Facing slowing EV demand, Porsche delays electric models and returns to combustion and hybrids
by John Halas
9 hours ago
- Porsche delays new EVs as market cools and hybrids return to long-term plans.
- Flagship SUV above Cayenne will now launch without a fully electric version.
- Dedicated EV platform scrapped, will be redesigned with VW Group brands.
It turns out even Porsche isn’t immune to reality checks. Confronted with a prolonged sales slump and mounting pressure on its bottom line, Porsche is shifting gears with a major rethink of its product plans. The sports car maker is leaning back toward combustion engines, including hybrids, while taping the brakes on upcoming electric models, according to a statement issued Friday.
Also: Porsche K1 Three-Row Electric SUV Steps Out For The First Time
“Today we have set the final steps in the realignment of our product strategy,” said Oliver Blume, CEO of both Porsche and the Volkswagen Group. “We are currently experiencing massive changes within the automotive environment. That’s why we’re realigning Porsche across the board. In doing so, we want to meet new market realities and changing customer demands.”
Ultra-Luxury SUV Rethink
One of the biggest changes involves the upcoming ultra-luxury SUV positioned above the Cayenne, known internally as the K1. While it was originally planned to be offered exclusively as a fully electric model, it will now “initially debut” with combustion and plug-in hybrid powertrains only.
PORSCHE K1 SUV
Photos Baldauf
Meanwhile, fans of the gas-powered Panamera and Cayenne can breathe easy. Both models are set to continue with combustion and hybrid power well into the 2030s, with Porsche confirming that successor generations have now been penciled into its long-term Cycle Plan, securing their place in the lineup for years to come.
Delays in the Electric Rollout
A third major shift concerns Porsche’s other planned all-electric models. Without naming specific vehicles (though we suspect some may have been intended as replacements, such as for the current Macan EV), the company said the “delayed ramp-up of electric mobility” will push back their market launches.
More: Porsche Fast-Tracks New Compact SUV With Gas And Hybrid Power
The development of a dedicated next-gen EV platform that was meant to underpin these models, originally scheduled for the 2030s, will no longer proceed as planned. Instead, it will be rescheduled and undergo a full redesign in collaboration with other Volkswagen Group brands.
“This is the company’s response to the significantly slower growth of demand for exclusive battery-electric vehicles,” Porsche noted in its statement.
Even so, not all projects are affected. Porsche confirmed that electric models already deep into development, such as the soon-to-be-revealed Cayenne EV in both standard and coupe-SUV form, as well as a future two-door sports car in the 718 segment, remain on schedule.
These changes build on earlier decisions, such as developing a new combustion-engine SUV to replace the aging Macan, using the current Audi Q5 architecture as its base. It will be sold alongside the Macan EV, which was originally planned to stand alone in the lineup.
Global Pressures Bite
Beyond product planning, Porsche acknowledged that wider global pressures are weighing on its outlook. Rising US import tariffs, a cooling Chinese luxury market, and the slower pace of electric adoption are all shape the company’s cautious stance. The CEO conceded that the updated plan can only partially offset these challenges.
For example, pushing back the new electric vehicle platform will require depreciation and financial provisions, which are set to weigh on operating profit in 2025 by as much as 1.8 billion euros ($2.1 billion at current exchange rates), something the company had not accounted for in its most recent forecast.
For 2025, Porsche is maintaining its sales revenue outlook of 37 to 38 billion euros (approximately $40 to 41 billion). Profitability, however, is expected to be far slimmer, with returns on sales now projected at up to 2 percent, a steep drop from the earlier forecast of 5 to 7 percent.
Source link
