Image credits - The Korean Herald
Porsche, the renowned German luxury carmaker, is setting its sights on the dynamic and burgeoning market of the Association of Southeast Asian Nations (ASEAN). Matthias Becker, Porsche’s Vice President of Region Overseas and Emerging Markets, emphasized the importance of the ASEAN region, revealing the company’s commitment to providing diverse Porsche experiences for the growing population of over 650 million people across the ten member countries.
“Our business is based on four pillars – Europe, North America, China, and the ‘overseas region,’ which is becoming more and more important,” stated Becker during a meeting with global reporters.
Becker highlighted the factors driving Porsche’s interest in ASEAN, citing the region’s rapid rise and the youthful demographic. With a median age of 30.2 years, significantly lower than China and Europe, ASEAN presents a vibrant and motivated consumer base. The decision to premiere Porsche’s new all-electric Macan in Singapore underscores the automaker’s commitment to the ASEAN market.
We aim to create value-oriented growth most efficiently, and the customer is the focus of our activities, explained Becker. To achieve this, Porsche is focusing on two key factors: producing cutting-edge sports cars and having the right people with the right mindset.
The “overseas region” encompasses significant markets such as South Korea and Japan, as well as emerging markets like Malaysia and Thailand. Last year, this region contributed 16% to Porsche’s global retail sales, with 52,220 units sold. Over the past five years, the proportion increased by three percentage points, reflecting the growing importance of these markets.
While acknowledging that the top 15 markets are responsible for 90% of sales volume, Becker emphasized the importance of identifying and developing smaller markets with growth potential. Notably, South Korea has seen remarkable growth, boasting a 23% compound annual growth rate between 2010 and 2023. In 2023, Porsche sold 10,501 units in Korea, a substantial increase compared to the 699 units sold in 2010. Korea has now secured its position as Porsche’s fifth-largest market globally, rivalling even larger markets like Canada.
Porsche’s strategy involves adapting to each region’s unique needs, ensuring locally fitting products, and continually innovating in the omnichannel ecosystem. The term “omnichannel” refers to providing a cohesive brand experience across various customer touchpoints, irrespective of the channels used.
As Porsche navigates the evolving automotive landscape, the company’s emphasis on the ASEAN region, particularly with Korea emerging as a pivotal market, showcases the brand’s commitment to sustained growth, customer satisfaction, and a strong presence in diverse global markets.