On the first day of listing, Porsche surpassed Mercedes-Benz and BMW to become the fifth largest car company in the world. Then, within a month, it surpassed Volkswagen and BYD and ascended the throne of the third largest car company in the world. In fact, Porsche should be most grateful to the Chinese, because one-third of its sales come from the Chinese market.
1. The world’s third-largest car company has changed hands
Around the two well-known car brands Porsche and Volkswagen, behind the Porsche family and the Piech family, the power struggle for half a century. However, making money by listing is one of the few consensuses of the two families.
On September 29, Porsche was successfully listed in Frankfurt, Germany, becoming the third luxury car brand to enter the capital market after Faraday and Aston Martin. On the day of its listing, Porsche’s market value was about 75.43 billion euros, significantly ahead of Mercedes-Benz and BMW, becoming the world’s fifth-largest car company, second only to Tesla, Toyota, BYD and Volkswagen.
Then, on October 7, Porsche surpassed the Volkswagen and became the most valuable car company in Europe and the fourth largest car company in the world, with a market value close to that of China’s new energy benchmark car company BYD.
Finally, one month after its listing, Porsche surpassed BYD’s $84.05 billion with a market value of $88.98 billion, becoming the world’s third-largest car company, becoming second only to Tesla and Toyota. Obviously, the capital market is very optimistic about Porsche, which is due to its dazzling performance.
2. One-third of sales come from China
As a luxury sports car brand, although the price of Porsche vehicles remains high, the sales in recent years have been very bright. From 2019 to 2021, Porsche’s global sales were 280,800, 272,200 and 301,900 respectively. The annual sales volume of 300,000 is enough to make many luxury sports car brands envious.
It should be pointed out that, as of last year, China has been the largest single market for Porsche in the world for the last year in a row. From the perspective of regional sales contribution, China is the strongest performer in Porsche’s global market.
The data shows that in 2021, Porsche will sell about 96,000 vehicles in China, an increase of 8% year-on-year, accounting for 31.8% of its global sales; in the first half of this year, Porsche’s global sales will be 148,600, while its sales in China will be 46,700. vehicles, accounting for 31.4% of the total sales.
According to statistics, in the past three and a half years, Porsche has sold more than 310,000 vehicles in China, accounting for about 32.09% of the total global sales. According to the prospectus, Porsche’s sales revenue in China in the first half of this year was 5.64 billion euros (equivalent to 40.74 billion yuan). This data exceeds more than 90% of the self-owned car companies, which is equivalent to the revenue of Dongfeng Group in the first half of the year.
3. How much money does Porsche make?
Porsche is one of the most profitable car companies in the world. The data shows that in 2021, Porsche’s revenue in 2021 will be 33.1 billion euros (about 227.8 billion yuan), operating profit will be 5.3 billion euros (about 36.5 billion yuan), and the profit margin will be 16%, while Bentley’s will only be 13.7%, Audi. It was 10.5%, while the Volkswagen brand was as low as 3.3%.
According to the sales volume of 300,000 vehicles, Porsche will earn 17,600 euros (equivalent to RMB 122,100) for every car sold in 2021. In the first half of this year, this figure rose to 23,900 euros (equivalent to 165,800 yuan).
Why does Porsche make so much money? Because it has found a good balance between brand and volume, it can take into account both price profit and sales scale. Since its establishment in 1931, Porsche has been famous in the world of high-end sports cars, such as the famous Porsche 911. However, the price of this model is too high, and sales are not very large.
Entering the 21st century, Porsche launched the Cayenne and Macan, reducing the price of Porsche from a few hundred in the past to less than one million yuan, or even more than 500,000. As a result, Porsche’s global sales quickly exploded.