Impact of EU Cybersecurity Regulations on Traditional Automakers' Supply Chains and Analysis of Porsche's Competitive Landscape

Now, based on the collected data, I will prepare a systematic and comprehensive analysis report for you.

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The United Nations World Forum for Harmonization of Vehicle Regulations (UN/WP.29) formally adopted two key automotive cybersecurity regulations in January 2021:

and [1][2]. These two regulations form the core international standard framework for global automotive cybersecurity.

Regulation	Full Name	Core Requirements	Effective Date
UN R155	Cyber Security Management System (CSMS)	Manufacturers must establish a cybersecurity management system covering the entire vehicle lifecycle, including design, development, production, operation and maintenance, and end-of-life stages	January 2021
UN R156	Software Update Management System (SUMS)	Establish a standardized software update management system to ensure the security and integrity of OTA updates	January 2021

Starting from

, all new vehicle models must obtain UN R155/R156 certification to be sold in including the EU, Japan, South Korea, and Australia[1][2]. This marks the shift of automotive cybersecurity from a “recommended practice” to a “market access prerequisite”.

EU cybersecurity regulations have caused systemic shocks to the supply chains of traditional automakers, mainly reflected in the following aspects:

1. Increased Supply Chain Security Audit Requirements
   : UN R155 requires manufacturers to conduct risk assessments for each link in their supply chains to ensure that software and hardware components obtained from suppliers meet cybersecurity standards[1]. Japanese automotive industry associations released the initial version of the Software Bill of Materials (SBOM) in July 2024, with over 100 companies including Toyota, Denso, and Hitachi joining the Japan Automotive ISAC[1].

2. Significant Increase in Compliance Costs
   : The EU’s Cyber Resilience Act (CRA), passed in October 2024, requires software suppliers to provide SBOMs by 2027, with non-compliance resulting in fines of
   at least €15 million
   [1].

3. Extended Product Launch Cycles
   : Compliance audits, certification processes, and supply chain security validation have significantly extended the time cycle for new models from R&D to market launch.

According to Porsche’s official statement,

[3]. The specific manifestations are as follows:

• 718 Series
  : Annual deliveries reached 18,612 units, a 21% year-on-year decline, mainly due to model replacement and discontinuation; mass production officially ceased in October 2025. Porsche originally planned to launch both the fuel-powered and electric versions of the Macan in Europe in 2024, but the
  fuel-powered version was discontinued in Europe for failing to meet UN R155 requirements
  [1][3].

• Fuel-powered Macan
  : Available in most global markets (with annual deliveries of 38,961 units), but cannot be sold in the EU market due to regulatory restrictions, which explains the 13% decline in Europe (excluding Germany) and 16% decline in Germany[3].

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Porsche’s global new vehicle deliveries in 2025 reached

, representing a compared to 310,718 units in 2024[3]. This means that after years of consecutive delivery records, Porsche’s deliveries have fallen below the previous year’s level.

Region	2025 Sales (Units)	Year-on-Year Change	Main Reasons
North America	86,229	Flat	Largest sales region, maintaining stability
Overseas & Emerging Markets	54,974	-1%	Slight decline
Europe (excluding Germany)	66,340	-13%	Impact of EU cybersecurity regulations
Germany	29,968	-16%	Impact of EU cybersecurity regulations
China	41,938	-26%	Pressure on luxury car market, fierce electric vehicle competition

Model	2025 Sales (Units)	Year-on-Year Change	Reason for Decline (if applicable)
Macan Series	84,328	+2%	Electric version accounts for over half, fuel version restricted
Cayenne Series	80,886	-21%	High base from previous year
911 Series	51,583	+1%	Set a new delivery record
Panamera	27,701	-6%	Weak market demand
718 Series	18,612	-21%	Model discontinuation + supply shortages
Taycan	16,339	-22%	Slowing growth of global electric vehicle market

Matthias Becker, Porsche’s Board Member for Sales and Marketing, stated: “After years of consecutive delivery records, our deliveries fell below the previous year’s level in 2025. This trend was expected, mainly due to supply gaps for the 718 series and fuel-powered Macan, continued weak demand for high-end customized models in the Chinese market, and the company’s value-oriented product supply regulation strategy.”[3]

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In 2025, the three major German luxury automakers BBA (Mercedes-Benz, BMW, Audi) suffered a collective setback in the Chinese market, with their combined sales

compared to 2024[4][5][6].

Brand	2025 China Sales (10,000 Units)	Year-on-Year Change	Impact on Global Position
BMW	62.55	-12.5%	Declined by over 10% for two consecutive years, remains the top seller among BBA
Mercedes-Benz	55.19	-19%	Sharpest decline, 7% growth in Q4 shows signs of stabilization
Audi	61.7	-4.9%	Smallest decline, market share rebounded against the trend

’s sales in China have declined by over 10% for two consecutive years, dropping by nearly 200,000 units compared to 820,000 units in 2023[5][6]. Its core dilemma lies in the systemic mismatch between global standardized model R&D and the rapid iteration demands of the Chinese market.

delivered 551,900 units in China in 2025, compared to 714,000 units in 2024[4][5]. However, in the fourth quarter, Mercedes-Benz sold 133,600 units in the Chinese market, , showing signs of stabilization.

’s total sales declined by 4.9%, but the decline was the smallest among BBA; it also , and its fuel vehicle sales and market share [6]. This is attributed to its clear fuel vehicle strategy and “full-domain luxury” product layout.

China’s luxury car market is undergoing profound changes; while the high-end new car market priced above RMB 300,000 is shrinking overall,

[4][5].

Brand	2025 Market Performance	Competitive Advantages
Aito	Aito M9 has ranked first in sales of luxury SUVs priced above RMB 500,000 for 20 consecutive months, with cumulative deliveries exceeding 260,000 units since launch; Aito M8 has accumulated over 150,000 deliveries in 8 months since launch	Huawei Intelligent Driving + HarmonyOS Cockpit
Xiaomi	Annual deliveries exceeded 410,000 units, surpassing the 350,000-unit target; the YU7 received over 200,000 pre-orders within 3 minutes of launch	Brand appeal + ecosystem synergy
Li Auto	Annual sales of 406,000 units, missed the target but maintained advantages in the family car market	Precise positioning + extended-range technology

has become a hot topic in the industry. Cui Dongshu, Secretary-General of the Passenger Car Market Information Joint Conference of the China Automobile Dealers Association, pointed out: “The Xiaomi SU7 is similar in design to the Porsche Taycan, has comparable range, offers the same or even better performance, but is priced at only one-sixth of the Taycan. At this point, Porsche only has brand value left, no longer product value.”[7]

Porsche sold

, far exceeding the global average decline of 10%[3][7]. This reflects multiple underlying issues:

1. Lagging Electrification Transformation
   : In 2024, new energy vehicles accounted for only 27% of Porsche’s deliveries in China, with Taycan sales falling 49%[7]. In 2025, global Taycan deliveries reached 16,339 units, a 22% year-on-year decline.

2. Backward Intelligent Experience
   : The smoothness and localized functions of Porsche’s in-car infotainment system cannot meet Chinese consumers’ high demands for intelligence.

3. Diluted Brand Premium
   : Some models offer terminal discounts of up to RMB 300,000, with multiple Porsche models sold at a 35% discount (as low as 65% of the original price)[7].

4. Channel Contraction
   : The Porsche Center in Zhuhai closed in November 2025, and multiple Porsche 4S stores in Wenzhou, Yiwu, Shaoxing, Yongkang, Cangzhou and other places shut down within less than a year[7].

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The definition of value in China’s luxury car market is undergoing a fundamental transformation. According to a survey by the China Passenger Car Association (CPCA),

, and such intelligent experiences have become the core driver for users to switch from traditional luxury brands to new force automakers[5].

Dimension	Traditional Luxury Car Standards	New Luxury Car Standards
Core Value	Brand + Mechanical Quality	Intelligence + Experience + Ecosystem
Technical Focus	Engine, transmission, chassis tuning	Intelligent driving, HarmonyOS Cockpit, OTA updates
Competitive Factors	Brand premium, build quality	Dialect interaction, multi-modal perception, ecosystem synergy
User Expectations	Status symbol, mechanical texture	Technological experience, continuous evolution

McKinsey’s 2025 China Automotive Consumer Insights Report shows that

[4]. When Chinese brands demonstrate better performance in intelligence, the premium advantage that BBA relies on from accumulated brand equity is gradually weakening.

The fluctuations in BMW’s China market share are essentially a

[5]. Taking the core electric model iX3 as an example:

• The R&D cycle based on a modified fuel vehicle platform is longer than the R&D and delivery cycle of similar models from domestic brands
• The iteration speed of localized functions after launch is relatively slow
• The iDrive system’s dialect coverage was long limited to a few types, while the HarmonyOS Cockpit supports 16 dialect variants, with a maximum multi-turn dialogue understanding accuracy rate of 98%[5]

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Facing severe challenges, BBA has identified 2026 as a critical year for transformation, and will

[6]:

Brand	2026 Plan	Core Technical Direction
Mercedes-Benz	Over 15 all-new/facelifted products	MB.EA pure electric platform + MMA modular architecture, AI-enabled intelligent cockpit
BMW	Approximately 20 new products	Neue Klasse pure electric architecture, locally produced next-generation iX3
Audi	Multiple flagship models	Huawei ADS 2.0/ADS Intelligent Driving System, Q6L e-tron family

, the all-new pure electric Cayenne made its global debut in November 2025, and will be officially delivered in the first batch of markets starting in spring 2026, and will be sold alongside the fuel-powered and plug-in hybrid versions of the Cayenne[3].

Brand	Cooperation Direction	Specific Measures
BMW	Huawei Ecosystem	In-vehicle ecosystem based on HarmonyOS NEXT, digital key, HUAWEI HiCar
Audi	Huawei Intelligent Driving	Q6L e-tron and A5L equipped with Huawei ADS 2.0/ADS Intelligent Driving System
Mercedes-Benz	Momenta Intelligent Driving	All-new pure electric CLA equipped with jointly developed ADAS
BMW	Localized Production	RMB 2 billion capital increase for the Shenyang base, local production of next-generation iX3

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1. The impact of EU cybersecurity regulations is structural
   : UN R155/R156 is not just a compliance requirement, but a comprehensive test of traditional automakers’ supply chain management capabilities. The supply shortages of Porsche’s 718 and fuel-powered Macan are just the tip of the iceberg; the entire industry is undergoing a paradigm shift from “one-time compliance construction” to “continuous security operations”[1][2].

2. Reshaping of China’s Luxury Car Market Landscape
   : The three BBA brands saw a combined sales drop of approximately 260,000 units in 2025, while domestic new force brands (Aito, Li Auto, Xiaomi, etc.) continue to increase their market share in the segment priced above RMB 300,000[4][5]. This is not a simple market share shift, but a
   fundamental change in the right to define luxury value
   .

3. Traditional Automakers Face Systemic Challenges
   : The dilemmas of traditional luxury brands such as BMW, Mercedes-Benz, and Porsche are essentially a
   systemic mismatch between global standardized R&D systems and the rapid iteration demands of the Chinese market
   , as well as a gap between brand value perception and consumer expectations[5][7].

2026 will be a critical node for the transformation of traditional luxury automakers:

• Regulations will continue to tighten
  : China’s GB 44495-2024 will be implemented in 2026, requiring automakers to establish a full-lifecycle cybersecurity management system[2]
• Intelligent competition will intensify
  : Level 3 autonomous driving and high-end intelligent cockpits will become the core battlefields
• Depth of localization determines competitiveness
  : The automaker that can faster establish a localized R&D and decision-making system adapted to the rhythm of the Chinese market will take the initiative in the next stage of competition

The global automotive industry is standing at a dual turning point of electrification and intelligence. Porsche’s dilemma and BBA’s collective decline reflect not just the strategic mistakes of individual enterprises, but the systemic adaptation challenges faced by the entire traditional automotive industry under the impact of new technological waves.

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[1] ARTC - International Regulations and Response Measures for Connected Vehicle Cybersecurity (https://www.artc.org.tw/tw/knowledge/articles/13776)
[2] ZuoSi Automotive Research - 2025-2026 Global and China Autonomous Driving Policies, Regulations, and National Automotive Market Access Research Report (http://www.pday.com.cn/Htmls/Report/202601/24554803.html)
[3] IT Home - Porsche’s 2025 Global Deliveries Reach 279,400 Units, Down 10% YoY; Chinese Market Slides 26% (https://www.ithome.com/0/913/866.htm)
[4] EET China - BBA’s China Sales Decline! Luxury Car Market Above RMB 300,000 Undergoes Reshuffling! (https://www.eet-china.com/mp/a467318.html)
[5] Securities Times/China Securities Journal - BMW’s China Sales Decline; Localization Measures Seek to Solve System Adaptation Dilemma (https://www.cs.com.cn/cj2020/202601/t20260116_6533498.html)
[6] OFweek New Energy Vehicle Network - Launching Over 40 New Models This Year, BBA Aims to Regain Lost Ground (https://mp.ofweek.com/nev/a156714820627)
[7] Southern Plus - Profits Plunge 99%, Why Can’t Porsche Sell Anymore? (https://www.nfnews.com/content/5yppKYLKyp.html)