The high-end German automaker was among the first to announce plans to exit the country but claims it faced challenges selling local assets

Luxury German carmaker Porsche has not exited Russia due to its failure to sell assets in the country, the company told Russian business daily RBK on Monday. The high-end auto-brand had announced plans to withdraw shortly after the escalation of the Ukraine conflict in February 2022.

Porsche joined a raft of international corporations present in Russia, including Apple, IKEA, Microsoft, IBM, Shell, McDonald's, and H&M, that suspended business operations in the country, citing intense international pressure and sanctions risks.

"Porsche AG still has three Russian subsidiaries - Porsche Russia, Porsche Center Moscow, and PFS Russia," Matthias Rauter, Head of Corporate Communications at Porsche AG told the newspaper. "All attempts to sell these companies have so far been unsuccessful."

Porsche, which is owned by German automotive giant Volkswagen AG, suspended vehicle deliveries to Russia in march 2022, weeks after the escalation of the Ukraine conflict, pledging to honor all customer warranties.

"With the extensive interruption of its business activities in Russia, Porsche is basing its decisions on the overall situation, which is characterized by great uncertainty and the current upheavals," the company said in a statement at the time.

In 2021 Porsche sold a record 6,262 cars in Russia, generating 46 billion rubles (approximately $708 million) and marking a 10% year-on-year increase. The following year, the company reported financial losses of 248 million rubles (approximately $3.8 million) due to the suspension of business operations in the country, with revenue at 9.3 billion rubles (around $143 million).

In December 2024, Volkswagen AG, which also owns brands such as Skoda and Audi, told RBK it had finalized the sale of its stake in Volkswagen Group Rus, its Russian subsidiary that operated five local enterprises.

The company noted that the deal absolved Volkswagen Group of all obligations regarding after-sales service for vehicles previously sold in Russia, as well as the supply of spare parts. It emphasized that this applied to all of its brands, including Volkswagen, Skoda, Audi, and Porsche.

The void left by Western and Japanese carmakers after halting operations in Russia has since been filled by Chinese manufacturers. According to data from the analytics agency Avtostat, Chinese-made cars accounted for approximately 60% of all new vehicle spending in Russia in 2024, while domestic brands held a 17.5% share.

(RT.com)