Business development

Macroeconomic and sector-specific environment

Development of global economy

In the fiscal year 2025, the global economy continued to recover at a pace similar to the prior year. In the course of this development, a slight increase in momentum was observed in the emerging markets. In the advanced economies, the development remained positive, albeit it slightly below the prior-year level. Although inflation declined in many countries, it remained higher than usual in some. Not all central banks lowered their key interest rates to the same extent due to differing framework conditions, which in some cases had a dampening effect on economic development.


Overall, geopolitical uncertainties, particularly in connection with the orientation of the US economic policy and the increase in geo-economic measures, weighed on the global economic environment.

Germany

At +0.3%, the German economy stagnated at the prior-year level in 2025 (2024: down 0.5%) after falling in each of the two prior years. Compared with 2024, the unemployment figures rose slightly on average over the year. The harmonized inflation rate in the reporting year was slightly below the level of the prior-year period.

Europe

The Western European economy recorded positive growth overall of 1.5% in the reporting year (2024: up 1.0%) and was therefore above the prior-year level. Development in individual countries in Northern and Southern Europe was mixed. Due to falling inflation rates, the European Central Bank has lowered its key interest rates in eight increments since June 2024. The economies in Central Europe recorded overall growth in 2025 that was slightly higher on average compared to the same period of the prior year, while growth in Eastern Europe was lower.

North America excl. Mexico

In the USA, economic output rose by 2.0% in the reporting year (2024: up 2.8%) with a slightly lower growth rate compared to the prior year. The central bank had lowered its key interest rates in several steps in the prior year, but interrupted this gradual easing in the reporting period due to the uncertain impact of economic policy measures taken by the US government and only resumed monetary easing in September 2025. The growth rate in Canada was down slightly on the prior year at 1.7% (2024: up 2.0%).

China incl. Hong Kong

Economic output in China was higher than the global average and at 5.0% in the reporting year was on a par with the prior year (2024: up 5.0%).

Development for the automotive markets

At the end of the fiscal year 2025, the global volume of the passenger cars market was up slightly on the prior year at 81.8 million vehicles, with most passenger car markets recording positive development. While the regions China (incl. Hong Kong) and Central and Eastern Europe grew slightly, the regions Western Europe and North America were on a par with the prior year.


In addition to fiscal policy measures, the sector-specific environment was influenced by the economic situation, which contributed to the uneven development of sales in the markets in the past fiscal year. The fiscal policy measures included tax cuts and increases, the introduction, expiry and adjustment of incentive programs and buyer’s premiums as well as import tariffs. Non-tariff trade barriers to protect the respective domestic automotive industry additionally hindered the exchange of vehicles, parts and components.

Germany

At 2.9 million units (up 1.4%), the number of new car registrations in Germany in 2025 was on a par with the prior year. New registrations of all-electric vehicles developed particularly well.

Europe without Germany

In Western Europe (without Germany), the number of new passenger car registrations in 2025 increased by 2.1% to 9.0 million vehicles, matching the prior-year level. The performance of the large individual passenger car markets in this region was mixed in 2025. Spain recorded significant growth of 13.3%. The United Kingdom recorded slight growth (up 3.5%), while the market volume in Italy (down 2.1%) and France (down 4.8%) recorded a slight decline.


In Central and Eastern Europe, the market volume of passenger cars in the fiscal year 2025 was at the prior-year level at 2.5 million vehicles (up 2.0%). The number of sales developed positively in the major markets of Central Europe.

North America excl. Mexico

In the region North America excl. Mexico, sales figures for passenger cars in the fiscal year 2025 reached prior-year levels at 18.2 million units (up 1.8%). The market volume in the USA remained at the prior-year level of 16.3 million units (up 1.8%). At 1.9 million vehicles, the volume in Canada increased slightly on the prior year (up 2.2%).

China incl. Hong Kong

In the region China incl. Hong Kong, the number of new registrations of passenger cars increased slightly by 3.9% to 24.3 million units in 2025. The development of the Chinese passenger car market was characterized, among other things, by extensive government purchase incentive programs and lower prices. A negative trend in demand was observed in the luxury segment. In addition, the luxury tax, which has been adjusted since July 2025, is having an impact on the luxury segment in the Chinese market.

Deliveries

In the fiscal year 2025, deliveries1 of the Porsche AG Group were down. Overall, the sports car manufacturer delivered 279,449 vehicles, down 10.1% on 2024.

1 The performance indicator “deliveries” reflects the number of vehicles handed over to end customers. This may take place via group companies or independent importers and dealers. In the Porsche AG Group, this differs from unit sales as a relevant driver of sales revenue. Unit sales in the Porsche AG Group are designated as those sales of new and group used vehicles of the Porsche brand, which have left the automotive segment for the first time, provided there is no legal repurchase obligation by a company in the automotive segment.

Headline

2025

1 North America excl. Mexico

2  China incl. Hong Kong

In the domestic market of Germany, deliveries of the Porsche AG Group fell by 16.4% to 29,968 vehicles. In the sales region of Europe without Germany, deliveries fell by 12.6% to 66,340 vehicles. In both regions, the decline in deliveries can be attributed to several factors. These include supply shortages of the 718 Boxster/Cayman and the Macan models with combustion engines due to European cyber security regulations. The region North America excl. Mexico remains the largest sales region. Here, the number of deliveries fell by 0.4% to 86,229 vehicles. In the region China incl. Hong Kong, the Porsche AG Group delivered 41,938 vehicles, a decrease of 26.3% compared to the prior-year period. The main reasons for this continue to be the challenging market conditions, particularly in the luxury segment, and the very intense competition in the Chinese market, especially for all-electric models.


The focus remained on value-oriented sales aimed at balancing supply and demand. In the sales region Overseas and Emerging Markets, 54,974 vehicles were handed over to customers. This is a 1.0% decrease compared to the prior-year period.


At 84,328 units and an increase of 1.9%, the Porsche Macan recorded the highest number of deliveries in the fiscal year 2025. The all-electric version accounts for 45,367 vehicles of these deliveries. In most countries outside the European Union, the Porsche AG Group continues to offer the Macan with combustion engine, of which a total of 38,961 units were delivered. The Porsche Cayenne was handed over to 80,886 customers. This 21.4% decrease is primarily due to a catch-up effect in the prior-year period. With an increase of 1.3% compared to the prior-year period, deliveries of the Porsche 911 totaled 51,583 vehicles. Deliveries of the 718 Boxster and 718 Cayman models came to 18,612 (down 21.4%). The decline is mainly due to the model series being phased out. Production was discontinued in October 2025. The Panamera was handed over to 27,701 customers (down 6.4%). In the past fiscal year 2025, a total of 16,339 Taycans were delivered to customers (down 21.6%).

Deliveries of the Porsche AG Group by model series

Units
2025
2024

911

51,583

50,941

718 Boxster/Cayman

18,583

23,670

Macan

84,328

82,795

Cayenne

80,886

102,889

Panamera

27,701

29,587

Taycan

16,339

20,836

Deliveries

279,449

310,718

The automotive BEV share, which describes the proportion of purely battery-powered electric vehicles, stood at 22.2% (2024: 12.7%). The all-electric version of the Macan has made a significant contribution to increasing the automotive BEV share. In the reporting period, the share of electrified vehicles (all-electric vehicles and plug-in hybrids) stood at 34.4% (2024: 27.0%). Further information can be found in the section on vehicle product strategy under Environment.

BEV-Anteil Automobile

des Porsche AG Konzerns

Production

The Porsche AG Group produced 261,341 vehicles in total in the fiscal year 2025, a decrease of 13.7% on the prior year.

Production of the Porsche AG Group

Units
2025
2024

911

55,371

49,095

718 Boxster/Cayman

15,856

23,790

Macan

79,621

84,330

Cayenne

76,694

93,864

Panamera

22,289

30,369

Taycan

11,510

21,302

Production

261,341

302,750

In Stuttgart-Zuffenhausen, 11,510 Taycan units were manufactured. Additionally, all 55,371 vehicles of the 911 model series rolled off the production line at the main plant.


At the Leipzig plant, the Porsche AG Group produced a total of 101,910 vehicles, which equates to 39.0% of total production. A total of 79,621 Macan models and 22,289 Panamera models were produced in Saxony.


Further information on sustainability within Porsche’s own vehicle production can be found in the non-financial statement. Environment


At the other production locations such as the Volkswagen Group’s multi-brand site in Bratislava (Slovakia) and in Malaysia, 76,694 units of the Cayenne model series were produced. In addition, 15,856 units of the 718 Boxster/Cayman model series were completed at the Osnabrück site. Production was discontinued at the end of October 2025.

Production Headline

2025

Research and development

Since the founding of Porsche AG, its focus has been on innovative research and development as well as the subsequent implementation in vehicles ready for series production. Research and development plays a key role for sustainable value enhancement in the Porsche AG Group. The vast majority of research and development activities as well as the employees working in this area relate to Porsche AG. The cross-brand development network in the Volkswagen Group also strengthens the future viability of the Porsche AG Group.


In the fiscal year 2025, automotive research and development (R&D) costs amounted to €2,292 million (2024: €2,528 million). The decrease resulted from lower automotive capitalized development costs of €963 million (2024: €1,583 million) due to a change in the project mix and different stages of capitalization for current vehicle projects. By contrast, research and automotive non-capitalized development costs increased due to additional expenses in connection with the expansion of the product portfolio. As a result, the capitalization rate fell to 42.0% (2024: 62.6%). The R&D ratio stood at 7.1% (2024: 6.9%).


At €3,159 million (2024: €2,046 million), automotive research and development costs recognized in the income statement were up on the prior-year level. In addition to the increase in research and automotive non-capitalized development costs, automotive amortization of capitalized development costs increased to €1,830 million (2024: €1,101 million), which was mainly due to impairment losses in connection with the realignment of the product strategy.


Overall, as of the reporting date, the Porsche AG Group had 6,833 employees in the area of research and development (2024: 6,728 employees).

Automotive research and development costs

€ million
2025
2024

Automotive sales revenue

Automotive sales revenue

32,185

36,438

Automotive research and development costs

Automotive research and development costs

2,292

2,528

thereof automotive capitalized development costs

thereof automotive capitalized development costs

963

1,583

Capitalization ratio1 (%)

Capitalization ratio1 (%)

42.0

62.6

R&D ratio2 (%)

R&D ratio2 (%)

7.1

6.9

 

 

 

 

Automotive research and development costs recognized in the income statement

Automotive research and development costs recognized in the income statement

3,159

2,046

thereof automotive amortization of capitalized development costs

thereof automotive amortization of capitalized development costs

1,830

1,101

Automotive research and development costs recognized in the income statement3 (%)

Automotive research and development costs recognized in the income statement3 (%)

9.8

5.6

1  Automotive capitalized development costs in relation to automotive research and development costs.

2  Automotive research and development costs in relation to automotive sales revenue.

3  Automotive research and development costs in relation to automotive sales revenue recognized in the income statement.

Personnel

As of the reporting date, the number of employees at the Porsche AG Group fell to 41,780 (2024: 42,615 employees). On average, the Porsche AG Group had 42,066 employees (2024: 42,703 employees) in the fiscal year 2025.


Further information on the workforce of the Porsche AG Group can be found in the non-financial statement. Social

Overall statement on business development and the economic situation

In the fiscal year 2025, the Porsche AG Group pressed ahead with its extensive rescaling and recalibration measures by taking decisive steps to realign its product strategy and battery activities as well as making adjustments to the corporate organization.


The decision made in the third quarter of 2025 to realign the product strategy involves postponing the market launch of certain all-electric vehicle models and continuing to offer combustion and hybrid models. Rescheduling the planned new electric vehicle platform resulted in impairment losses on capitalized development costs and property, plant and equipment as well as provisions for outstanding obligations of around €1.7 billion, which had a negative impact on the Porsche AG Group’s operating profit.


In the 2025 fiscal year, additional expenses from battery activities had an impact of around €0.7 billion on operating profit. The strategic realignment of the Porsche AG Group’s battery activities, which was already decided in the first half of 2025, had a significant impact. Previous plans to expand the production of high-performance batteries by Cellforce Group GmbH will not be pursued separately in the future. This resulted in impairment losses on production facilities, which in turn had an impact on the cost of sales.


Additional import tariffs on vehicles and vehicle parts came into force in the USA. Due to US import tariffs being adjusted, operating profit for the reporting year 2025 was reduced by around €0.7 billion.


Further information on the aforementioned reductions is explained in the Notes to the consolidated financial statements – Significant events.


In the fiscal year 2025, the challenging market conditions in China, particularly in the luxury segment, and the very intense competition, especially for all-electric models, continued to have an impact on business performance. The focus remained on value-oriented sales aimed at balancing supply and demand.


Overall, the Porsche AG Group considers the development of business in the reporting year to be unsatisfactory. The original expectation was not met largely against the backdrop of the persistently challenging economic and political conditions in the USA and China. Furthermore, the Porsche AG Group deliberately accepted an additional impact on earnings resulting from the strategic realignment in order to secure the long-term profitability, which had an additional negative impact on the business development.


The sales revenue of the Porsche AG Group decreased to €36,272 million in the fiscal year 2025 (2024: €40,083 million), falling short of the most recent adjusted forecast.


Operating profit fell from €5,637 million to €413 million. The return on sales of the Porsche AG Group was therefore within the most recent adjusted forecast at 1.1% (2024: 14.1%).


The automotive EBITDA margin decreased to 13.3% (2024: 22.7%), thus exceeding the most recent adjusted forecast.


The automotive net cash flow came to €1,511 million (2024: €3,735 million). The resulting automotive net cash flow margin of 4.7% (2024: 10.2%) was within the original range.


At 22.2% (2024: 12.7%), the proportion of purely battery-powered electric vehicles (automotive BEV share) was above the originally expected range.

Comparison of 2025 forecast of the Porsche AG Group with actual business development

Original forecast 2025
Adjusted forecast 2025
Annual report 2024
Half Year Financial Report Jun. 30, 2025
Quarterly Statement Sept. 30, 2025
Actual business development 2025

Porsche AG Group

Porsche AG Group

 

 

 

 

Sales revenue

Sales revenue

€ billion

39 to 40

37 to 38

37 to 38

36.3

Return on sales

Return on sales

%

10 to 12

5 to 7

0 to 2

1.1

Automotive segment

Automotive segment

 

 

 

 

Automotive net cash flow margin

Automotive net cash flow margin

%

7 to 9

3 to 5

3 to 5

4.7

Automotive EBITDA margin

Automotive EBITDA margin

%

19 to 21

14.5 to 16.5

10.5 to 12.5

13.3

Automotive BEV share

Automotive BEV share

%

20 to 22

20 to 22

20 to 22

22.2

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