Porsche continues its large-scale business restructuring in China. As of June 30, the company is terminating dealership agreements with four regional car dealerships. This is another stage of the sales network reduction program, caused by falling demand and deteriorating financial performance.
The closures affected dealerships in several cities. In Huai'an, Porsche car sales have been completely discontinued, and customer service has been transferred to neighboring centers in Yangzhou and Xuzhou. In Jining, the dealer will lose its official seller status and become part of a larger regional trading group.
These measures are part of a broader strategy. Porsche previously announced its intention to reduce the number of dealerships in mainland China from approximately 150 to 80. The company expects to focus on the most efficient sites to reduce operating costs and improve business sustainability.
The reasons for the changes are related not only to the decline in sales of the brand itself, but also to the crisis of automotive retail in China. According to the China Automobile Dealers Association (CADA), 81.9% of dealers today sell new cars below cost, trying to meet manufacturers' plans. The average profit margin for new car sales has dropped to minus 25.5%, and the loss from each sold car reaches 20-30 thousand yuan (about 227-340 thousand rubles).
The difficult situation has already forced Porsche to abandon some models in the Chinese market, including the Taycan Sport Turismo, and to launch a program to cut about 3,900 jobs worldwide.
Financial results confirm the scale of the problem. By the end of 2025, Porsche's global deliveries decreased by 10% to 279,449 vehicles, while sales in China plummeted by 26% to 41,938 cars. In the first quarter of 2026, the decline continued: global deliveries decreased by another 15%, and the Chinese market showed a 21% decrease.
At the same time, the company is changing its approach to car development. Porsche is focusing on deeper adaptation of models for China, including the development of digital services, software, and technologies for electric vehicles. This should help the brand regain competitiveness in a market where local manufacturers are increasingly offering modern models with advanced electronics and intelligent systems.