Porsche closed 2025 with its sharpest drop in global vehicle deliveries in more than a decade, underlining the growing pressure facing Europe’s premium carmakers as demand weakens and competition intensifies—particularly in China.
The German sports car manufacturer delivered just under 280,000 vehicles worldwide last year, a decline of 10 percent compared with 2024. It marked Porsche’s steepest annual fall since the aftermath of the global financial crisis in 2009, when sales plunged far more dramatically amid collapsing demand.
The downturn reflects a challenging year of strategic recalibration for Porsche. As appetite for electric vehicles cooled in key markets, the brand delayed several EV launches and shifted its focus back toward combustion-engine models that continue to generate stronger margins. That pivot came at a cost, with Porsche estimating a €1.8 billion hit to earnings linked to delayed electrification plans and restructuring.
China proved to be the toughest market. Deliveries there fell by more than a quarter, as slowing luxury demand and aggressive competition from domestic electric brands eroded Porsche’s position. The company has begun scaling back its dealer network in the country, where rivals including BMW and Mercedes-Benz also suffered double-digit declines, though Porsche underperformed both.
Europe offered little relief. Sales dropped sharply in Germany and across the wider region, weighed down in part by new EU cybersecurity regulations that came into force mid-2024. Those rules forced carmakers to adapt vehicle software systems, leading to supply disruptions for models such as the 718 and the combustion-engine Macan. The absence of the ICE Macan in 2025 inflated comparisons with the previous year, amplifying the apparent decline.
North America was a relative bright spot. Porsche managed to hold sales steady, outperforming Audi and Mercedes, both of which saw notable drops in the region. Analysts suggest Porsche benefited from a pull-forward effect, with dealers registering inventory early to hedge against potential U.S. tariffs. Even so, the company remains exposed, lacking a U.S. production base and facing an estimated tariff-related cost of around €700 million.
Despite the turbulence, Porsche continued to advance its electrification goals. Fully electric models accounted for just over 22 percent of global deliveries in 2025, with plug-in hybrids making up a further 12 percent. While the company remains within its stated target range, the past year has highlighted the delicate balance premium manufacturers must strike between electrification ambitions, regulatory pressures and shifting consumer demand.