It seems that some consumers are not yet ready to completely abandon combustion engines, particularly for prestige vehicles manufactured by Porsche. Faced with sluggish demand for electric vehicles, the Stuttgart manufacturer reaffirms its commitment to good old thermal enginesdisrupting its initial strategy of massive electrification initiated around 2020.
However, one of its 100% electric models, the powerful Porsche Taycan, enjoyed real success in its debut for a car positioned on this price list. However, compared to the sales volumes of Porsche thermal models, the success of this model remains quite limited. Porsche just can’t ensure profitability in the energy transition on one or two vehicles.
The current context is not very favorable to high-end electric vehicles : inflation which continues to grow, purchasing power which collapses and tough competition (BYD, certainly one of the most aggressive, Xpeng, NIO and recently, Xiaomi). Porsche therefore had to readjust its schedule.
CFO Lutz Meschke stated it bluntly: “ We will maintain thermal engines much longer than expected “. A sharp turnaround for the manufacturer, which initially planned to reach 80% of electric sales by 2030. Market signals, particularly in the premium segment, therefore push the brand to review its copy.
A hybrid range to safeguard Porsche DNA
Iconic models like the future electric Cayenne or the 718 could well keep a thermal or hybrid version. “ We are in the midst of conceptual decisions “, clarified Meschke. A pragmatic approach: thermal models are still very profitable for Porsche. By continuing to produce them, the brand ensures a significant cash flow which will allow it to invest in the development of electric models.
This strategy also responds to the difficulties encountered by the current electric models offered by the brand. Despite the launch of the electric Macan and the restyling of the Taycan, sales of zero-emission vehicles are struggling to take offboth in the United States and in China, where local competition offers much more affordable alternatives.
The historic manufacturer finds itself today at a crossroads: renowned for its sporty and high-performance models, it must reconcile its historical values with market requirements. A situation that could be compared to when Porche released its very first Cayenne in 2002. As the brand’s first SUV, it marked a real turning point: larger and more practical, it moved away from the purely sporting image of Porsche. However, without him, it was almost assured bankruptcy for the manufacturer. Today, electrification represents a whole new milestone to cross, just as important.
- Porsche is postponing its electric transition in the face of weak demand and will keep its thermal engines longer than planned.
- The difficult economic context and Asian competition are holding back sales of its high-end electric models.
- A strategy based on maintaining hybrid and thermal will guarantee the profitability necessary to invest in the future electrification of the brand.
