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Porsche, the luxury German carmaker, has revealed that it has not exited the Russian market due to its inability to sell its local assets. The company had announced plans to withdraw from Russia shortly after the escalation of the Ukraine conflict in February 2022, joining a host of international corporations, including Apple, IKEA, and McDonald’s, that suspended business operations in the country.

According to Matthias Rauter, Head of Corporate Communications at Porsche AG, the company still has three Russian subsidiaries – Porsche Russia, Porsche Center Moscow, and PFS Russia – and all attempts to sell these companies have been unsuccessful so far. Porsche, which is owned by German automotive giant Volkswagen AG, suspended vehicle deliveries to Russia in March 2022, but pledged to honor all customer warranties.

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. However, 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).

Volkswagen AG, which also owns brands such as Skoda and Audi, has 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.

The void left by Western and Japanese carmakers after halting operations in Russia has 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. Porsche’s failure to exit the Russian market due to its inability to sell its local assets is a significant development in the country’s automotive industry, which has been impacted by international sanctions and pressure.