Porsche is shifting gears when it comes to its electric vehicle strategy.
The iconic Zuffenhausen-based brand has decided to scale back its electrification plans while increasing its focus on petrol-powered models.
Despite previous commitments to an electrification target of 80% of sales by 2030, Porsche has adjusted its trajectory. Earlier this year, the company quietly downgraded that goal, and it’s now evident that combustion engine models will remain a significant part of its lineup for the foreseeable future.
According to Automotive News, Porsche plans to continue developing and producing gasoline engines to meet strong demand in key markets.
“There is a clear trend in the premium luxury segment towards cars with a combustion engine, so we will take that into account in our product development cycle,” said Porsche CFO Lutz Meschke.
The shift is evident in the numbers.
As of September, electric vehicles accounted for just 7.3% of Porsche's global sales, a sharp drop from 12% during the same period last year.
Much of this decline stems from lower demand for the Taycan, Porsche's flagship electric car.
Challenges in the Chinese Market
China, a critical market for Porsche, has proven especially challenging. Sales of Porsche’s electric vehicles in the region have plummeted by 29% this year.
Meschke stated that while the overall electric vehicle market in China is booming, the luxury segment isn’t following the same trend.
“There is strong growth in the electric car market in China, but not in the luxury segment,” Meschke noted, adding that this pattern isn’t unique to Porsche but affects other European luxury carmakers as well.
Balancing Electric and Petrol: A Dual Strategy
Despite setbacks, Porsche is not abandoning electric vehicles entirely.
The company plans to expand its EV offerings, including launching an electric version of the Macan. However, it will simultaneously continue developing petrol engines for models like the Cayenne and Panamera.
Interestingly, petrol-powered Macan models will remain available in select markets outside Europe, and Porsche is even exploring hybrid powertrains for vehicles initially designed as electric.
“We are currently evaluating the possibility of adding hybrid or combustion engine variants to originally planned electric models,” Meschke revealed. “What is clear is that we intend to keep the internal combustion engine for much longer.”
