Porsche's endeavor to market luxury akin to a Rolex watch with incredible history of innovation and performance. Meanwhile the consumer finds everything they want in a smartwatch.
Porsche, the renowned German luxury car brand, faced a significant setback with a 29% sales drop in China during the initial nine months of this year.
Consequently, the company plans to downsize its workforce in China by 30%. This decline impacted Porsche globally, resulting in a 7% decrease in sales, with a total of 226,026 units sold between January and September.
Experts predict potential job cuts of up to 8,000 from Porsche's current 42,000 employees in the foreseeable future. Despite aiming for 50% of sales to be from electric and hybrid cars by 2025, with a vision for 80% fully electric by 2030, Porsche had to revise its electric vehicle (EV) sales target due to low customer demand.
While Porsche faces challenges, Xiaomi's SU7 emerges as a strong rival in China. With production commencing in December 2023, the SU7, priced at $29,600, boasts high-tech features and has rapidly become a top seller, delivering over 20,000 units in October and November. Xiaomi now targets 130,000 deliveries this year, surpassing its initial goal of 100,000 in November.
European OEMs believe that redesigning existing ICEV models will lead to new BEVs. However, despite developing modular EV platforms, EU OEMs struggle to meet Chinese buyers' expectations for a genuine digital customer experience in modern electric vehicles. Chinese customers find European EVs outdated and unexciting, seeking different values and features in their products.
In a shifting market landscape, where customer preferences evolve, Porsche's endeavor to market luxury akin to a Rolex watch with incredible history of innovation and performance. Meanwhile the consumer finds everything they want in a smartwatch.
I have serious concerns about the existing brands as we are in the greatest change in transportation in 120 years.
Would you purchase a Xiomi or BYD if you could? Why or why not?
https://www.linkedin.com/posts/jeffbowman_xiaomi-porsche-ev-activity-7278574998519259136-L7SE?utm_source=share&utm_medium=member_desktop |
