Porsche is making a bold move in response to slowing EV demand, especially in the luxury market. The automaker is shifting focus back to combustion engines and plug-in hybrids, investing around €800 million in their development. This strategic pivot also includes advancing battery technology within Porsche's subsidiaries.
- Due to slowing EV growth, Porsche is now focusing on developing additional gas and plug-in hybrid models
- Costs associated with the development have led Porsche to cut its profit forecast for 2025
- Porsche may terminate the contracts early for the bosses of its finance and sales divisions
Profit Warning & Leadership Shakeup
Porsche’s shift isn’t coming cheap. The additional investment is expected to shrink profit margins to 10-12% in 2025, well below its mid-term target of 17-19%. This has already caused concerns among investors, leading to a decline in Porsche’s share value.
What’s Next for Porsche?
Porsche’s shift signals a rebalancing of priorities not an abandonment of EVs, but a more diversified approach. While the company continues to invest in electric mobility, it recognizes that hybrid and combustion models will play a crucial role in the future of performance and luxury cars.
This decision marks a turning point for Porsche and possibly the wider auto industry. Could this be the beginning of a larger shift away from full electrification? Time will tell.
