Porsche radically shifts its electrification plan as slumping EV sales force the sports car maker to maintain ICE vehicle production.
Slowing sales of EVs including the Taycan are forcing Porsche to once again shift its EV plans.
Porsche made it clear that it was placing a big bet on electrification with the company being one of many automakers to embrace a pathway towards an all-electric lineup with ICE models being axed to make room for the sleek state-of-the-art EVs it hoped to sell to a new generation of customers.
However, slowing EV sales forced many automakers to rethink their commitment to the EV revolution and Porsche is no exception. The German automaker confirmed that it will be scaling back its EV ambitions and will instead continue to focus the bulk of its sales plans on continuing to provide ICE-powered models to consumers to help preserve a steady flow of profit and capital.
Porsche EV sales have taken a beating
The Taycan saw its sales slide as Porsche also contends with slumping sales all over the world.
At first glance, it might seem that Porsche is still onboard for EVs with the company confirming that the 718 Boxster and Cayman will still be going away after the 2025 model year. But look past that and you’ll see that Porsche is experiencing the same problem that many other automakers have had, slowing EV sales. In the case of Porsche, the futuristic Taycan has seen a massive collapse in sales and demand with the company admitting that sales of the Taycan have fallen over 50% during the first several months of 2024. The Taycan admittedly was designed to be an ultra-luxury flagship that targeted ultra-wealthy buyers. However, when these buyers begin fleeing in droves to other rivals, it paints a very concerning picture for Porsche.
As a result, the company is backing off of its pledge to have 80% of its sales be derived from EVs. However, the Taycan’s disappearing sales are the least of Porsche’s problems as the company also struggles with slowing sales in China, Europe, and the U.S. three key regions where the company hoped to cement itself as a serious player in the BEV market. Instead, Porsche is finally seeing the writing on the wall with CFO Lutz Mescheke stating during a recent conference call “A lot of customers, first of all, in the premium and luxury segment are looking in the direction of combustion engine cars.”
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A new wave of hybrid models are coming
Porsche will still make EVs but the new strategy will allow the company to still have a cushion to work with when it comes to broader sales.
As a result of this shift in plans, Porsche will be creating a new series of hybrid and ICE models with refreshes of models like the Cayenne and the Panamera also being part of the plan. In the meantime, Porsche is also putting effort into launching its second all-electric model the Macan with the EV being placed into the hotly contested SUV market.
Production of the Macan EV is still ramping up but the company will also keep the gas-powered Macan around to help give customers an alternative especially if they are not ready to make the full switch to electric vehicles yet. An all-electric version of the 718 is also expected to make its appearance in the near future and will be joined by an all-electric version of the Cayenne shortly after. With this renewed balance in the lineup, look for Porsche to be in a better place in terms of sales though the Taycan could be in danger of being axed if it can;t shake its sales woes.
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