The first three months of 2020 were exceedingly poor for, well, for all of us, really. But things went particularly bad for PCNA, which saw a massive 20+ percentage drop in sales from the previous year. Porsche has been on a growth strategy for almost ten years, and that was a huge hit to the company's sales logs. The coronavirus pandemic saw a huge decline in new Porsche ownership.
Because Porsche reports quarterly sales now, instead of monthly as it has traditionally done, we don't know the full extent of the pandemic's influence on sales. We can assume that April was a particularly bad month, while May and June have seen increases since then as states re-open. The quarterly nature of this report obscures the drama of April's decimated sales. Did things get better from March to April? We can assume that it did, but we won't ever know for sure.
We might see continued improvements in Q3 of 2020, but as COVID-19 cases skyrocket all over the country there's no telling whether we might have to shut everything down again.
Obviously there are some seriously disappointing numbers in this chart. Could anyone have predicted an almost 70% drop in 718 sales year on year? There are 191 Porsche dealers in the US, which means less than one Boxster or Cayman sold per month per dealer in Q2. Wow.
Another interesting point of note is that Taycan sales have done okay for this quarter, selling nearly as many units as the long-standing Panamera. Obviously the two cars don't compete for the same market segment, but if you're looking for a Porsche sedan, those are your choices. Are Taycan sales eating into Panamera sales? Hmmmm.
There are two big bright spots in this quarter's report, however. For one thing, 911 sales continue to improve as the 992 models roll out and begin delivering to clients. PCNA moved over 500 more 911s in Q2 of 2020 than Q2 of 2019. That's big in these terrible times. The other big mover for Porsche? Certified Pre-Owned sales. CPO sales in the U.S. totaled 6,706 vehicles from April through June, up 8.1 percent year-over-year. That tells me that people are still looking for Porsches, but aren't willing to pony up for the full boat price tag of a brand new one. This too shall pass.
"May and June witnessed a rebound of customer demand from April, and record Certified Pre-Owned sales in June are another indicator of sustained passion for Porsche," said Klaus Zellmer, President and CEO of PCNA. "Our dealer partners have gone above and beyond and displayed a high level of agility to ensure customers' safety and mobility at a very challenging time."