BERLIN (Reuters) – German sports car maker Porsche AG on Monday reported a 28 percent drop in sales in China in 2024 as lingering weakness in the world’s biggest auto market weighed on German makers .

Porsche, majority owned by Volkswagen, sold 56,887 vehicles in 2024 in China, up from 79,283 in 2023.

The drop weighed on global sales, which fell 3% to 310,718 vehicles from 2023. That came despite growth in its other markets, including an 11% increase at home in Germany.

Chinese consumers are increasingly reluctant to spend money on luxury items amid poor economic growth as a result of a housing crisis in the country.

“Overall, we have shown that we are extremely robust in a challenging market environment in 2024,” Porsche board member Detlev von Platen said in a statement.

Porsche said in October it would shrink its dealer network in China, reflecting persistently weak demand.

Sales of Mercedes-Benz’s flagship cars also fell in 2024, the carmaker said last week, hit by a 7% drop in China, while China sales of the Volkswagen brand fell 8.3% to 2.2 million vehicles.

(Writing by Miranda Murray; Editing by Janane Venkatraman)