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As EV sales slip, Porsche shifts focus to hybrids and ICEs
Poor sales of the Porsche Taycan have pushed the brand to review its long-term goals. (3 min. read)
Colin Velez
November 27, 2024
Porsche plans to launch new lineups of internal combustion engine (ICE) and hybrid vehicles, after backtracking on its ambitious electrification goals.
Driving the news: While Porsche had initially planned for 80% of sales to come from electric cars by 2030, it has only until recently offered one battery-powered model, the Taycan, deliveries of which are down 50% year-over-year.
To make up for the slower-than-expected energy transition, the luxury automaker now plans to sell a new series of “efficient ICEs” and “exciting hybrids,” alongside “innovative EVs.”
During the brand’s Q3 earnings presentation, Porsche CFO Lutz Meschke attributed the shift to premium and luxury car buyers, who he said are “looking in the direction of combustion engine cars.”
Current gas-powered models, including the Panamera and Cayenne, are also expected to get a revamp under the new plan.
Looking ahead: Porsche’s plans to dial back EVs and push for other drivetrains highlight the struggles of electric car makers.
EVs continue to be unprofitable for most companies, most of whom are contending with lower revenues amidst stiff competition from Chinese brands.
While sales have been on the rise under the Biden Administration, President-elect Donald Trump’s plan to cut EV tax credits is expected to lower demand by up to 27%.
Since Porsche is a luxury brand, it is unlikely to be affected by the removal of tax incentives, whose eligibility requirements come with price limits. However, lower electric car sales are likely to deter automakers from transitioning to eco-friendly models even more, regardless of brand demographic.
Bottom line: While Porsche’s shift back to ICE is hardly unexpected given its struggles with EVs, it also offers insight into the future. Should other brands follow suit, the industry may see a broad pullback from electrification as automakers resort to reliable profit drivers.
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