Porsche’s grip on the Chinese luxury car market is slipping. Once the automaker’s largest market for eight consecutive years, China has seen a dramatic decline in Porsche sales, down 29% in the first nine months of 2024. The drop has forced the German carmaker to announce plans to close nearly 30% of its dealerships in the country by the end of 2026.

Porsche, which currently operates 138 dealerships, will reduce that number to approximately 100 by the end of 2026 as it seeks to consolidate operations and focus on profitability. Key markets like Beijing and Shanghai will see renewed investment, while underperforming regions will be phased out, the company said in a call with investors.