Sales of fully electric models remain tough
With sales of fully electric models continuing to be tougher than initially expected, Porsche has decided to make major changes to its product lineup in the medium to long term.
Following this decision by the Board of Directors, Porsche will continue to offer its signature ICE (internal combustion engine) models in its product lineup. As fully electric models have not achieved the sales volume initially planned, the company has shifted its focus to expanding its ICE and plug-in hybrid lineup.
The new SUV series, which will be positioned above the Cayenne, which was originally planned to be fully electric, will initially only be offered as an ICE and plug-in hybrid model due to market conditions. Existing ICE models, including the 911, will continue to be sold for the foreseeable future.
Current models such as the Panamera and Cayenne will continue to be sold as internal combustion engines and plug-in hybrids until the late 2030s. For these models, newly developed successor models have been added to the model change cycle plan. Porsche AG CEO Oliver Blume commented on this major shift in management policy as follows:
“We have now finalized our realignment of our product strategy. The automotive industry is currently undergoing major transformation, which is why we are realigning our entire Porsche lineup. Through these efforts, we aim to respond to new market conditions and evolving customer needs, deliver great products to our customers, and solid financial results to our investors.”
Postponement of launch of new BEV platform
The development schedule for a new BEV platform jointly developed with the Volkswagen Group has also been postponed, with the aim of launching it in 2030. The new Cayenne Electric is expected to be introduced as scheduled.
The delay in the electrification of the lineup will likely postpone the planned market launch of fully electric models. In particular, the development schedule for a new electric vehicle platform, originally planned for the 2030s, will be significantly altered. This platform will be redesigned in collaboration with other brands within the Volkswagen Group.
This comes as demand growth for battery electric vehicles (BEVs) has slowed significantly more than initially expected, but the company says it will continue to update its existing BEV lineup, which will include the Taycan, Macan, Cayenne, and a fully electric two-door sports car in the 718 segment.
At the same time, Porsche expects to incur significant additional costs due to changing external factors, including U.S. import tariffs, the shrinking Chinese luxury car market, and the aforementioned slowdown in EV sales.
“This restructuring of the range builds on the measures we have announced so far and creates a balanced product range that gives us more flexibility and strengthens Porsche’s position in the current volatile environment. We want to offer a compelling mix of internal combustion engine (ICE) models, plug-in hybrids and electric vehicles (BEVs) to meet all customer needs,” added Blume.
