This German Automaker Could Stop Selling EVs in China

China’s EV segment is extremely competitive

China’s domestic automakers are pushing back against foreign competition at all levels with more affordable, powerful, and luxurious EVs. Some of the world’s largest automakers have lost market share before they even had time to respond. Now, it looks like premium brands are struggling as well, with one German brand considering pulling their EVs from the Chinese market by the end of the decade. Porsche has long been considered one of the industry’s most powerful premium brands, but China’s domestic EV manufacturers are undercutting and overpowering the German marque in price and performance, respectively.

Porsche is sticking to combustion engines

While several Volkswagen Group brands unveiled a handful of new EVs at the Shanghai Auto Show, Porsche took a different approach. The premium brand put two limited-edition variants of the 911 sports car on display, along with vintage models from the legendary nameplate’s past. Both models featured a combustion engine, but that isn’t going to fly with Chinese consumers.

Instead, Chinese customers are leaning into futuristic and luxurious EVs from domestic manufacturers. The Xiaomi SU7 sport sedan launched with styling similar to Porsche at a much lower price. Not only that, but the SU7 Ultra model delivers 1,548 horsepower and is priced from just under $73,000. For comparison, the most affordable Porsche 911 boasts just 394 horsepower and a six-figure price tag.

While the spirit of a gas engine might appeal to customers in other markets, it’s a losing strategy in China. The sheer price and power difference between Chinese EVs and gas-powered Porsche models is too far of a gap to bridge. As a result, Porsche sales have fallen off hard in the past few years, and that could mean some serious changes are in order for the brand’s Chinese strategy.

Porsche faces a serious decision

In September 2022, Porsche had a strong reputation among consumers, and its value soared past that of Volkswagen at its initial public offering. Since then, Porsche’s stock has fallen 44%, and is currently down over 20% in 2025. Even so, executives have dismissed concerns regarding Porsche’s sales in China.

Porsche CEO Oliver Blume indicated he wasn’t concerned about sales volume. Instead, he was more concerned with keeping Porsche a premium brand with cars that are a thrill to drive. Half of all new vehicles sold in China are EVs and hybrids, which presents a problem for Porsche’s combustion engine stance, though. There are just two all-electric Porsche models for sale in China: the Taycan and Macan. While Porsche doesn’t break down specific model sales by country, Blume indicated EV sales in China were low.

“We will see in the next two to three years whether Porsche exists as an electric brand here,” said Oliver Blume, Porsche CEO, at the 2025 Shanghai Auto Show.

The rapid growth of China’s domestic automotive industry has put foreign automakers in a tough spot. Chinese EVs significantly undercut foreign competition in price while offering a higher level of luxury and performance. While China’s automakers largely kept to low- and mid-priced segments, they’re expanding into the higher end of the market at a rapid pace. There, they’ll face off against premium brands like Porsche.

Whereas some automakers, like Buick, have developed models specifically for China, Porsche hasn’t followed suit. Instead, Volkswagen Group is taking a different approach to the Chinese market. Audi recently launched AUDI, a China-only all-electric sub-brand, with plans to introduce several new EVs starting in mid-2025. Volkswagen plans to launch more than a dozen EVs and PHEVs in China by the end of 2027 – but there’s nothing on the horizon for Porsche.

Final thoughts

Porsche wields plenty of influence as a premium performance brand around the world, but the roar of a flat six-cylinder engine doesn’t have the same appeal in China. The German marque’s low sales don’t exactly indicate a bright future, but it seems Porsche would rather not fight what it clearly sees as a losing battle in China. Instead, it looks like Volkswagen Group is trying to keep Porsche for the purists among us. Frankly, as a fan of Porsche, that’s fine with me – as long as it doesn’t doom the brand.