Porsche's operating profits plummeted €2 billion (£1.7bn) in the first half of 2025 as the sports car maker grappled with US import tariffs, slow global electric car uptake and the collapse of China's luxury car market.
The company's latest financial results reveal that it generated €18.6bn (£16.1bn) of revenue in the first six months of the year, down €1.3bn (£1.1bn) on the same period last year, with operating profits of €1.01bn (£0.87bn) - down from €3.06bn (£11.3bn) last year.
Porsche delivered 146,000 cars over the six months, which was down only 10,000 on the same period in 2024, but it achieved a return on those sales of just 5.5% – down 65%.
The company blames a raft of "macroeconomic and geopolitical headwinds" for the decline, including a sharp fall in popularity for premium cars in the crucial Chinese market, a slower than expected transition from ICE to EV powertrains and the US's new import tariffs on EU-built cars.
Porsche said the US tariffs – reduced this week to 15% from the 27.5% imposed in April – resulted in costs of €400 million (£346m) during the first half of the year. It also noted an expense of around €200m (£173m) for its ongoing "realignment" programme and another €500m (£432m) for battery activities.
Porsche CEO Oliver Blume warned that the automotive industry faces a period of prolonged instability, and said Porsche will continue to substantially adjust its strategy to suit.
“We continue to face significant challenges around the world. And this is not a storm that will pass,” he said. “The world is changing dramatically – and, above all, differently to what was expected just a few years ago.
"Some of the strategic decisions made back then appear in a different light today. That is why we are fundamentally developing Porsche further.
“Our completely revamped product range is very well received by our customers. We expect that we will begin to see positive economic momentum again from 2026 onwards.”
Following the downturn, and taking into account the new 15% tariff on EU-built cars in the US, Porsche has adjusted its forecast for 2025 and now expects to achieve a return on sales of 5-7% for the year – a figure that includes an estimated €1.3bn (£1.1bn) in total costs relating to Porsche's strategic realignment.
The company says it will "start negotiations with employee representatives on a second package of measures" in the second half of 2025, having announced plans to cut 3900 jobs earlier this year.
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