Business development
Macroeconomic and sector-specific environment
Development of global economy
In the fiscal year 2024, the global economy continued to recover, albeit at a slower pace than in the prior year. This trend was seen in both the advanced economies and the emerging markets. Although inflation rates are falling in many countries, they are still relatively high which, coupled with the ongoing restrictive monetary policy of some central banks, has dampened economic growth in many countries. Since the middle of the reporting period, a number of central banks have started to reduce their key interest rates.
Germany
Similar to the prior year, the German economy contracted by 0.2% (2023: down 0.1%). On average, the seasonally adjusted unemployment rate rose slightly. At the same time, the average annual inflation rate fell.
Europe
The Western European economy grew by 0.8% (2023: up 0.5%), slightly stronger than in the prior year. 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 four steps since June 2024. In 2024, the economies in Central and Eastern Europe reported a slight year-on-year increase in growth of 3.2% (2023: up 3.1%).
North America excl. Mexico
In the USA, economic output grew at a slower pace of 2.8% (2023: up 2.9%) than the prior year. The US Federal Reserve continued to pursue its restrictive monetary policy for the time being, as inflation remained high and the labor market tight. The key interest rate was cut for the first time in September of the current reporting year, followed by two further cuts. The growth rate in Canada was down slightly on the prior year at 1.3% (2023: up 1.5%).
China incl. Hong Kong
Economic growth in China was at a high level compared to other parts of the world, but at 5.0% (2023: up 5.2%) was slightly weaker than in the prior year.
Market development for the automotive segment
In the fiscal year 2024, the global volume of the passenger cars market was up slightly on the prior year at 79.2 million vehicles, with most passenger car markets recording growth. The supply situation continued to return to normal and vehicle affordability improved to some extent.
In addition to fiscal policy measures, the sector-specific environment was primarily 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 2.8 million units (down 1.0%), the number of new car registrations in Germany in 2024 was on a par with the prior year. The change in incentives for electric vehicles in the prior year had a dampening effect on the development of new registrations. By contrast, the demand for vehicles with conventional and hybrid drivetrains increased.
Europe without Germany
In Western Europe (excl. Germany), the number of new passenger car registrations in 2024 increased by 0.3% to 8.8 million vehicles, matching the prior-year level. Development in the other major individual passenger car markets was mixed in 2024: Spain recorded noticeable growth of 8.7%. The United Kingdom (up 2.6%) recorded slight growth, Italy (down 0.4%) was on a par with the prior year while France (down 3.2%) recorded a slight decline.
In Central and Eastern Europe, the passenger car market volume increased significantly by 17.5% in the fiscal year 2024 to 2.6 million vehicles. The number of sales developed largely positively in the individual markets of Central and Eastern Europe.
North America excl. Mexico
In the region North America excl. Mexico, sales figures for passenger cars in the fiscal year 2024 rose to 17.9 million units – an increase of 3.4% year on year. In the USA, the volume stood at 16.0 million units, an increase of 2.7%, due to improved availability and affordability of new vehicles on average. In Canada too, sales figures increased noticeably by 1.9 million vehicles (up 9.3%).
China incl. Hong Kong
In the region China incl. Hong Kong, the number of new registrations of passenger cars increased slightly by 4.8% to 23.4 million units in 2024. The development of the Chinese passenger car market was characterized, among other things, by government purchase incentive programs and lower prices. A negative trend in demand was observed in the luxury segment.
Market development for the financial services segment
Demand for automotive financial services was high in all regions in 2024.
Deliveries
Despite various model changes and the challenging market situation in the region China incl. Hong Kong, the Porsche AG Group’s deliveries1 were robust in the fiscal year 2024. Overall, the sports car manufacturer delivered 310,718 vehicles, down 3.0% compared with 2023. The Porsche AG Group countered the decline in deliveries in the region China by increasing its focus on deliveries in the other regions. The result is a globally balanced sales structure.
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
