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File photo used for representational purpose.
File photo used for representational purpose.

Porsche snubs 'Made in China' for now, backs value, image of 'Made in Germany'

  • Porsche CEO says it doesn't make any sense to manufacture in China for China currently.

  • China is a key market for Porsche. The car maker sold more cars here in 2020 than it had in all of Europe.

At a time when car makers are looking at their manufacturing hubs in China to propel dreams of world dominance, Porsche is in no mood to either shift its manufacturing or open a supplementary plant in the world's largest car market. The reason may be quite obvious - quality.

(Also read: Porsche expects most of its sales to be electric by the end of this decade)

Porsche CEO Oliver Blume recently said that it still makes a whole lot of sense to manufacture cars from the company's base in Germany for the Chinese market that to locally manufacture products. "It is a quality and a premium argument still to produce from Europe for China, he told Financial Times, adding that it won't make any sense to move production to China currently.

China is a very big market for Porsche, a company that sold 272,162 vehicles around the globe in 2020. Of these, 80,892 units were sold in China alone which is more than the 80,892 units sold across Europe and far higher than the 57,294 units sold in the US. And yet, the target customer base in markets around the world may be those who prioritize quality above all else.

(Also read: Porsche to set up assembly plant in Malaysia, says report)

Traditionally, cars made in Germany have been been widely regarded to be of a superior build quality - a major selling point for German car makers.

Blume, however, does admit that there may be a time in the future when manufacturing in China could be deemed necessary but adds that it could be dependent on volumes being sold as well as regulations in individual countries.

Porsche does manufacture cars outside of Germany too with the Cayenne being made from the VW Group factory in Slovakia's Bratislava.

Nonetheless, as more and more car makers are looking at a firm footing in China, Porsche is content to keep production locations and processes as is for the time being.

  • First Published Date : 17 Feb 2021, 12:02 PM IST