Porsche Opens First Overseas R&D Hub in Shanghai Amid China Sales Pressure

(Yicai) Nov. 7 -- Porsche has opened its first overseas research and development center in China, as the German luxury carmaker seeks to speed up innovation in the country’s fast-evolving market amid flagging sales there.

The center, which was officially opened in Shanghai’s Jiading district on Nov. 5, puts R&D, procurement, and quality control under one roof, said Oliver Blume, chief executive of Stuttgart-based Porsche, adding that it also enjoys decision-making independence to shorten development cycles from years to months.

China’s auto market is characterized by high electric vehicle adoption, high demand for digital connectivity, strong domestic brands, and fierce competition. To stay competitive, foreign automakers are increasingly going for localized development, and Porsche’s R&D hub embodies its “In China, for China” strategy.

Work at the hub will be guided by the Chinese market’s needs, with the firm’s headquarters delegating significant authority and procurement integrating local resources, said Li Nan, vice president of Porsche China’s technology division.

On working with Chinese technology firms, Li added that Porsche does not blindly pile on features in the connected car space and maintains independent control over key systems.

Porsche’s sales in China, which has been its largest single market since 2015, have been under pressure since 2023. They plunged 26 percent to 32,000 in the first three quarters of this year from a year earlier.

The 10,000-square-meter R&D hub had a soft opening in April. Its first technological achievement, a China-exclusive infotainment system, was unveiled in September and is scheduled to start being installed in vehicles from next year.