Porsche just announced something highly unusual: Record full-year revenues from selling Porsches. No more option plays with attached sheet metal bending operation. Revenues rose 17.9 percent to a record €7.79b ($10.5b), and Porsche said it expects to see the positive trend continue in the current business year, reports Reuters.
And where do all these sales come from? Definitely not from Porsche’s core markets, the U.S.A. and Germany.
Porscher sales in Europe and North America inched a bit higher, but Porsche said they sold 3.5 percent fewer cars in its German home market in the 12 months through the end of July.
Nevertheless, Porsche’s worldwide sales grew 8.8 percent. Who buys all these slot cars? Who else than the Chinese. Sales in China almost doubled to 11,724 units.
If you do the math, that’s 1.6 billion (US) in revenue for 5862 cars…..or about $273,000 per car. Now I get why I can’t afford a Porsche. Something else has to be adding to the numbers.
Were are you getting those numbers?
I see what 1996MEdition is doing: $10.5 billion/1.179 = $8.9 billion. This is a revenue increase of $1.6 billion from the previous year. Sales in China doubled, so 11,724/2 = 5,862 additional sales this year. Then $1.6 billion/5,862 = $272,944 per additional unit sold in China. (Actually, sales in China increased 47.5%, which would really mean about 3,776 additional units sold.)
But that isn’t quite right, since some portion of Porsche’s additional sales obviously came from outside China. The total revenue increase probably also has to do with increased sales prices for all units, not just the prices of additional units sold compared to the previous year.
Worldwide, sales rose 8.8% from 75,238 to 81,850. Since total revenue was $10.5 billion, this amounts to $128,283 per unit sold. In the previous year, it was $8.9 billion/75,238 = $118,291 per unit sold. So, Porsche saw a revenue increase of $9,992 on average per unit sold.
I don’t know how this compares to actual sales prices per unit, though (i.e., what each consumer paid, on average, for his new Porsche).
China adds a 100 – 200% tax on luxury imported cars. That’s why VW, Audi and others set up local manufacturing in China.
What I don’t understand is where do Chinese Porsche owners drive their cars? From my travels to many cities in China, it’s hard to get over 50 MPH for more than three minutes. A large Mercedes, BMW or Audi sedan with a driver makes more sense to me. But then, there was a yellow Ferrari 430 parked outside my apt building in Beijing every night.
Twotone
What I don’t understand is where do Chinese Porsche owners drive their cars?
Is call conspicuous consumption, just needed to be seen in one and thats all.
From my travels to many cities in China, it’s hard to get over 50 MPH for more than three minutes.
is becoming every where very soon. We have too many cars and not enuf roads.
A large Mercedes, BMW or Audi sedan with a driver makes more sense to me. But then, there was a yellow Ferrari 430 parked outside my apt building in Beijing every night.
U forgotten many of the rich folks have little Princes & Princess and they wouldnt wanna be caught dead in a pompously stuffy 30 ft long limo.
One friend told me one of her school mate in old Blighty usually gambles 1000 quids a night at the casino table. His daddy supposed to own some oel field in Middle Kingdom. He cant be hurting too badly except feeling a bit bored though & empty inside.
All about presence. You need a smart whip to drive down to the Starbucks for your frappuchino.
I really love Porsche. Oh my gosh! It really takes my breath away just by looking at it. It really worth millions. But still, having a web review about it matters.