Porsche cuts 2025 outlook as China sales slump; Shares fall
By Frank Prenesti
Date: Wednesday 12 Mar 2025
(Sharecast News) - Porsche on Wednesday slashed its 2025 outlook, citing ongoing problems in China and falling electric vehicle demand globally.
The luxury German automaker, part of the Volkswagen group, said total sales last year fell 1% to €40.1bn, while operating slumped by 23% to €5.6bn. Sales in China fell by almost a third in 2024. Porsche warned its 2025 margin would hit only 10-12% in light of reduced vehicle sales and an increase in expenses.
It expects revenue to hit €39bn - 40bn this year and a medium-term return on sales of between 15% and 17%, compared with a previous target of 19%. The revised guidance did not factor in 25% tariffs threatened by US President Donald Trump.
Porsche said it would assess whether to pass on any tariff costs to consumers, but it hoped a "sensible" levy regime would be negotiated.
Shares in the company fell 5% in Frankfurt.
"In view of the changed circumstances, we have adjusted our product strategy in all segments," said chief executive Oliver Blume.
The company also said it would undertake a major rescaling of operations that would impact the bottom line with new investment in new models, software and batteries. It warned market conditions would stay "very challenging and for competition in China to intensify".
Porsche in February said it would invest €800m into combustion engine and hybrid cars this year in a pivot away from electric vehicles. It also slashed jobs to bolster its balance sheet.
Reporting by Frank Prenesti for Sharecast.com
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