Premium brands are benefiting from soaring demand in China, the biggest market for luxury products, as the country scrapped its zero-COVID-19 lockdown policy late last year.
Porsche AG reported a record year-over-year sales increase of 18% in the first quarter, mostly from a 21% increase in deliveries to China compared to the first quarter of 2022. The luxury brand delivered 21,365 cars in China, its largest single market.
Mercedes also saw a surge, delivering 191,000 vehicles to China in the first three months of 2023, a 3% increase over the previous year.
Worldwide, Porsche delivered 80,767 cars during the first quarter, with the automaker posting increases in every region. Customers seemed to favor the SUV models, such as the Macan and Cayenne, as well as the classic 911 sports car.
"The good start makes us confident for the rest of the year. At the same time, we remain vigilant and flexible in an environment that remains challenging," said Detlev von Platen, Porsche's executive board member for sales and marketing.