Porsche closes four dealerships in China amid plummeting sales and profit squeeze

Porsche has shuttered four dealerships in China as part of a sweeping cost-cutting drive after the brand’s sales in the country plunged 21% in the first quarter of 2026. The closures in Wuhu, Jining, Huai’an, and Nanning took effect on June 30, reducing Porsche’s dealer network in China from 116 to 80 locations. The move follows a 26.3% drop in deliveries in 2025 compared with 2024, when Porsche sold 41,938 vehicles in China, and a further 21.0% decline in Q1 2026, with just 7,519 units sold versus the same period last year. Each dealership is reportedly losing between 20,000 and 30,000 yuan (approximately $2,941 to $4,413 USD) per delivery, pushing Porsche to slash unprofitable models such as the Taycan Sport Turismo and decommission around 200 DC fast chargers across the country. The restructuring plan also includes streamlining departments and eliminating roughly 3,900 jobs globally. Porsche’s leadership has framed the cuts as necessary to restore profitability amid a broader market shift away from electric vehicles in China, the world’s largest EV market. Analysts warn that Porsche’s narrow product lineup leaves it more exposed than larger rivals with broader portfolios, potentially setting the brand up for a prolonged downturn in the region.