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A surge in Porsche deliveries to North America by more than a third was not enough to offset significant declines in other major markets in the first quarter, resulting in an 8% decrease in sales for the German luxury car manufacturer.
The company, known for iconic models like the 911 as well as newer electric models like the Macan, reported a 37% increase in deliveries to North American customers in the first quarter compared to the previous year.
This increase was partly due to lower figures from the previous year when many cars were held up at US ports due to banned Chinese components. Additionally, there was a rise in new orders from US customers, who were more willing to forgo custom features that typically lead to delays in delivery.
However, the growth in North America was overshadowed by sharp declines in Germany and China, with deliveries falling by 34% and 42% respectively, resulting in a global delivery total of 71,470 cars for the first quarter.
The implementation of President Donald Trump’s 25% tariffs on imported cars has added to the challenges faced by global automotive companies, especially in China and Europe, where consumer spending is slowing down and there is increased competition from Chinese electric vehicle startups.
Meanwhile, Mercedes-Benz reported a 1% increase in US sales in the first quarter, contrasting with 10% drops in Germany and China. This demonstrates the varying market conditions in different regions for luxury car manufacturers.
With the significant decline in sales in China, North America has become Porsche’s largest market, highlighting the impact of tariffs on the company’s profitability.
Last month, Porsche revised its midterm profit margin target from 19% to 15-17%, citing potential impacts of US tariffs. The company remains cautious about further revisions to its guidance due to the uncertain trade environment.