Porsche’s Luxury Electric Vehicles seem Promising during China’s Sales

During China’s Auto Show held in Beijing, a lot of interest was clear towards luxury and electric vehicles. It is important to note that the show had more than 200 fewer cars than the Shanghai exhibition in 2019. The drop is undeniable from 1500 to 785 vehicles, 129 to 82 global debuts, and 125 to 100 auto brands. One of the reasons for the decline is the coronavirus pandemic, no doubt.

As much as coronavirus has affected car sales, the situation was already bad even before then pandemic. In fact, a drop in car sales has been happening in the last three years. As of 2018, the car industry was contributing a sixth of all the jobs in China. In addition to that, it was also contributing up to 10% of the country’s retail sales. The figures decreased due to COVID-19. However, there is hope for a better change since there is an increase in demand. The most preferred are the luxury electric vehicles.

One of the hopeful brands is the German Porsche. As of February, the company had registered a drop of 60%. Despite that, it believes that the sales this year will be the same as those of 2019 or even surpass that as far as China’s mainland and Hong Kong are concerned. According to a statement to CNBC by Jeff Puttfarcken, the brand’s CEO in China. Last year, Porsche sold over 86,000 vehicles, which increased by 8% from the previous year’s sale.

According to Jen, the psychology of consumers has changed because of the global pandemic. For instance, most people now prefer private instead of public means of transport. At the same time, many people are spending a lot of money buying luxury cars instead of traveling.

So far, so good for Porsche, given the fact that the monthly orders range above 9000. They even reached 10,000 in June. It is a good thing since China is Porsche’s largest market, contributing up to 34% of its global sales by the end of the first half of this year. Puttfarcken also doesn’t expect the demand to increase any time soon. If that will change, he thinks it will be in the middle of next year.

Porsche’s electric car costs about 1.1 million yuan, which is equivalent to $160,000. However, the company will soon be introducing a cheaper version, Taycan. The electric sports car will cost around 888,000 yuan, which will be in the same price range as its counterparts from Tesla. That will, beyond any reasonable doubt, increase the demand for the brand’s electric vehicles.