Porsche (POAHY) Stock Races Higher Despite China Sales Slump

Shares of German sports car maker Porsche (POAHY) zoomed higher despite reporting a 28% decline in 2024 China sales on Monday, with its Fiscal Q4 deliveries actually beating expectations. 

Shrugging off ongoing weakness in the world’s largest car market, shares rallied by over 2% with Barclays analysts arguing the latest quarterly results underlined a solid performance for the company, albeit against low expectations. 

Porsche, majority-owned by Volkswagen (VWAGY), sold 56,887 vehicles in 2024 in China, down from 79,283 in 2023, as consumers opted for more domestic brands such as Xpeng (XPEV), Geely (GELYF) and BYD (BYDDY). 

As a result, global sales were down 3% at 310,718 vehicles, offsetting an 11% rise at home in Germany. 

It comes after a tough year for parent company VW in the key EV market. The VW brand delivered 383,100 all-electric vehicles in 2024, a decline of 2.8%.  

In total, VW sales declined by 1.4% to around 4.8 million vehicles, with China sales for the parent brand down 8.3%. 

Martin Sander, Volkswagen Board Member for Sales, Marketing and After Sales, said, “Around the globe, 2024 was a difficult year with sluggish economic activity, political challenges and intense competition – particularly in China.”

Porsche Macan Hailed for Driving Growth

Nevertheless, Porsche’s Macan SUV delivered better-than-expected numbers in the Fiscal fourth quarter, with its electric model in particular driving higher volumes. 

Led by the Macan’s roughly 28,000 sales, POAHY said in total some 84,692 units were delivered for the quarter, beating the market expectations of 77,969 units. However, Barclays analysts sounded a note of caution that this rate of sales growth may not last.

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