perspective, the rapid rise of Chinese autonomous premium brands in terms of product capability and intelligence, coupled with widespread significant price reduction strategies adopted by traditional luxury brands, has collectively squeezed Porsche's target market, leading to an overall contraction in demand. "Therefore, large-scale 'slimming down' aims to eliminate inefficient outlets and concentrate resources to ensure the profitability of core retained dealers; it is an inevitable choice for responding to market downturns and optimizing operational efficiency," said Wu Zewei, a special researcher.
Wu Zewei further pointed out that Porsche's refocus on internal combustion engine vehicles can, in the short term, help stabilize its core business and improve its deteriorating financial situation. However, in the long run, this might represent a temporary "correction." The success of this strategy depends on its ability to overcome the technological challenges of next-generation electrification and intelligence while maintaining profits from internal combustion engine vehicles, rather than simply delaying the transition. For Porsche to achieve its "Win Back China" strategy, it requires far more than just channel contraction and powertrain adjustments; the key lies in undergoing a deep, systematic localization transformation. "It must launch truly competitive infotainment systems and smart experiences that meet the exceptionally high expectations Chinese consumers have for intelligence, which also demands granting its Chinese R&D center greater autonomy in decision-making." Lin Xianping, Deputy Secretary-General of the Executive Committee of the China Urban Expert Think Tank and Associate Professor at Zhejiang University City College, believes that for Porsche to win back the Chinese market, it should continuously strengthen its brand's luxury and performance image, deepen localized products and marketing, and enhance cooperation with Chinese technology and energy companies to integrate into the local ecosystem. Simultaneously, it must flexibly adjust its electrification pace to avoid falling behind in the new energy vehicle race.
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