German sports car maker Porsche has opened an integrated research and development center in Shanghai, deepening its push to localize technology and product development in the world's largest auto market.

The 10,000-square-meter facility, which brings together R&D, procurement and quality teams under one roof, is Porsche's first R&D site of this scale outside Germany, substantially boosting local innovation capabilities.

The move marks a significant escalation of Porsche's "In China, for China" strategy as global automakers race to keep pace with China's rapid advances in digital services, user interfaces and connected-car ecosystems.

"China is leading the way in future mobility," said Oliver Blume, chairman of the executive board of Porsche AG, at the opening ceremony on Wednesday. "Solving the challenges of this transformation isn't possible from afar — it has to happen here."

The new center gives Porsche's China unit greater autonomy, allowing the company to shorten development cycles from "years to months", according to Sajjad Khan, Porsche's board member responsible for Car-IT.

The first major output — a China-exclusive infotainment system — is due to appear in several model lines starting mid-2026. The system will integrate local digital services, offer AI-powered voice functions and feature 3D vehicle controls.

The German sports-car maker is stepping up local investment at a time when multinational brands are under intensifying pressure from China's NEV startups, which have set the pace in software-driven vehicle development.

By integrating core functions locally, Porsche aims to tailor products more closely to Chinese consumer expectations, particularly in areas such as digital services, connectivity and user experience.

"This is a defining moment in our commitment to China," said Alexander Pollich, president and CEO of Porsche China.

The R&D upgrade consolidates existing resources from Porsche Engineering China, Porsche Digital China and the company's local technical division into a single hub with expanded authority.

"Development in China is not a sprint; it is a marathon. We are committed to running this race with endurance, focus, and a deep-seated belief in our future here," Pollich said.

"Our long-term strategic commitment is demonstrated through decisive action and sustained investment. In addition to the China R&D, we have introduced several China-exclusive models this year, including the Active and Passion SUV editions, as well as the Panamera Exclusive Signature," he said.

Pollich said efforts to foster deeper emotional connections with Chinese customers are also underway, including the launch of Porsche's first brand pop-up in Asia, located in Shanghai.

China has played an increasingly central role in Porsche's development pipeline over the past decade. Porsche Engineering set up its first local office in Shanghai in 2014 and expanded to Beijing in 2022.

A dedicated digital team created in 2019 was spun off into Porsche Digital China two years later, and an R&D satellite began operations in 2022.

The new Shanghai hub will complement Porsche's global R&D center in Weissach, said Michael Steiner, deputy chairman and head of R&D.

"By combining our engineering excellence with China's digital strengths, we aim to create something truly unique," he said.