Dynamic global economy
The global economy continued to record robust growth during the year under review, albeit at a slightly reduced pace. Global gross domestic product (GDP) increased by 3.2 per cent in 2018 (2017: +3.3 per cent). Economic momentum in the advanced economies of the world and in the emerging markets was on a par with the previous year. With interest rates remaining comparatively low and higher commodity prices overall compared with 2017, consumer prices also continued to rise across the world. Increasing trade distortions at an international level and geopolitical tensions generated much higher levels of uncertainty.
In Western Europe, the solid growth in GDP lost some momentum over the course of the year, with an increase for the year as a whole of 1.8 per cent (2017: +2.3 per cent). The ongoing Brexit negotiations also created a mood of uncertainty as the future shape of the relationship between the UK and the European Union remained unclear. Unemployment within the eurozone continued to fall, averaging 8.1 per cent (2017: 9.0 per cent). GDP growth in Germany remained robust in 2018, supported by the good situation on the labour market. It was, however, less dynamic than in 2017, at 1.5 per cent (2017:+2.5 per cent). The mood in the corporate sector, along with consumer confidence, deteriorated over the course of the year.
Growth in the US economy rose to 2.9 per cent (2017: +2.2 per cent), buoyed primarily by domestic consumer demand. The stable situation on the labour market and inflation forecasts prompted the Federal Reserve to raise key interest rates in a series of hikes. The US dollar gained in strength against the euro during 2018. Meanwhile, the Brazilian economy recorded slight growth again, expanding by 1.4 per cent (2017: +1.1 per cent). However, the situation in South America’s largest economy remained tense not least due to political uncertainty.
The Chinese economy grew by 6.6 per cent in 2018, and therefore not quite as strongly as in the previous year (+6.9 per cent). China’s trade dispute with the USA resulted in the Chinese government expanding its programme of state support measures. India’s economy continued its positive trend, with GDP up 7.2 per cent (2017: +6.7 per cent).
For the first time following eight consecutive years of growth, the global automobile market experienced a dip in sales in 2018. Globally, 82.8 million units were sold during the reporting year, 1.2 per cent down on 2017 levels. The fall in sales can be attributed in particular to weaker development in the Asia-Pacific region and in Western Europe in the fourth quarter.
With 14.2 million new vehicle registrations, sales on the Western European market were down 0.7 per cent on the high level recorded in 2017. The healthy state of the economic environment as a whole, positive consumer sentiment and low interest rates combined to generate a slight increase during the first half of 2018. The introduction of the Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP) on 1 September 2018 resulted in lower sales, and significant falls in some cases, by the end of December.
New registration figures varied from one major market to another. Sales in Germany, at 3.4 million units, almost matched the previous year’s high level (minus 0.2 per cent). Contributory factors included the good overall economic situation in Germany, as well as price discounts in the form of switching and scrap bonuses for older diesel models and an environmental bonus for electric vehicles (both entirely electric and plug-in hybrid models). The switch to the WLTP and resulting impact on the availability of some models subsequently hit the pace of growth.
Spain (+7.0 per cent) and France (+3.0 per cent) continued to post above-average increases, as both countries benefited from the healthy state of their economies. In Italy, meanwhile, falling demand from both private and commercial customers impacted on market development (minus 3.1 per cent). On the UK car market, the negative trend of the previous year was maintained (minus 6.8 per cent), in part due to the uncertainty of Brexit. The proportion of diesel vehicles (cars) in Western Europe fell during the year under review, reaching 36.4 per cent compared with 44.4 per cent in 2017.
Sales of passenger cars and light commercial vehicles (up to 6.35 tonnes) were, at 20.7 million vehicles, slightly lower (down 0.6 per cent) than the high level previously recorded in the North America region in the 2018 financial year. Demand on the US-American market amounted to 17.3 million units, which is the same level as 2017 (up 0.2 per cent). The good employment situation and the increase in purchasing power among consumers largely compensated for the increase in financing costs due to higher interest rates. The shift in demand from classic passenger cars (down 13.1 per cent) to light commercial vehicles, such as SUVs and pick-up trucks (up 8.0 per cent), was once again evident in 2018.
The recovery on the South American markets continued in the reporting year – having started at a low level – with a 6.2 per cent increase in demand for passenger cars and light commercial vehicles, thereby reaching 4.5 million units. The major growth driver was the Brazilian automotive market, which stepped up the high growth rates recorded the year before by exhibiting a 13.8 per cent increase.
Following many years of uninterrupted expansion, the market volume in the Asia-Pacific region declined by 2.3 per cent to 36.1 million units in the 2018 financial year. The main reason for this was the weakness of the Chinese passenger car market (down 4.6 per cent). The trade conflict between China and the USA was one factor that had a negative impact on business and consumer confidence in the reporting year, and in the second half of the year in particular, this resulted in a significant decrease in demand. The Indian market, in contrast, was able to continue its growth trajectory, with an increase in passenger car sales of 4.8 per cent.
2018: New record set for deliveries
Despite major challenges such as the switch to the new WLTP testing cycle and the petrol engine particle filter, as well as the move away from diesel in Europe, and despite the rise in volatility globally, 2018 was a very successful year for Porsche. The company’s attractive product range and consistent customer focus were key factors in the renewed rise in global deliveries.
Porsche delivered 256,255 new vehicles to customers in 2018, more than in any previous financial year, and an increase of four per cent on the previous record set in 2017. In terms of models, the Panamera recorded the biggest percentage increase, with sales up by 38 per cent to 38,443 units. The 911 also performed well, recording a double-digit increase on the back of its continued appeal. Despite the generation change, the number of 911 models delivered worldwide was up ten per cent to 35,573 units.
As in the previous year, the Macan and Cayenne SUVs were once again Porsche’s most successful products in 2018, despite the Macan model change. This success underscores the sports car manufacturer’s strong positioning in this segment too. Worldwide sales of the Macan totalled 86,031 vehicles, consolidating the SUV’s position as the number-one Porsche model. Sales of the Cayenne totalled 71,458, marking a twelve per cent increase compared with 2017.
The proportion of hybrid models also increased further during the reporting year. The sporty E-Hybrid Panamera models proved particularly popular among our European customers, accounting for 67 per cent of all Panamera deliveries in Europe. At a global level, the Panamera E-Hybrid now accounts for 27 per cent of all Panamera sales, a rise of ten percentage points.
For the third year in succession, China maintained its position as the strongest individual market for Porsche in terms of volume. Year-on-year growth in China was twelve per cent, with sales rising to 80,108 units.
USA: Nine consecutive years of growth
Porsche delivered 57,202 vehicles to customers in the United States in the reporting year – a year-on-year increase of three per cent. This is the ninth year in succession that Porsche has beaten its previous year’s record. The Macan once again claimed the top spot among Porsche’s models on the US market, with 23,504 models sold, ten per cent more than in 2017. Sales of the Panamera also grew again. Two years on from its market launch, 8,042 units of the new model generation were sold during 2018. Supported by strong demand for GT models, the 911 Carrera recorded growth of around eight per cent in the USA, with 9,647 units sold. This makes the USA the world’s strongest market for the 911. Demand for the Cayenne S and Cayenne Turbo, offered for the first time on the US market towards the end of the year, proved particularly strong. A total of 10,733 Cayennes were delivered to customers in 2018. Alongside new vehicles, sales of pre-owned cars also reached an all-time high. With 23,046 units delivered and an increase of 21 per cent, pre-owned vehicles were also a popular choice among US customers.
Canada: Renewed substantial increase
Porsche recorded another marked increase in its sales in Canada in 2018. The high level of professionalism on offer from Porsche Centres and Canadian customers’ enthusiasm for the brand contributed to a new sales record on what is the sports car manufacturer’s sixth largest market. The highest-selling model was the Macan, with 3,960 units sold, followed by the Cayenne, at 2,107 units. With a year-on-year increase of 40 per cent, demand for the Panamera grew the most strongly, with 783 units sold in Canada during the reporting year. Meanwhile, the 718 Boxster and 718 Cayman also enjoyed greater popularity in Canada, with sales totalling 656 units and thus rising by eight per cent compared with 2017. In total, Porsche sold 8,904 new vehicles on the Canadian market in 2018. This represents a year-on-year increase of eight per cent. The number of pre-owned models, sold after being checked by Porsche, rose by almost 20 per cent, with 2,559 pre-owned cars finding their way to Canadian customers.
South America: Stability in a volatile region
Porsche was able to maintain its sales at a stable level in Central and South America (excluding Brazil) despite the volatile environment. Sales in this region totalled 2,911 vehicles in 2018. The highest growth was recorded by the Panamera, with an increase of 36 per cent to 262 vehicles. The Cayenne was Porsche’s most successful model, up by 25 per cent to 1,150 units. Sales of the 911 also grew, with 528 vehicles sold, four per cent more than in the previous year in Central and South America. The Regional Office based in Miami looks after 22 markets in total and 45 points of sale. Mexico again accounted for the largest proportion of sales, with 1,486 units sold. This market thus made a key contribution to stable sales figures for Latin America.
Brazil: Growth nudging 30 per cent
The Porsche subsidiary established in Brazil in 2015 recorded particularly strong growth in 2018. Deliveries on the South American market grew by 28 per cent on a year-on-year basis, to 1,444 units. The Panamera recorded a disproportionately high level of growth, with 185 vehicles being delivered, an increase of 157 per cent compared with 2017. Other models also performed well. Sales of the 718 series totalled 275 vehicles, 80 per cent higher than the number of Porsche cars delivered in Brazil during the previous year. Demand for the Cayenne was up 18 per cent to 347 units. The 911 Carrera also fared well with Brazilian customers, with sales of 211 units. This equates to an increase of seven per cent. With a view to further strengthening the Porsche brand in Brazil, the company opened its tenth Porsche Centre in 2018.
Europe region: Slight decline, Cayenne strong
The transition to the new WLTP cycle was one of the biggest challenges for the Europe region in 2018. An additional factor was the end of diesel sales from February 2018 onwards. There was a corresponding drop in the number of new vehicle sales compared with the previous year, down by four per cent to 50,450 (excluding Germany). The Cayenne performed very strongly, with Europe-wide sales in 2018 of 13,016, an increase of 34 per cent. The Macan continued to be the brand’s best seller in Europe, with 15,632 units sold. Sales in the 911 sports car were up by eleven per cent to 9,090 vehicles. The mid-engine 718 Boxster and 718 Cayman accounted for 5,395 units. Porsche’s plug-in hybrid vehicles again proved very popular. In the case of the Panamera, hybrids accounted for 67 per cent of sales in Europe. Accounting for a share of 42 per cent, the Sport Turismo was another popular choice among European Panamera drivers.
Germany: Holding our own on our home market
Porsche faced numerous challenges in Germany during 2018, particularly during the second half of the financial year. These included the move to the new WLTP cycle and the petrol engine particle filter, as well as the end of diesel sales. Nevertheless, the Stuttgart-based sports car manufacturer was able to hold its own on its home market, delivering 27,541 new vehicles. This equates to a slight year-on-year dip of three per cent. Given the change of generation, the sustained high level of demand for the 911 Carrera was particularly significant in 2018. With double-digit growth of 23 per cent and sales of 9,309 units, this iconic sports car performed exceptionally strongly in what tended to be a weak lifecycle year in Germany, and was the most popular Porsche model there. In second place was the Macan, with 6,430 cars sold. Cayenne sales grew slightly, up three per cent to 5,133 delivered vehicles.
UK: Strong growth in 911 sales
Porsche enjoyed stable demand in the UK during 2018. However, the move to WLTP and the petrol engine particle filter also affected the availability of certain models on the British market. The company also stopped selling diesel vehicles during the reporting year, with a corresponding drop in sales. Overall, Porsche sold 12,521 vehicles to customers in the UK during 2018. The 911 Carrera was the model with the strongest growth. Sales totalled 2,403 units, seven per cent more than in 2017. The most successful car remained the Macan, with 4,239 units sold, while the 718 models continued to be popular, with deliveries totalling 2,642. This highlights the extent of the British love affair with mid-engine sports cars. There were 2,227 Cayennes sold in the UK during 2018.
France: Panamera hybrid enjoys success
Sales in France were down 16 per cent in 2018 due to the challenges faced right across Europe. Porsche France delivered 4,908 vehicles to its customers. Despite declining numbers, the Macan remained the most popular Porsche model, accounting for 1,508 units. The Cayenne was in third place with 1,009 units sold, an increase of eleven per cent on 2017. The 911 also recorded a slight increase, with 1,122 units sold. Porsche actually recorded double-digit growth in Panamera sales: French customers took delivery of 802 vehicles, 14 per cent more than in 2017. The proportion of E-Hybrid Panamera models is gratifyingly high, with 81 per cent of French Panamera drivers opting for the plug-in hybrid model.
Italy: Macan remains the number-one choice
The already mentioned factors specific to Europe in 2018 also resulted in falling sales in Italy, with a dip of five per cent to 5,230 units. Bucking this trend was the Cayenne, which continued to grow in popularity. Deliveries totalled 1,047 units, a 23 per cent increase on the previous year. Porsche also experienced good demand for its 911 Carrera, delivering 977 vehicles to Italian customers. This equates to an increase of four per cent. Italy’s most popular model remains the Macan, with 2,082 units sold. The Panamera was purchased by 579 Italian customers during the year under review, a rise of five per cent compared with 2017. The hybrid models and Sport Turismo fared particularly well, with 67 per cent of Panamera customers opting for an E-Hybrid, and the Sport Turismo accounting for a good half of sales.
Spain/Portugal: Cayenne growing in popularity
Despite slight growth, the economies of Spain and Portugal have not yet made a full recovery, and government debt remained high in both countries in 2018. Overall, 2,965 Porsche vehicles were delivered on the Iberian market, down three per cent on the previous year. The most successful model was the Macan, with 1,203 units. Demand for the Cayenne developed very positively, and it was the second-favourite model on both markets. Porsche sold 644 Cayennes in Spain and Portugal in 2018, 20 per cent more than in 2017. Customers also took delivery of 574 Panameras, while sales of the 911 Carrera totalled 334. A further 210 customers purchased 718 models.
Switzerland: GT and Turbo 911s enjoy success
In Switzerland, Porsche delivered 3,350 new vehicles to customers, which was slightly down from the previous year. As in 2017, the most popular model remained the Macan, accounting for 1,068 units. There were 962 of the iconic 911 sports car sold in Switzerland during the reporting year, an increase of ten per cent on 2017. The GT and Turbo models were particularly sought-after, making up 52 per cent of deliveries. Cayenne sales totalled 675 vehicles, 37 per cent more than in 2017. Sales of the Panamera totalled 459, 59 per cent of which were the plug-in hybrid model. The 718 Boxster and Cayman mid-engine sports cars accounted for 186 sales to Swiss customers, most of whom opted for one of the GTS models.
Austria: Panamera E-Hybrid performs well
Porsche once again grew its sales on the Austrian market, with a rise of seven per cent to 1,399 vehicles. The most popular car was the 911 Carrera, with sales of 473 units, a year-on-year increase of 58 per cent. Demand for the Cayenne also grew strongly, with sales to Austrian customers totalling 294. Panamera sales totalled 288 vehicles, up 22 per cent on 2017 levels. Accounting for 90 per cent of deliveries, the E-Hybrid was more popular in Austrian than in any other individual European market.
Central and Eastern Europe: One per cent growth
In Central and Eastern Europe, a heterogeneous market affected by political tension, Porsche recorded sales of 6,259 vehicles during the reporting year, a rise of one per cent compared with 2017. The 911 and Cayenne accounted for the slight growth. The Cayenne was the number-one choice in the region, with 2,145 units sold. This is an increase of 34 per cent compared with the year before. The 911 Carrera recorded growth of 25 per cent, with 708 customers purchasing this model. The growth in mid-engine sports cars sales in Central and Eastern Europe also reached double figures, with 405 sales of the 718 Boxster and 718 Cayman, a 16 per cent rise compared with 2017. With 1,919 deliveries, the Macan was the second most popular choice among customers in this region.
Russia: Cayenne and 911 record double-digit growth
In Russia, Porsche recorded double-digit growth and a very successful 2018 for the 911 and Cayenne. The company delivered 5,118 vehicles to Russian customers, twelve per cent more than in 2017. The Cayenne and 911 proved particularly popular, with deliveries of the SUV model up 67 per cent to 2,848 units. The Cayenne was Porsche’s best-selling brand on the Russian market in 2018. In terms of the 911, 204 models were sold, five per cent more than in 2017. The Macan also remained a popular choice, occupying second place in the deliveries rankings with 1,451 units. Meanwhile, 506 Porsche customers opted for a Panamera, while 109 customers purchased a 718 model.
Northern Europe: Market continues to grow
The positive development of earlier years continued in Scandinavia and the Benelux countries. Deliveries grew by an average of three per cent to total 8,700 vehicles in 2018. The Cayenne was a strong driver of growth, accounting for 2,127 cars, an increase of 63 per cent. This made it Porsche’s top seller in this region for 2018. Significant gains were also made in terms of the 911, with 25 per cent growth to 1,907 units. Sales of the Macan totalled 1,947 vehicles, while there was a one per cent increase in Panamera deliveries, with 2,017 units sold. E-Hybrid vehicles accounted for a high 84 per cent of all Panameras sold.
China: Still number one
With total deliveries of 80,108, China remained Porsche’s strongest individual market in terms of volume, complete with double-digit growth. In 2018, Porsche supplied its Chinese customers with twelve per cent more units than in 2017. The Cayenne accounted for the largest proportion of those sales, with 31,456 units delivered to customers in China and Hong Kong, marking a year-on-year increase of 19 per cent. It was followed by the Macan, with 27,386 units sold. The highest level of growth was recorded for the Panamera, with 13,964 deliveries, a climb of 123 per cent compared with 2017. Around one in ten customers opted for hybrid models, which account for eleven per cent of the market in China. The 718 Boxster and 718 Cayman also remained popular, with sales of 5,882 units. They therefore accounted for around 80 per cent of their segment. The further expansion of Porsche’s dealer network in China helped to boost growth: a further 15 Porsche Centres opened their doors in the 2018 financial year, bringing the total number of dealers to 114.
Japan: Cayenne drives growth
The Porsche range continued to be appreciated by Japanese customers in 2018. The sports car manufacturer exceeded the 7,000 mark for delivered vehicles, growing its sales by three per cent compared with 2017. The Cayenne recorded the strongest growth, up by 85 per cent on 2017 with 1,192 vehicles sold. Sales of the Panamera were also up on 2017, rising by 28 per cent to 1,110 units. The two-door 911 accounted for 1,405 units in Japan, while the 718 Boxster and 718 Cayman together accounted for 1,266. The Macan remained out in front, with 2,047 units being sold on the Japanese market.
South Korea: A gain of almost 70 per cent
The young Porsche subsidiary in South Korea significantly improved on its 2017 result during what was its third financial year. The Panamera was a particularly important factor in the 69 per cent growth, with a huge rise in deliveries to 1,968 vehicles. The top-selling model thereby even outperformed 2017’s number one, the Macan, which also recorded significant growth with 1,118 deliveries. The 718 Boxster and 718 Cayman were also increasingly in demand among South Korean customers during the reporting year. Sales of 918 units, which is a rise of 18 per cent, clearly demonstrate the growing enthusiasm for Porsche mid-engine sports cars.
Asia-Pacific: Three models record double-digit growth
From its regional head office in Singapore, Porsche serves the Asia-Pacific region, where sales grew once again in 2018. Six per cent growth was recorded, with 2,147 vehicles sold. The Cayenne, Panamera and 911 all recorded double-digit increases. There were 422 Cayennes sold, 86 per cent more than in 2017. Delivers of the Porsche 911 rose by 51 per cent to 304 units. Customers in the region purchased 473 Panamera vehicles, a big increase of 40 per cent on 2017 levels. Similarly, demand for the 718 Boxster and 718 Cayman was also high, with 357 customers opting for one of these two mid-engine models. The region’s top-selling model remains the Macan, with 591 units sold.
Middle East, Africa and India: Growing demand for the Cayenne
Porsche delivered 6,438 vehicles to the Middle East and Africa region during 2018. Despite the challenging political context throughout the Middle East, Porsche achieved slight growth of one per cent. The Cayenne fared particularly well, with the delivery of 2,936 units, 38 per cent up on 2017. It remains the most popular model on this market. Sales of the 911 also grew in double digits, with 1,094 units sold. There were 1,306 deliveries of the Macan.
Australia/New Zealand: A strong year for the Porsche 911
Even in the year of generation change, Australian customers’ love for the 911 was undiminished. Deliveries of the iconic sports car were up 28 per cent to 612 units. Sales of the Panamera also rose, with 138 new deliveries, an increase of eight per cent on 2017. Around one in four Panamera customers opted for the Sport Turismo, with 30 per cent choosing a hybrid model. Overall, Porsche delivered 4,294 vehicles to the Australian market during the reporting year.
Panamera 4 E-Hybrid: Fuel consumption combined 2.7 – 2.6 l/100 km; CO2 emissions 62 – 60 g/km; electricity consumption (combined) 16.1 – 16.0 kWh/100 km 2)
Panamera 4 E-Hybrid Sport Turismo: Fuel consumption combined 2.9 – 2.8 l/100 km; CO2 emissions 66 – 64 g/km; electricity consumption (combined) 16.2 – 16.1 kWh/100 km 2)
911 Turbo: Fuel consumption combined 9,1 l/100 km; CO2 emissions 212 g/km
718 Boxster: Fuel consumption combined 8.1 l/100 km; CO2 emissions 186 g/km
718 Boxster GTS: Fuel consumption combined 9.2 l/100 km; CO2 emissions 210 g/km
718 Cayman: Fuel consumption combined 8.1 l/100 km; CO2 emissions 186 g/km
718 Cayman GTS: Fuel consumption combined 9.2 l/100 km; CO2 emissions 210 g/km