(Reuters) – German sports car maker Porsche on Monday slashed a series of forecasts for 2025 amid U.S. tariffs that are disrupting the global car industry.

Porsche said tariffs weighed on its business in April and May, and it warned that its adjusted outlook does not factor in the future effects of tariffs.

“Currently it is not yet possible to make a reliable assessment of the effects for the financial year,” Porsche said.

Porsche said it now expects sales revenue of between 37 billion euros ($42.21 billion) and 38 billion euros, down from its previous forecast of between 39 billion and 40 billion euros.

It also said it would no longer pursue plans to expand high-performance battery production at its Cellforce subsidiary, and it cited a decline in demand in China for all-electric luxury cars.

The carmaker, which at its stock market debut in 2022 had a higher valuation than its parent company, Volkswagen AG, has fallen from grace since, struggling in particular with low sales in China, its top market, where sales dropped 28% in 2024.

Porsche made the announcements ahead of the release of its first-quarter earnings on Tuesday.

($1 = 0.8767 euros)

(Reporting by Gnaneshwar Rajan in Bengaluru and Tom Sims in Frankfurt; Editing by Alan Barona and Leslie Adler)