On March 19, Porsche released its 2020 results. According to the financial report, in fiscal year 2020, Porsche's operating revenue reached 28.7 billion euros, sales profit was 4.2 billion euros, and the rate of return on sales was 14.6%, a small gap compared with fiscal year 2019. Meanwhile, Porsche delivered 272000 new cars worldwide in 2020, down 3 per cent from a year earlier.
In the Chinese market, Porsche delivered 89000 new cars in 2020, up 3 per cent from a year earlier and accounting for 33 per cent of Porsche's global sales. This performance also makes the Chinese market the largest single market for Porsche in the world for the sixth year in a row. In the first two months of this year, Porsche delivered 13900 new cars in China, up 54 per cent from a year earlier.
Since its establishment 20 years ago, products and channels have been expanding.
This year coincides with Porsche's entry into the Chinese mainland market for 20 years, during which time Porsche has sold 600000 vehicles in China and set a number of records. According to Yan Boyu, president and CEO of Porsche China, since Porsche established its first Porsche center in mainland China in 2001, by the end of 2020, Porsche's sales outlets in China have increased to 134, covering more than 80 cities in 29 provinces, including Hong Kong and Macao.
At the same time, Porsche's business scope in China is also expanding, from simply importing cars to providing diversified services to customers and the automotive industry as a whole, such as the launch of Porsche financial services in 2012; in 2015, Porsche established an engineering and technology research and development company in Shanghai; in 2017, Porsche Asia Pacific Motor Sports Division was established. At the beginning of this year, Porsche China Digital Business Unit officially became Porsche (Shanghai) Digital Technology Co., Ltd.
In addition to expanding the range of services, Porsche has also strengthened its product system in China. According to reports, its products have developed from the initial 911 and Boxster models to today's 6 major cars and more than 50 derivative models. Among them, the sales of Porsche 911 and Porsche 718 increased by 70% and 50% respectively in 2020, making the Chinese market the third largest market for Porsche two-door sports cars in the world. In addition, the SUV models Cayenne and Macan still sell well in the Chinese market, and next, Macan will be fully electrified, which is Porsche's second electric product.
According to Yan Boyu, the star model of Porsche in China in 2020 is Taycan, which has been very popular with Chinese users since its launch in April last year, and 63 per cent of Taycan cars are owned by new Porsche customers. In other words, the arrival of this pure electric has brought more new consumer groups to Porsche.
In the next ten years, electrification will be the main theme.
Of course, in the context of accelerated changes in the automotive industry, electrification is still the focus of Porsche's next development. Yan Boyu said that the arrival of Taycan will lead Porsche into a new era of electrification, and in order to ensure the car experience of Taycan owners in China, Porsche will continue to invest in and develop an integrated ecosystem, including charging services and after-sales.
In terms of products, in the next 10 years, Porsche will continue to optimize internal combustion engine models and develop plug-in hybrid and pure electric sports cars at the same time. It is also understood that at this stage, Porsche has launched a total of 12 hybrid and pure electric vehicles in the Chinese market, accounting for about 22% of the total number of Porsche models in China, and this proportion will continue to expand. In the global market, Porsche sells 17 per cent of its electrified models, which Porsche hopes to account for 50 per cent in 2025 and more than 80 per cent in 2030.
Like other car companies, one of Porsche's growing electrified models is to achieve carbon neutrality as soon as possible. Obom, chairman of Porsche's global executive board, said: "Sustainable development is an important part of Porsche 2030 strategy, which is closely intertwined with economy, ecology and society." Porsche hopes to achieve carbon neutrality across the value chain by 2030. Since 2021, Porsche's main production plants, including research and development centers, have achieved carbon neutrality in the production process, and the Taycan Cross Turismo, which was first launched in early March, is the first model to achieve carbon neutrality throughout the use of the vehicle, according to Obermu. Over the next 10 years, Porsche will allocate more than 1 billion euros to achieve its goal of carbon neutralization.
In-depth change in the field of digitalization
Digitization is also one of the goals Porsche strives to achieve in the process of change. In January, Porsche established Porsche (Shanghai) Digital Technology Co., Ltd. in Shanghai, which developed from Porsche's digital business unit in China, which was established in 2019.
In 2020, in the context of a full outbreak of the epidemic, Porsche began to launch a number of digital services, such as Porsche China service number, Porsche apps, Porsche lifestyle Tmall store, and related WeChat Mini Programs. Yan Boyu said that when Porsche's digital business becomes a new company independently, it will help to speed up Porsche's digitization process.
After entering the Chinese mainland market for 20 years, Porsche continues to expand its market share and brand awareness in China with the rapid development of the domestic economy. Over the past 20 years, China has also grown from a market with almost no knowledge of supercar brands to the largest car consumer in the world. Now, in the context of deep changes in the automobile industry, consumers have new expectations for supercar brands such as Porsche, which also gives Porsche the determination to keep changing. As Yan Boyu said, Porsche is not afraid of competition and challenges, and it will meet the needs of users and the market on the basis of luxury and scarcity.
