"Porsche" assures traders in China with the stumbling of the sales of electric cars

‘Porsche’ is in conversation with Chinese traders with the aim of improving the relationship with them, at a time when sales of electric cars are forced to think the move away from cars with combustion engines. The German automotive business discusses with Chinese retailers how to adjust their business strategies and customer service with market changes, according to a statement. ‘Porsche’ did not provide details of the new direction, but said the two parties intended to work closer together. The “Porsche” share and other Western car manufacturers in the electrical car market in China have diminished, where local competitors raised their offers, and they gained a larger foothold. As the Chinese economy stumbled due to the real estate crisis, the total demand for electric vehicles decreased, which led to price cuts that led to the erosion of the final result of manufacturers and traders. The market share is being reduced, Chinese media reported that some “Porsche” traders in China are now claiming compensation for the sale of electric cars at a loss, and that they also objected to selling targets for this year. Last year, China acquired nearly a quarter of the total “Porsche” deliveries. The deliveries “Porsche” in the Chinese market fell by 15% in 2023, and sales continued this year, as the brand in the first quarter finished a 24% decline. The delivery rate to North America also dropped by 23% in the same period, but this is mainly due to the delay in the customs delivery. The tension between Chinese distributors and German car businesses is not new. Volkswagen’s commercial “Audi” mark in 2017 resolved a dispute with Chinese retailers by paying unveiled compensation. In 2015, BMW paid $ 820 million to China’s retailers to cover losses.