Porsche Sales Decline in First Quarter, Company Cautious Heading Into Q2

Porsche Taycan is displayed at a car show in Oslo, Norway, on Nov. 10, 2021. (Victoria Klesty/File Photo/Reuters)

Porsche’s first-quarter sales declined by 5 percent as the company struggled with the resurgence of the COVID-19 pandemic in certain parts of the world and persistent supply chain issues.

During the January–March 2022 period, Porsche sold 68,426 vehicles worldwide as compared to 71,986 vehicles during the same period last year, according to an April 14 news release by the company. However, the decline was not uniform globally. In Europe, sales rose by 18 percent, driven by German demand rising by 16 percent.

In the Americas, sales fell 19 percent, with the number of units sold in the United States tumbling by 25 percent. The Asia-Pacific, Africa, and Middle East regions saw sales decrease by 10 percent, with Chinese sales falling by a fifth. China, the single largest market for Porsche, saw deliveries fall from 21,991 units to 17,685.

Despite fewer sales, Detlev von Platen, member of the Executive Board for Sales and Marketing at Porsche, insisted that the sales team and dealers “performed well” in the first quarter given the “exceptional circumstances” affecting the automotive industry.

“The resurgence of the coronavirus in some regions such as China, coupled with ongoing significant supply and logistical challenges, have put us to the test. At the same time, our products continue to be in high demand among customers worldwide–equally in Europe, the Americas, and China,” he said.

Porsche SUVs courted the biggest demand with the Cayenne delivered to 19,029 customers, Macan to 18,329, all-electric Porsche Taycan to 9,470, sports car 911 to 9,327, and Panamera to 7,735 customers. In addition, there were also 4,536 deliveries of 718 Cayman and 718 Boxster.

Moving into the second quarter, the company remains “guarded” in light of the ongoing war in Ukraine. The impact on Porsche’s business activities is being “continuously” reviewed.

Despite challenges, the company is “optimistic” about the overall outlook, and will not make any compromises with regard to creating “emotive and unique experiences” for customers, Platen said.

Like Porsche, other major car brands have also seen sales tumble in the first quarter. Mercedes-Benz has reported a 15 percent decline in deliveries during the period. For Audi, sales fell by 17 percent while deliveries of the Volkswagen passenger brand declined by 26 percent.

According to a March report by the European Automobile Manufacturers’ Association (ACEA), new car registrations across the E.U. had decreased by 6.7 percent in February compared to the same month a year back. This was the weakest sales volume for February since ACEA began to keep records.

“From January to February 2022, total registrations of new cars in the European Union declined by 6.4 percent compared to the same period last year,” the report said.

“Again, looking at the four largest markets, Italy saw the largest drop (-21.1 percent), followed by France (-15.7 percent). On the other hand, markets in both Germany (+5.6 percent) and Spain (+4.2 percent) continued to expand.”