Porsche 2004 Annual Report Download - page 48

Markets44
Overall economic conditions were not always positive for the auto-
mobile industry in the review year. A severe rise in petroleum prices
in particular subdued business activity. The result of this was a general
slackening in the demand for automobiles in Europe’s principal sales
markets (Germany, France and Great Britain) but also in Japan and
Australia.
Despite this situation, Porsche’s worldwide sales and dealer organi-
zation succeeded in increasing the volume of deliveries to customers
to 89,704 vehicles, 14.2 percent more than the previous year’s total
of 78,539 vehicles. The figures do not include cars run on company
business or leased by Porsche employees. The increase is all the
more impressive in view of Porsche’s determined refusal to engage in
the ‘discount war’ practiced by its competitors, especially in the USA.
On the contrary, the company has reaped the benefit of concentrating
for many years on the appeal of its products and on a target-oriented
sales strategy. Opening regional offices for the Middle East, Latin
America and the Asia-Pacific area and the establishment of a new
subsidiary in Russia led to high rates of growth in these markets.
Intensive support for independent importers’ efforts to access further
market potential in Southern, Northern and Eastern Europe and in
China has also boosted sales considerably. The increasingly profes-
sional standards of the dealer organization enabled sales even in
long-established markets such as the Netherlands, Italy, France,
Belgium and Spain resulted in sales rising by as much as 41 percent.
All these successful market developments, but also the enlargement
of Porsche presence from 40 to more than 90 countries, have boosted
the proportion of Porsche’s export business from 65 to the current
figure of 85 percent within the past ten years.
Model Change Successfully Mastered
Porsche was able to grow in a relatively weak business climate not
only by opening up new sales regions but also by introducing its
new-generation sports cars successfully to the market.
Dealers’ deliveries of the 911 worldwide in the review year totaled
29,545 units, 21 percent more than in the 2003/04 fiscal year. De-
mand for the S version was especially high: it was chosen by 60 per-
cent of the customers. It is a sign of the 911’s exceptional popularity
that almost all markets had full order books for this model at the
close of the review year. Following the model change, the Boxster
also continued its successful sales progress in the review year, with
17,493 units delivered, 28 percent more than in the previous year.
Sales of the last sports cars from the previous generation were also
mastered successfully.
In the third year following its launch, demand for the Cayenne remained
as high as ever. Despite new competitors in the already strongly
contended Sport Utility Vehicle segment, the number of Cayenne de-
liveries in the review year rose by five percent to 42,097. Porsche’s
sports off-road vehicle thus accounted for 47 percent of the