While Porsche was a pioneer with the Taycan in 2019, the automaker seems to be slowing down its transition to electric vehicles.
Far from its original goal of 80% electric models sold by 2030, the brand is rethinking its strategy by giving new life to its combustion and hybrid models. But what is really happening in Zuffenhausen, the factory that produces most of Porsche’s models?
Read more:
- Spilling Red Bull in a $5 million Bugatti: a Texan owner challenges the world’s most prestigious automaker and they take on the challenge
- The end of the greatest F1 driver of all time? His team finally reveals why he fell from undisputed master to 7th in the championship
When sportiness and electric don’t mix
Porsche, renowned for its driving performance, is facing a major challenge: replicating the unique driving experience of its combustion cars in electric models. This is especially evident with the upcoming electric 718, initially planned for 2025. The issue? The battery, too heavy and restrictive, limits the sportiness that Porsche fans crave. Disagreements between Porsche and its battery supplier, Valmet Automotive, aren’t helping. Porsche, demanding costly adjustments to improve performance, is reluctant to pay. The result: delays in the project, which could even lead to an extended lifecycle for the combustion versions of the 718 Cayman and Boxster. This cautious decision makes sense since a poorly received electric model could damage Porsche’s image, especially as its core audience, passionate about combustion engines, is already struggling to say goodbye to non-electrified models.
A change of course on multiple fronts
It’s not just the 718 that’s affected. Porsche is considering significant changes for other iconic models as well. Take the Cayenne, for instance: initially, a simple platform update was planned, but the automaker is now considering an entirely new development. Why? Because the electric version of the SUV, expected in 2026, could be delayed by several years. Even the Panamera, slated to be replaced after 2030, could stick around longer. Porsche seems to favor combustion and hybrid versions in response to slowing electric vehicle sales in Europe. For key markets like China and the United States, the automaker is considering more competitive combustion options to counter local electric vehicles that are much cheaper.
The price war and buyer expectations
This strategic shift also stems from economic reasons. High-end electric vehicles are in direct competition with local models, particularly Chinese ones, that are significantly cheaper. For example, in China, a combustion Porsche sells for about $90,000, compared to $50,000 for a comparable local electric vehicle. Porsche might have better chances by engaging in a price war with combustion models rather than with electric ones. Another observation: buyer priorities have shifted. Pure performance, once essential, is now secondary to features like connectivity and practicality. Porsche will need to adapt to stay competitive while avoiding falling too far behind on electric vehicles, seen as the inevitable future of mobility. But given the current market and the hesitation of major automakers, one might wonder if 100% electric is still as inevitable as it once seemed.
This article explores how Porsche is adjusting its strategy in response to the technical and economic challenges of its new fully electric models. Between extending combustion models and revising plans for its SUVs and sedans, the brand is striving to maintain its DNA while adapting to a rapidly changing market.
