(Yicai) May 28 -- Porsche's Chinese arm and its local dealers said they will seek effective ways to address market changes together, including business policies, customer service, and electrification transition after the German high-performance carmaker's sales in China plunged.

During industry changes and transformation, carmakers must actively listen to dealers' voices from the frontline, Porsche China said yesterday. Only through closer cooperation and mutual support can they better meet the needs of Chinese consumers in a localized manner, it added.

Porsche's sales in China fell 15 percent to 79,283 units in the 12 months ended Dec. 31 from the prior year, while its global sales rose 3.3 percent to 320,221 units, with several markets, including North America and Europe, seeing year-on-year gains. It also sold only 16,340 units in the country in the first quarter this year, down 24 percent from a year earlier.

According to earlier reports, Porsche dealership investors sent a letter to the carmaker at the end of last month to protest its demand for dealers to increase inventory despite plunging sales. They also requested compensation from the firm for recent sales of cars at a loss, with around 65 percent of dealers ceasing orders of new vehicles.

Porche's sales in China might stop falling around 2025, the firm said on its annual earnings conference call. In the fuel-powered cars field, the Stuttgart-based company still has a large fan base, with the brand possessing significant advantages, Vice Chairman Lutz Meschke noted.

Porsche is also vigorously promoting its electrification strategy. It has debuted the Macan EV and the Taycan all-electric models in China, while the third-generation Panamera and the 911 were launched as plug-in hybrid electric vehicles. It also plans to launch the 718 EV, the Cayenne EV, and a new high-end electric SUV.

In addition to accelerating its electrification shift, Porsche has continuously increased its research and development efforts in China over the past two years.

Porsche has set up an R&D matrix in China, including the Porsche R&D China branch, Porsche Engineering, and Porsche Digital, Michael Kirsch, president and chief executive of its local unit, previously told Yicai. It hopes to create more content that aligns with the Chinese market and deliver its value from the country to the world, he added.

Editor: Martin Kadiev