Porsche has just posted its sharpest annual sales decline in 16 years, delivering 279,449 vehicles globally in 2025—a 10% drop from the 310,718 units sold in 2024. The iconic automaker finds itself facing strong headwinds, particularly in China, where deliveries plummeted 26% year-on-year to 41,938 vehicles. This decline outpaced even the slumps seen by its German peers: BMW’s China sales fell 12.5%, while Mercedes-Benz was down 19%. The luxury vehicle market in China, especially above the 700,000 yuan ($97,500) bracket, has been pummeled by weak demand and fierce competition from homegrown electric brands like the Huawei-JAC Maextro S800, which outsold the combined December deliveries of the Porsche Panamera, BMW 7 Series, and Mercedes-Maybach S-Class.
North America Steady, Europe Struggles
While China’s luxury car appetite cooled, North America held steady for Porsche, remaining its largest regional market with 86,229 units delivered—the same as last year. Europe, on the other hand, was a different story. Deliveries in Germany dropped 16% to 29,968 units, and Europe minus Germany saw a 13% dip to 66,340 vehicles. Part of the European decline stemmed from new EU cybersecurity regulations that forced Porsche to halt sales of certain combustion engine models like the 718 and Macan, disrupting the supply chain and boosting the baseline for 2024.
Electric Vehicles Gain Ground
In a year of double-digit losses, Porsche did find a bright spot: electrification. Fully electric vehicles made up 22.2% of worldwide deliveries, with plug-in hybrids accounting for another 12.1%. For the first time, electric Porsches outnumbered those with combustion engines in European deliveries (57.9%). Despite these gains, the Porsche Taycan EV faced its own struggles, with deliveries falling 22% in 2025—on top of a 49% drop the previous year.
The Macan, buoyed by the new Macan Electric, was Porsche’s top seller at 84,328 units, showing resilience even as the brand navigated regulatory hurdles and shifting consumer tastes. Porsche China President and CEO Alexander Pollich described 2025’s results as “within internal expectations,” and the company reiterated its commitment to a flexible drivetrain strategy—internal combustion, plug-in hybrid, and fully electric—to adapt to global preferences.
As Porsche repositions itself for a changing auto landscape, 2025’s results underscore the tough choices ahead in the crowded luxury segment, where value orientation and technological agility may make all the difference.
