- 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
Porsche has warned that its 2025 profits will take a major hit due to additional investment required to expand its lineup with new gas and plug-in hybrid models.
The automaker, while announcing on Feb. 6 some preliminary financial figures for 2024, said the additional investment, which will also include funding for “battery activities” within Porsche’s own subsidiaries, is expected to total around 800 million euros (approximately $826 million).
The hit to profits is expected to reduce profit margins to around 10-12% in 2025, Porsche said, which is well under the automaker’s mid-term target of 17-19%.
Porsche didn’t indicate what new gas and plug-in hybrid models are coming. However, Porsche is rumored to be considering the development of a new gas version of its top-selling Macan, where previously none was planned. It’s possible the automaker could also do this with the 718 Boxster and Cayman in the future, which are currently slated to go the electric-only route when a new generation arrives later this year.
2025 Porsche Taycan
The need to develop new gas and plug-in hybrid models comes after Porsche, in 2024, abandoned its plan for EVs to make up 80% of sales by 2030. Due to the current slowdown in growth for EV demand, particularly in the luxury sector, Porsche now plans to continue offering gas engines well into the next decade, including V-8s.
Sales of Porsche’s debut EV, the Taycan, dropped 49% to end 2024 at just 20,836 units. However, part of the reason for the slowdown can be attributed to buyers waiting for the refreshed Taycan that was unveiled during the year.
Porsche’s sales also tanked in China, which is the biggest market for EVs. Porsche sold 56,887 units in China in 2024, down 28%. This was the primary contributor to a drop in worldwide sales in 2024 by about 3%, to 310,718 units. As a result of the poor performance, Porsche on Feb. 1 announced it was in talks with its finance and IT chief, Lutz Meschke, and its sales and marketing chief, Detlev von Platen, about early termination of their contracts.
