Porsche Building Momentum In Key Markets
German premium auto manufacturer Porsche registered global sales growth of 22.8% year-on-year (y-o-y) in December, to 14,855 units. Over the full year, the company has a seen sales increase of 14.9% y-o-y, to 162,145 units. As the table below shows, there has been stark variation in the pattern of sales growth, with the company reporting sharp increases in many emerging markets, in line with BMI's core view. We expect the company to register strong sales growth in 2014 and for these regional trends to continue.
Recently launched models have helped drive global sales for the company. Porsche is to release several new or updated models in 2014, including one in the popular SUV compact-crossover segment, and this should help drive increases in registrations over the year. Furthermore, the firm is increasingly investing in the sales and after-sales segments across key markets, such as China and the US, which should also serve to drive increases in sales volumes.
Porsche's sales in China increased 19.9% y-o-y over the year, to 37,425 units. This constitutes some 23.1% of the company's sales during this period. - BMI maintains an optimistic view on luxury vehicle sales in the country, and we believe they will continue to outperform the broader market ( see 'Positive Sales Momentum To Spill Into Early 2014', December 10 2013). In 2014, we expect to see growth of 10.2% in total Chinese passenger car sales as consumer sentiment continues to improve- this strong growth should help buoy Porsche's sales in this increasingly important market.
|Europe Less Dominant|
|Porsche Regional Sales 2013, %|