German automakers are not only dependent on the Chinese market, they also have many factories in China, for example, Volkswagen has about 26 factories in the mainland. However, Porsche, the “famous sports car Family“, believes that “Made in Germany” has brand significance and has no intention of building factories in the mainland.
The foreign media quoted Porsche CEO Oliver Blume as saying that there was “no point” in moving production to other countries because European production is still a “quality guarantee” for the Chinese market, while the reputation of “Made in Germany” is still a major factor. The “Made in Germany” reputation is also worth the higher costs, suggesting that Porsche has ruled out the possibility of building a factory on the mainland. Moreover, Porsche currently has six models and sold 272,000 cars last year, which is not enough production to support a Chinese production strategy.
Blume said the premium car market in China is growing faster than expected, and although Porsche is not keeping up with the trend, it is because the plant’s products are “100 percent European” and Porsche is able to maintain more stable prices than its competitors with production bases in China, which would require significant discounts to stimulate sales. Porsche is also able to maintain more stable prices, as opposed to competitors with production bases in China, who need to offer significant discounts to stimulate sales.
According to reports, Porsche’s car sales are about 1/3 contributed by the Chinese market, China is also the only market where the carmaker’s sales increased last year, while Porsche’s sister brand Audi (Audi) China sales in the same period increased by 5.4%, BMW grew by 7.4%, Mercedes-Benz grew by 11.7%, the three carmakers are also increasingly borrowing Chinese joint ventures, manufacturing cars for the Chinese market.
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