Porsche’s Chinese R&D team is expanding, aiming to fortify its capabilities in intelligent cockpits and advanced driver assistance systems (ADAS), sources told 36Kr. A Porsche spokesperson said that the R&D team is a strategic priority for Porsche China, tasked with adapting smart applications specifically for this market.
Porsche’s R&D operation in China began in 2022, initially focusing on preparing imported models for local sales. In two years, it grew to a modest team of under 50 people, with this hiring round marking the second major expansion.
In Porsche’s cockpit division, the mission is clear: sharpen voice recognition and optimize control features, while ADAS development remains at an early stage and is focused mainly on researching China’s smart driving landscape.
Tesla, another international competitor, spent three years building a 400-person China team to deliver a localized cockpit experience. Porsche’s first hiring push may be smaller, but the company’s roadmap shows a readiness to scale.
An insider told 36Kr that Porsche’s China R&D team is relocating from Shanghai’s Pudong district to Jiading, a city where automotive research gathers pace. There, Porsche will establish its own R&D lab.
In August, Porsche launched its second all-electric model, the Macan SUV, starting at RMB 598,000 (USD 83,720). However, the Macan has yet to recreate the success of the Taycan sports sedan, with buyers in China increasingly prioritizing cost-effective and tech-forward vehicles.
Can this latest tech-driven pivot help Porsche shake off its China sales slump?
Porsche’s path to intelligent driving
Known for its driver-centered brand identity, Porsche is no stranger to smart driving technology, though its rollout has been measured.
In late 2023, Porsche appointed Sajjad Khan, former CTO at Mercedes-Benz, to oversee its smart driving efforts. Khan’s arrival sparked a flurry of investment in tech firms, including US-based Applied Intuition, which specializes in autonomous driving.
On the practical front, Porsche is adopting a diversified strategy.
Initially, the company relied on Cariad, the software subsidiary of its parent company Volkswagen. However, after repeated delays, Porsche announced a partnership with Mobileye in May last year, working together to produce scalable ADAS solutions.
The collaboration centers around Mobileye’s “SuperVision” system, designed for hands-free driving on various terrains. Porsche retains control over integration and feature adjustments to bridge human and automated driving.
With the new Chinese R&D team, Porsche will conduct market research for intelligent driving and later expand the team to tailor these technologies for local drivers.
Porsche is also urgently prioritizing cockpit technology.
The automaker has relied heavily on Apple CarPlay as its primary interface and remains one of the few companies supporting CarPlay 2.0. Starting this year, Porsche updated all models to CarPlay 2.0, enabling users to stream music and control air conditioning and ambient lighting.
Yet, current Porsche models only support basic voice commands. For instance, the Taycan’s voice control includes functions like air conditioning and seat heating, but its recognition speed is limited. Against Chinese brands actively integrating artificial intelligence, Porsche’s voice control experience lacks richness.
However, Porsche’s R&D expansion in China signals a shift in focus.
Can Porsche win back the Chinese market?
Porsche faces steep challenges as its China sales continue to slide.
In 2022, Porsche sales in China approached 100,000 units, maintaining its position as Porsche’s largest market for the eighth year running. But in 2023, annual sales fell to 79,000 units, and this year’s tally from Q1 to Q3 is only 43,000. China’s declining market performance has impacted Porsche’s profits and returns.
Porsche’s electric transition also faced hurdles. The automaker previously announced an ambitious target for 80% of its lineup to be electric by 2030. While Porsche did introduce the electric Macan this year, it hasn’t matched the Taycan’s popularity. Following its debut at RMB 598,000, reception from local markets was muted, according to one Porsche dealer who spoke with 36Kr.
Domestic brands have raised the bar, delivering spacious interiors, luxurious features, and advanced smart driving technology at a lower price point. Porsche’s steep premiums, without the draw of competitive features, are becoming a barrier to sales.
For 2025, Porsche’s Panamera, Cayenne, and Taycan models will feature the latest in-car systems, including popular Chinese apps like iQiyi and native navigation apps. However, voice activation—a top priority for Chinese drivers—remains limited.
Several Porsche owners told 36Kr that simple commands like adjusting temperature or controlling volume often go unrecognized, and advanced navigation functions, such as setting or changing destinations, are not supported. “It feels like Porsche doesn’t understand Chinese,” one owner said. “I need these features. The built-in navigation rarely finds my destination, so I don’t even bother using it.”
Through this R&D expansion, Porsche aims to deliver a more intuitive experience, making its cars “understand Chinese” with broader command capability.
This step could raise the bar for Porsche’s in-car experience, but it may not be enough to close the gap entirely.
Tesla, another international competitor, faced similar localization issues in China. Since 2019, Tesla has assembled a 400-person team to build local features, partnering with Baidu Maps for reliable navigation, and refining voice controls to enhance climate and navigation features with a recent update.
Meanwhile, Chinese brands are advancing with AI-driven voice technology, making Tesla’s standard command-based interface feel outdated. Porsche, facing similar challenges, risks falling further behind.
Porsche’s data shows that the average age of its Chinese customers is 37, with half of them women. Many of these drivers are now favoring brands like Li Auto, Nio, and Xiaomi, where smart cockpit technology is essential. To reverse its sales decline, Porsche could need more aggressive investments in intelligent features to meet this demand.
This article was written by Xu Caiyu and was originally published by 36Kr.
