Porsche Automobil Holding SE is feeling the pressure.

On March 11th, the long-awaited facelift of Taycan has finally arrived, with plans to introduce 7 new models in China for pre-sale in mid-April. Porsche Automobil Holding SE hopes to once again demonstrate its technological superiority through this upgrade.

However, the high-end market in China has changed significantly. With domestic million-dollar luxury cars like BYD U9, Aiways U5 SSR, and ZEEKR 001FR entering the scene, consumers now have a wide range of choices. Will Chinese consumers continue to celebrate and pay for Porsche Automobil Holding SE?

Porsche Automobil Holding SE has staged a "muscle show" with the new Taycan, known as the "most beautiful Porsche Automobil Holding SE" among many car enthusiasts. The new Taycan focuses less on exterior design and intelligence, with more emphasis on its traditional strengths in power and handling.

The highlight is the Taycan Turbo GT model with "over a thousand horsepower," showcasing super power output, active suspension system, upgraded 800V architecture, increased battery energy density, and ultimate weight reduction in the body.

With its exceptional performance, the car can reach a top speed of 305km/h, accelerate from 0 to 100km/h in just 2.2 seconds, and set a track record of 1 minute 27.87 seconds, breaking the Model S Plaid's record and reclaiming the title of the most powerful pure electric four-door coupe.

Porsche Automobil Holding SE is once again playing its high-performance card, attempting to make a comeback in the luxury electric vehicle market.

However, the once stable and established Chinese luxury car market is being disrupted by the new energy wave. The Taycan, which pioneered Porsche Automobil Holding SE's foray into pure electric vehicles, has seen a declining trend in China since its launch, with deliveries gradually decreasing from around 7,300 units in 2021. The delivery volume dropped to about 4,200 units last year.

Under the impact of domestic luxury cars, which have been the top contributor to Porsche Automobil Holding SE's sales for 8 consecutive years, helping it open the door to IPO in the Chinese market, the "favoritism" towards it is slowly fading away.

From the days when "even with a markup, it was hard to buy" to "difficult to sell even with a discount," the myth of Porsche Automobil Holding SE's high residual value rate has also collapsed. It's not uncommon to see Taycan at 22% off and Macan at 20% off, even previously resilient models like Panamera and 911 have seen discounts of up to 15%.

Throughout last year, Porsche Automobil Holding SE delivered 79,000 units in China, a 15% decrease compared to the previous year, becoming the only market where it declined.

Investors are voting with their feet as well, with Porsche Automobil Holding SE's stock price experiencing a significant pullback, dropping from a high of 118.9 euros in May last year to a low of 73.8 euros at the end of January this year. With a market value of just over 40 billion euros now, it's a far cry from the peak of over 54 billion euros.

Before the IPO, Porsche Automobil Holding SE attracted investors with a long-term sales return rate of over 20%. However, with the "decline" in the Chinese market, there are doubts about whether Porsche Automobil Holding SE can fulfill this promise.

During the financial report communication meeting on March 12th, Porsche Automobil Holding SE CEO Obram explained the decline in sales in the Chinese market was due to adjusting product supply in China to meet global market demands. He believes that "the increase in sales in other global markets can compensate for the decline in the Chinese market."

To investors, this seems like skirting the issue. To reassure the market, Porsche Automobil Holding SE's deputy director, Meisge, pointed out that the decline in the Chinese market may end around 2025, and growth potential remains.

Obram stated, "In 2024, the expectations for the Chinese market are more about quality than quantity." He revealed that this year will be a big year for Porsche Automobil Holding SE, with at least four new products set to be launched.

Apart from the newly released Taycan and all-electric Macan, the third-generation Panamera, second-generation Macan, and a hybrid version of the 911 will also debut. By 2025, Porsche Automobil Holding SE will introduce electric versions of the 718 and Cayenne, as well as a pure electric SUV positioned higher than the Cayenne shortly after.

Obram is confident that the upcoming product lineup will match the pace of transformation in the Chinese market. A positive sign is that after four weeks on the market, orders for the all-electric Macan have exceeded 10,000 units. Porsche Automobil Holding SE's venture capital arm is teaming up with China International Capital Corporation to establish a RMB fund, aiming to make early investments in the electrification supply chain. Maier said that China has become an important research and development hub for Porsche Automobil Holding SE's electrification, where they have gained a lot of inspiration.

Perhaps Porsche Automobil Holding SE has finally realized that the good old days of "easy wins" in China are gone, and the era of "innovate or die" competition has begun.

In any case, for Porsche Automobil Holding SE's flagship models to win back Chinese consumers, they must strip away the brand's aura of belief, set aside past arrogance, focus more on understanding the real needs of high-end users, and start competing with domestic brands with strong product offerings.

Perhaps only in this way can Porsche Automobil Holding SE hope to maintain its leading position in the luxury car market in China. Because behind it, a group of new forces seeking breakthroughs are watching closely.