(Yicai) June 6 -- Porsche has lowered its prices in China by more than 30 percent to clear inventory, as the German Luxury carmaker’s sales in the world’s largest automotive market continue to fall, according to authorized dealerships.

The price of the 2025 Cayenne and the 2024 Panamera were both trimmed by more than 30 percent to CNY900,000 (USD125,340) and CNY1 million (USD139,260), respectively, an authorized Porsche dealership in Shanghai told Yicai yesterday. Moreover, Porsche is offering a 20 percent discount on the newest version of the Cayenne, which was released last month.

Porsche’s sales in China declined for three consecutive years after peaking at 95,700 units in 2021. They fell 2.5 percent to 93,286 units in 2022, 15 percent to 79,283 units in 2023, and 28 percent to 56,887 units last year. In the first quarter of this year, sales plunged 42 percent to 9,471 units from a year earlier.

These steep discounts are not the norm, and they will end for good once the inventory is cleared, the dealerships explained.

The rapid changes in the Chinese market have outpaced Porsche’s ability to adapt to shifting consumer demands, Chief Executive Officer Oliver Blume said during the company’s latest annual earnings conference call. Porsche will not engage in the price war, he added.

Porsche China announced in April that it will establish a research and development center in Shanghai’s Jiading district that will become operational in the second half of this year.

The China R&D Center will focus on developing integrated hardware, infotainment, and driver assistance systems tailored to the Chinese market, with its first China-specific infotainment systems expected to be integrated into Porsche models next year.

Last December, The Paper reported citing employees that Porsche China was optimizing costs at various departments and projects, reorganizing its structure, and cutting human resources, administrative, travel, and training expenses to maintain sustainable growth in the fast-changing Chinese automotive market.

Porsche also plans to gradually reduce its sales network in China to around 100 outlets by 2027 from 140 at the end of last year.

Editor: Futura Costaglione