On April 29, German luxury automaker Porsche released its financial results for the first quarter of 2025. The company reported revenue of €8.86 billion, down 1.7% year-on-year, and operating profit of €760 million, a sharp 40.6% decline. Its return on sales dropped to 8.6%, compared with 14.2% in the same period last year, marking the lowest level in recent years.
The steep decline is closely tied to weaker global sales. Porsche delivered 71,470 vehicles in Q1, down 8% year-on-year. Germany and China, historically two of Porsche’s strongest markets, saw significant drops: German sales plunged 34% to 7,495 units, while China fell 42% to just 9,471 units, now representing only 13.25% of global sales, compared with a peak share of 30%.
Elsewhere, Europe (excluding Germany) was down 10% to 18,017 units, while overseas and emerging markets grew 6% to 15,789 units. North America emerged as Porsche’s growth engine, with 20,698 units sold, up 37%, making it the company’s largest single market.
The results underscore Porsche’s growing crisis in China. After delivering 79,283 units in 2023 (-15% YoY) and 56,887 units in 2024 (-28% YoY), the brand continues to lose ground amid a slowing economy and intensifying competition from local EV makers such as BYD.
During the Shanghai Auto Show, CEO Oliver Blume reportedly remarked that Porsche’s EV sales in China remain low, sparking speculation about a potential withdrawal of EVs from the Chinese market. Porsche China later clarified: “This is a misinterpretation. Porsche remains fully committed to electrification in China. Our next all-electric model will be the new Cayenne, to debut later this year.”
In response to the weak quarter, CFO Jochen Breckner said: “The macroeconomic environment remains challenging. We cannot fully escape these pressures, but we are doing everything we can to respond.”
Porsche also revised down its 2025 outlook, now expecting full-year revenue of €37–38 billion (previously €39–40 billion), net cash flow margin of 4–6% (previously 7–9%), and a return on sales of 6.5–8.5% (down from at least 10–12%).
Meanwhile, Porsche announced that its China R&D center has completed a strategic restructuring and will begin operations in the second half of 2025. The new facility will focus on developing integrated infotainment and driver-assistance solutions tailored for the Chinese market, with the first localized infotainment system set to debut on Porsche models in 2026.
