Porsche Sales Decline on the Horizon, Yet New Gas and Hybrid Models Are on the Way | Carscoops

      Porsche's investment in electric vehicles has proven to be a risky endeavor, prompting the company to stabilize its position.

      Porsche has announced intentions to introduce new models featuring plug-in hybrid electric vehicles (PHEV) and traditional combustion engines.

      Additionally, the company plans to expand its Sonderwunsch and Exclusive Manufaktur programs.

      Last year, Porsche experienced a 3% drop in sales and anticipates another decline in 2025.

      The anticipated electric vehicle breakthrough did not materialize as expected, leading many manufacturers to either postpone or abandon plans for exclusive electric offerings. As a result, several companies are now rushing to produce new models with traditional combustion engines or hybrid powertrains.

      Porsche has joined this trend, recently stating, “We will develop new combustion-engined derivatives [of our EVs] to respond to customer demand.” Thus, it is not surprising that Porsche announced the “expansion of the product portfolio to include additional vehicle models with combustion engines or plug-in hybrids.”

      While Porsche has not provided detailed information, it indicated that these adjustments aim to enhance profitability in the short to medium term. This initiative also involves a renewed emphasis on Porsche Sonderwunsch (special request) and Porsche Exclusive Manufaktur, both of which are lucrative programs focused on customization, and the company aims to maximize their earnings from these ventures.

      However, these initiatives will incur costs in addition to the high expenses already associated with vehicle and battery development. Porsche warned that these actions will “lead to significant additional expenditures,” with potential impacts for the 2025 financial year reaching €800 ($826) million.

      To make matters worse, Porsche is forecasting a “market-induced” sales decline for 2025. The automaker projects sales revenues ranging between €39-40 ($40.2-41.3) billion for the year.

      Deliveries dropped by over 9,500 units last year, with the company previously attributing this downturn to China’s “continuing challenging economic situation.” This situation has negatively impacted Panamera sales, which fell by 13%.

      Investors reacted negatively, and Porsche AG's stock closed down 6.45% at €55.94 ($57.78) per share in Frankfurt.