| Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. In the Asian gaming enclave of Macau, a group of local Porsche owners gathered last week to enjoy free-flowing champagne and bet chips marked with the German carmaker's name on mock roulette games. The glitzy event was organized by one of Porsche's longest-serving dealers in Greater China, Jebsen Motors, to promote the new electric Macan, which was on display at the Ritz-Carlton hotel along with a handful of rare Porsche sports cars. The battery-powered version of the automaker's best-selling sport utility vehicle was first launched in Singapore at the beginning of the year, with deliveries starting this half.  The new electric Porsche Macan crossover SUV outside the Ritz-Carlton Hotel in Macau on Aug. 30. Photographer: Linda Lew/Bloomberg Several of the attendees I spoke with expressed pride in owning Porsches, but not all of them were so keen on the new electric models, including the Taycan, which came out in 2020. The sentiment reflects the wider challenge Porsche faces in one of its biggest markets: A rapid transition to EVs, fierce competition and an economic slowdown led to China sales falling 33% in the first half. "I had a go at driving the Taycan, as a friend has one," said one of the attendees, Kevin, who declined to provide his last name for privacy reasons. "To me, it drove like any other EV, it didn't feel special like a Porsche." Asked if he'd be interested in buying the electric Macan, Kevin shook his head. He said he was more than happy with his Porsche 992, the eighth version of the famed 911 sports car, whose value he expects to hold steady, if not rise, in the long term. The same can't be said for the electric models, he said. The electric Macan starts from $78,800, slightly below the larger Cayenne SUV, which goes for $84,700. Porsche is one of the many foreign brands, from Germany and the US to South Korea and Japan, that are struggling in China. The country's unexpectedly fast transition to EVs and the rapid rise of domestic manufacturers have eroded market share and earnings for international carmakers, forcing a rethink on their approach to the market. The dilemma facing luxury brands is even more complicated, as the aggressive price discounts that mass-market manufacturers including Tesla and BYD have used to maintain sales are likely to end up hurting their brand image and the goodwill of current owners and dealers. In May, disagreements between Porsche and some of its Chinese dealers surfaced publicly. Local media reported some retailers asked for compensation for selling EVs at a loss and objected to this year's sales targets. In response, Porsche said it was in discussions with its partners about how to adapt business strategies, and later replaced its China CEO with long-time executive Alexander Pollich. Like its parent, Volkswagen, Porsche has also dialed back its EV goals. It no longer expects to have EVs account for more than 80% of new-car sales in 2030, saying the transition to plug-in vehicles will take longer than originally assumed.  A mock roulette table set up at the Porsche Macan event in Macau. Photographer: Linda Lew/Bloomberg While the economic environment remains challenging, Porsche continues to systematically drive forward the electrification of its model range in China. It's hired Chinese-American Olympic freestyle skier Eileen Gu to be a brand ambassador, attempting to attract a younger generation of customers. While the jury is still out on the electric Taycan and Macan models, there are already some fans. Sulin Ip, the former Miss International Macau who's now a social media influencer, said that as a Taycan owner, she looked forward to trying the Macan Electric. The car's strong but quiet handling fits female drivers well and elevates her confidence, she said in a post on Instagram, where she has more than 277,000 followers. — By Linda Lew Toyota's decision last year to make America's best-selling sedan only available as a hybrid was provocative at the time, but its latest monthly sales numbers make the move seem like a no-brainer. The Japanese company sold 25,087 Camry sedans in the US in August, all but 107 of which were gas-electric. That was a 51% jump in Camry volumes from a year ago, and an all-time high for the hybrid version. Toyota is riding a wave of demand for vehicles with gas-electric powertrains, with several vehicles only offered as hybrids, including the Sienna minivan and, of course, the Prius models. | 
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