The Sunday News
SHANGHAI—German luxury sports-car maker Porsche AG PAH3.XE +0,60 percent expects low double-digit sales growth in China this year as it pushes to increase its number of Chinese dealerships by 25 percent this year, according to its regional chief.
The optimistic forecast comes despite lower China sales in May, which the executive said was expected.
Mr Deesch Papke, president and chief executive of Porsche (China) Motors, said in an interview on Friday last week that the May sales decline represented just 40 cars. He called it a “marginal drop” and a “preplanned” one. “It was in the budget,” he said.
For the first five months of this year, Porsche’s unit sales in China were up 9,5 percent over the same period last year, to 16 465 cars.
Until recently, most exotic car makers enjoyed sales-growth rates in the high double digits in China, which has emerged as a top market for many. But it is becoming an increasingly challenging place as Beijing pursues its crackdown on conspicuous consumption and the nation’s economy slows.
Other luxury car makers have offered more sober outlooks for China. Earlier this year, Volkswagen AG’s VOW.XE -0,13 percent Lamborghini said it expected growth for so-called super sports cars in China to cool to close to 5 percent this year from about 15 percent last year. Ferrari SpA said in April it expected only a slight increase in China sales this year.
May sales for Porsche, which is also VW-owned, were down 1,3 percent from a year earlier to 3 164 vehicles. The company didn’t give reason for the decline when it issued the report two weeks ago.
“We’re confident that the year is going to be double-digit in any case on last year,” said Mr Papke, who was speaking on the sidelines of a company event in Shanghai. He then specified “low double-digit.”
Last year Porsche’s China sales were up 20 percent to 37 425 cars.
Porsche, which currently has 68 dealers, and aims to have 85 by the end of this year and just over 100 by the end of next.
Mr Papke said the recently launched Macan, a compact sport-utility vehicle, will be available at dealers in China beginning in July. He declined to say how many orders have been received.
“Every day the orders are coming in. We look forward to having the same success [with it] as Cayenne,” he said, referring to another of Porsche’s SUVs.
Porsche hopes to increase sales of its core sports cars, including the 911, Boxster and Cayman.
“Year on year we get stronger and stronger in sports cars” in China, Mr Papke said. — CNN
