(Yicai) Dec. 24 -- Porsche China has confirmed that the Chinese arm of the German luxury carmaker will shut down all its self-built electric vehicle charging stations as part of a strategic shift.

Porsche China will gradually close its about 200 self-built EV charging stations from March 1 and turn to deep cooperation with leading third-party charging operators, with the name of the partner expected to be unveiled by March, the carmaker told Yicai on Dec. 22.

The shutdown only affects Porsche’s self-built exclusive EV charging stations in China, while charging stations at Porsche Centers, destination charging stations, and third-party charging stations that were integrated into its charging map will continue to operate normally, the carmaker noted.

Self-built charging stations are heavy assets and can become financial burdens when their utilization rate is insufficient, so the industry is shifting to joint construction with third parties to dilute costs, according to industry insiders.

Most drivers of Porsche battery EVs in China have their own private charging piles, and their driving radius is fixed, so their demand is different from that of mainstream new energy vehicle owners, the insiders noted.

Moreover, Porsche is slowing down its electrification process. The automaker has postponed its plan to launch BEV models and said it will release more fossil fuel and plug-in hybrid EV cars. It has also adjusted its new sports utility vehicle series positioned above the Cayenne from BEV to fossil fuel and hybrid models.

There is no luxury BEV segment in the Chinese automotive market now, Oliver Blume, chief executive officer of Volkswagen Group, said early this month. Even though the electric Cayenne has the possibility to seize this segment, it is too small, and the luxury tax makes it more difficult to succeed.

Porsche’s sales in China will not rebound in the short term, so the carmaker should downsize its channel network and production capacity to maintain high profits in a time of low sales, Blume noted.

Editor: Futura Costaglione