Porsche CEO Says It ‘Got It Wrong’ in China as Luxury Car Market Collapses 80%

Strategic Bet Didn’t Pay Off

Outgoing Porsche CEO Oliver Blume reflected on the challenges he faced during his tenure, including a sharp sales decline in China—one of Porsche’s largest markets alongside the U.S. and Germany. In an interview with Germany’s Frankfurter Allgemeine Zeitung, Blume said the Chinese luxury market has collapsed by around 80 percent, a downturn that led to missed sales targets and placed added strain on the company’s financial performance.

Blume outlined several factors behind Porsche’s struggles in China. One was an aggressive growth strategy that ultimately backfired, as demand failed to materialize at the level the company had anticipated. He also pointed to a lack of flexibility in the brand’s product lineup, particularly when it came to powertrain offerings.

The Macan Moment

A key example of this was the Porsche Macan. The German automaker moved the next-generation Macan to an all-electric platform, effectively removing future combustion-engine and hybrid alternatives from the model line. Blume acknowledged that Porsche “got it wrong” with the Macan. However, he emphasized that, based on the data available at the time, the company believed it was making the correct strategic call.

That broader downturn is echoed by a more recent report from CarNewsChina, which highlighted visibly reduced activity at some Porsche dealerships in China. Deliveries reportedly fell 26 percent year over year to about 32,200 units in the first three quarters of 2025, compared with a peak of around 95,000 vehicles in 2021. Dong’an Holdings, operator of Porsche’s dealer network in the country, said employees at affected locations have been placed on leave, with no clear timeline yet for when operations will fully resume.

Looking ahead, Blume expressed confidence that there will still be a viable market for combustion-powered vehicles—think of the Porsche 911—over the next 10 to 15 years. He said this view was affirmed through discussions with politicians in China.

A Different View of the Long Term

Blume also addressed the possibility of building Porsche models in Volkswagen factories in China, noting that the idea has not been ruled out, though he admitted the stakes would be high. Currently, most Porsche models are produced at the brand’s German plants in Zuffenhausen and Leipzig, while the Cayenne is manufactured in Slovakia.

Although Blume is stepping down as Porsche CEO, he will remain at the helm of the Volkswagen Group. He is set to be replaced by Michael Leiters, the former McLaren CEO, effective January 1, 2026.