Porsche ended 2023 with 320,221 units delivered worldwide, 3 percent more than in 2022. Most of the sales were contributed by North America and Europe, with 86,059 cars (up 9 percent) and 102,659 units (up 18 percent) respectively. Germany contributed 47 percent (29,512 units) of European deliveries.

In a switch of importance, Europe has overtaken China as Porsche’s most important market region. Deliveries in China came in at just 79,283 units (down 15 percent).

For many years, China was Porsche’s most important market, with one in every three Porsche delivered worldwide went to China. However, sales have been sliding since 2022, when deliveries dropped 2 percent, before declining another 15 percent in 2023.

Porsche says the decline was due to “ongoing challenging economic situation in the region.

Although battery technology and EVs have pushed China’s automotive industry to new highs, Chinese consumers are not in a mood to spend and all Chinese manufacturers – from Chery to GWM to BYD -are focusing on emerging markets to soak up their excess inventory.

The real estate bubble is also weighing heavily on investment returns by many of Porsche’s high-end clientele.

At a recent annual gathering of the Zhejiang Chamber of Commerce in Shanghai, Guo Guangchang, founder of Fosun Group, one of the China’s largest conglomerates, said “The days of runaway growth have gone … Profitability in the future can only be extracted from craftsmanship, technology and good management.”

Porsche is expecting a difficult 2024, especially in China. Detlev von Platen, board member for Sales and Marketing said “It is therefore important that we continue to balance our sales structure and strengthen our overseas regions, particularly in the ASEAN markets. In 2024 we will focus more than ever on value-oriented growth and a stable sales level.”

ASEAN and emerging markets are becoming increasingly important, growing 16 percent – the highest of all Porsche’s market regions – to 52,220 units.

Malaysia is the first country outside of Germany to locally assemble a Porsche. The Inokom plant in Kulim currently builds the Porsche Cayenne.

Speaking at the opening of the Porsche line in Inokom in 2021, von Platen said “As Porsche is moving into a new era of mobility, Malaysia and the ASEAN region are gaining an increasing importance. This step now is part of a long-standing initiative to keep pace with rapidly evolving customer and market demands.”

The Cayenne remained as Porsche’s No.1 selling model, with 87,553 units (down 8 percent) delivered, contributing 27 percent of the company’s global sales. This is followed by Macan, with 87,355 units delivered (up 0.7 percent).

Porsche says the reduction in Cayenne deliveries was due to the staggered launch the new 2023 model.

Even as buyers delay their purchase of Porsche SUVs, the company’s sports cars are still seeing strong demand, demonstrating the pricing power of the 911’s and 718’s timeless appeal.

Deliveries of the Porsche 911 are up 24 percent to 50,146 units while the 718 Boxster and 718 Cayman were collectively up 13 percent, totaling 20,518 units.

The fully electric Taycan recorded 40,629 units delivered, up 17 percent.

The Panamera, now in its final year, recorded 34,020 deliveries. A new generation Panamera will be launched later this year.