(Yicai) April 28 -- German luxury carmaker Porsche said it will establish a research and development center in Shanghai's Jiading district that will become operational in the second half of this year.

The China R&D Center will focus on developing integrated hardware and infotainment and driver assistance systems for the Chinese market, Porsche announced at the Shanghai Auto Show. With an office area exceeding 10,000 square meters, specialized workshops, and human-machine interface laboratories, the center will eventually house more than 300 engineers, it added.

The first infotainment systems made for the Chinese market, which will also be the center's first technological achievement, are planned to be integrated into Porsche models next year, the Stuttgart-based carmaker noted.

Setting up the new R&D center aims to deeply integrate advanced intelligent technologies that better understand driving and user needs, said Li Nan, vice president of Porsche China's technology department. The goal is to meet Chinese customers' demand while preserving the firm's unique driving experience, striving to become an exemplary fusion of local tech and driving experience, Li added.

The Chinese market was once Porsche's largest single global market and remains vital for the company, according to analysts. However, its China sales plunged to 56,900 units last year from a peak of 95,700 units in 2021 due to intensifying competition, they pointed out.

Porsche has made several adjustments to boost its China sales. It appointed Alexander Pollich to replace Michael Kirsch as president and chief executive of its local arm to manage its Chinese mainland, Hong Kong, and Macau business last September, while also reforming its dealer network, with plans to keep around 100 local dealers by the end of next year.

Porsche brought 18 exhibition vehicles to the Shanghai Auto Show, which runs from April 23 through May 2, its largest-ever showcase in China. The 911 Spirit 70 and the 911 GT3 made global debuts at the event.

China One R&D, Porsche's innovation engine driving tailored tech solutions, from intelligent infotainment to assisted driving, designed in China for China, are not just an adaptation but a pledge to evolve with the country's dynamic market, Pollich pointed out.

Editor: Martin Kadiev