The Korea Herald

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Porsche says China growth to quicken next year after Macan

By Korea Herald

Published : Sept. 15, 2013 - 20:48

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Porsche AG’s China chief executive forecast sales growth in the country will accelerate next year, fueled by the introduction of the Macan compact SUV and a push to expand into the inner regions of the country.

“The epicenter of the world has for many reasons moved from the U.S., across Europe and now is sitting in Asia, and China is obviously the powerhouse of Asia,” Deesch Papke said during an interview Thursday in the southern city of Foshan, where Porsche is introducing its newest Panamera cars. “We’re extremely optimistic about the success of Macan.”

The Volkswagen AG unit has benefited from China’s love for sport utility vehicles ― more Cayennes are sold there than in any other country ― even though Porsche SUVs sell for triple what they cost in the U.S., with the cheapest model starting at 922,000 yuan ($150,000). The company, which expects global deliveries to reach 200,000 by as early as 2015, is counting on China demand to sustain growth and to surpass the U.S. as its biggest market by next year.

Papke, 51, said sales are on pace to increase about 20 percent this year. Growth will accelerate next year as the Macan goes on sale from the second half of 2014, he said, without specifying figures. The company plans to almost double its number of dealerships to 100 within a year or two, from 56 now, he said.

Last year, Porsche delivered 31,205 vehicles in China, up 28 percent. In the first eight months of this year, sales growth slowed to 17 percent to 21,092 cars. (Bloomberg)