Porsche AG to be removed from Germany's DAX 40 index after sharp stock decline and industry headwinds. Image: Carscoops.
(The Post News) –In a dramatic shakeup to the standard German share index, Porsche AG will be excluded from the DAX 40 on September 22 after its stock price dropped 33% in the last year and increasing pressure worldwide on the automotive industry.
Deutsche Boerse’s manager of the Stoxx index announced on Wednesday that Scout24 and GEA Group would be included in the index and replace Porsche and Sartorius. The reshuffle is reflective of stepped-up reallocation by investors away from traditional carmakers to web and industrial companies with greater short-term strength.
Porsche Stock Performance Decline
Porsche entered the DAX in December 2022, shortly after its record-breaking IPO. But the luxury carmaker’s shares have fallen 24% so far in 2025, under the pressure of:Higher U.S. tariffs, poor Chinese demand, overruns in electric vehicle (EV) production, and overall pressure on the auto industry
The firm will now be included in the MDAX, which covers Germany’s mid-cap companies. “The DAX would be a weaker index in terms of one of Germany’s most valuable companies,” CEO Oliver Blume stated in an interview with *Frankfurter Allgemeine Zeitung. “We have the clear objective to return to the DAX as quickly as possible.”
Blume attributed fault to Porsche’s free float, which was too low to be eligible for inclusion in the DAX, for being expelled, although the brand is highly regarded across the world.
The inclusion of Scout24, the largest real estate listings site in Germany, and food and industrial machinery group GEA Group in the DAX is a major sector rotation for the DAX.
Of the 40 components of the DAX, 13 of them experienced over 20% increases in Q1 2025, mostly in technology and infrastructure, as investors increasingly avoid traditional automakers, especially now that EV expansion is slowing and trade tensions are rising.
Porsche’s withdrawal is a sign of increasing short interest in automobile stocks, including its rivals Volkswagen and BMW, due to global uncertainty and declining margins.
Brand Resilience
The bid failed, but Porsche is still a valuable asset to Germany’s industrial foundation and is majority-owned by the Volkswagen Group.
As part of its earnings report in July 2025, Porsche announced a string of strategic moves to reverse its performance, including price increases across model segments. Restructuring operations for cost reduction and another focus on profitability at the core
The company sees the steps as strengthening investor confidence and driving a return to the DAX in future rebalancing periods. The revamp of DAX takes effect Sunday, Sept. 22, 2025, with the new roster appearing in markets starting Monday, Sept. 23.
For shareholders, the reorganization is a piece of an even broader restructuring of German stocks, under which performance, innovation, and sustainability increasingly become front and center over the glamour of name-brand fame.
Porsche’s withdrawal from the DAX is metaphorical and tangible proof of legacy car manufacturers’ conundrums to deal with in an increasingly changing world economy. While its DAX days are counted, at least for now, the company’s ambitions and market prospects are still very much available for the taking.
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