(MENAFN) German luxury carmaker Porsche has explained that its continued presence in Russia is due to an inability to sell its local assets, according to a statement made to Russian outlet RBK on Monday. Despite announcing plans to exit the Russian market following the escalation of the Ukraine conflict in early 2022, the company still operates three subsidiaries in the country: Porsche Russia, Porsche Center Moscow, and PFS Russia.

“Attempts to sell these companies have so far been unsuccessful,” said Matthias Rauter, Porsche AG’s Head of Corporate Communications.

Porsche, part of the Volkswagen Group, halted vehicle deliveries to Russia in March 2022 and pledged to uphold customer warranty commitments. At the time, the company said its decisions were influenced by significant uncertainty and instability caused by the conflict.

In 2021, Porsche reported record Russian sales of 6,262 vehicles, generating 46 billion rubles (about $708 million). However, following the suspension of operations, the company faced losses of 248 million rubles (around $3.8 million) in 2022, with revenue dropping to 9.3 billion rubles ($143 million).

Volkswagen, Porsche’s parent company, announced in December 2024 that it had completed the sale of its Russian assets, including those of brands like Skoda and Audi. The deal ended the group's responsibilities for servicing and spare parts for all its brands, Porsche included.

In the wake of Western and Japanese automakers leaving the Russian market, Chinese car manufacturers have taken the lead. By 2024, Chinese vehicles made up 60% of all new car purchases in Russia, while domestic brands accounted for 17.5%, according to data from Avtostat.

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