Porsche 2026 H1: Deliveries Down 16.5%, Profit Up 33.9%, Launches Strategic Streamlining and Layoffs

On July 29, Porsche published its first-half 2026 financial report. During the reporting period, Porsche delivered approximately 122,300 vehicles globally, down 16.5% year-on-year; new energy vehicle deliveries were about 23,700, down 30.8%, and pure electric vehicles accounted for 19.4% of the automotive business. Sales revenue fell from 18.157 billion euros in the same period of 2025 to 17.229 billion euros, a decline of 5.11%; operating profit rose from 1.007 billion euros to 1.348 billion euros, an increase of 33.9%; the sales return margin was 7.8%, up from 5.5% in the same period of 2025. Among this, the automotive business operating profit was about 1.2 billion euros, the EBITDA margin was 18.3%, and the average selling price per vehicle continued to improve.

In the first half of 2026, Porsche delivered about 14,500 vehicles in China, down 31.93% year-on-year. China's contribution fell from 15% to 12%. Porsche said that the overall environment in the Chinese market is under pressure, with intense competition in the luxury car segment. The company adheres to the business strategy of "value over volume", has no local production capacity constraints in China, and can flexibly adjust European production capacity and plans.

Porsche disclosed its "2035 Strategy", which focuses on four directions: controlling overall costs, focusing on the core product portfolio, improving operational efficiency, and rationalizing capital expenditure. Specific measures include streamlining the product portfolio, concentrating on the core sports car business, cutting inefficient non-core segments; improving operational efficiency through a lightweight organizational structure; reducing overall operating costs to lower the breakeven point; and planning capital investment rationally while strictly controlling ineffective spending.

On July 27, Porsche announced that it would cut another 5,000 jobs in Germany by 2035, involving production plants and R&D centers in the Stuttgart region. At the same time, the company will take measures such as postponing salary increases, reducing bonuses, and further linking employee bonuses to operational performance. Previously, Porsche had announced a reduction of about 1,900 positions in the Stuttgart region by 2029, and about 2,000 employees with fixed-term contracts would not have their contracts renewed upon expiry. This brings the total number of job cuts in Germany to about 8,900.

In May 2026, Porsche adjusted the structure of its executive board, reducing the number of functional departments from eight to seven, eliminating the vehicle IT department, and announcing the streamlining of three subsidiaries. On June 30, Porsche China said that the Porsche Centers in Jining (Shandong), Huai'an (Jiangsu), and Xingning (Nanning, Guangxi) would terminate dealership operations, and the Wuhu (Anhui) Porsche Center would terminate sales operations on July 31, though after-sales services would continue. These adjustments are part of a plan to streamline the dealer network. Porsche China said it will deepen the "quality over quantity" strategy, further integrate the Chinese dealer network, and cooperate with partners to ensure continuity and high quality of customer service.