Porsche China to Cut Dealerships to 80 by 2026 Amid Global Sales Slump

Porsche China is advancing a dealer network optimization plan, aiming to reduce the number of dealers in the Chinese market from the current 114 to 80 by 2026. On June 30, 2024, Porsche Centers in Jining (Shandong), Huai’an (Jiangsu), and Xingning, Nanning (Guangxi) ceased dealership operations. The Wuhu (Anhui) Porsche Center will halt sales operations on July 31, retaining only after-sales services. These adjustments have reduced the total number of dealers in China from 116 to 114. This downsizing strategy extends beyond China. In 2023, the Zhengzhou Zhongyuan Porsche Center closed due to Dongan Group suspending operations. Additionally, Porsche has shut down approximately 200 high-power DC Premium charging stations it built itself in China and is implementing a global strategic restructuring, including divesting stakes, streamlining functional departments, and terminating subsidiary operations, which is expected to cut around 3,900 jobs. Performance pressures are the primary driver behind these adjustments. In 2025, Porsche reported a 9.5% year-over-year decline in global revenue and a 92.7% drop in sales profit, with its return on sales plummeting from 14.1% to 1.1%. The company attributed this to special charges of approximately €3.9 billion related to product strategy realignments, additional costs from its battery business, and the impact of U.S. tariffs. During the same period, global deliveries fell by 10% year-over-year, while deliveries in China declined by 26%, marking the fourth consecutive year of decline. Michael Lohscheller, CEO of Porsche AG, stated that the company will focus on improving profitability for both existing and future models, a direction it will maintain even if sales volumes decrease.