Porsche's Electric Vehicle Plans Fall Through, Flagship SUV Set to Launch with Gasoline Instead | Carscoops

      Porsche has postponed the launch of new electric vehicles (EVs) due to a decline in demand and is reverting to its plans for combustion engines and hybrids.

      The high-end SUV set to be positioned above the Cayenne will now be unveiled exclusively with combustion and plug-in hybrid powertrains, lacking a fully electric version.

      Additionally, the dedicated EV platform has been abandoned and will be redesigned in collaboration with other Volkswagen Group brands.

      Porsche is experiencing a reality check, as ongoing sales declines and financial pressures have led to a significant reassessment of its product strategy. According to a statement released on Friday, the automaker is shifting focus back to combustion engines and hybrids, while delaying the launch of future electric models.

      “Today we have finalized the steps in the realignment of our product strategy,” stated Oliver Blume, CEO of Porsche and the Volkswagen Group. “We are currently facing significant changes in the automotive environment. Therefore, we are realigning Porsche comprehensively to adapt to new market realities and evolving customer preferences.”

      Rethink on Ultra-Luxury SUV

      One of the notable adjustments involves the ultra-luxury SUV, referred to internally as the K1, that is slated to be positioned above the Cayenne. This model, which was initially intended to be electric only, will now debut “initially” with combustion and plug-in hybrid options.

      Fans of the combustion-engine Panamera and Cayenne can rest assured. Both models will continue with combustion and hybrid variants for many more years, as Porsche has confirmed that future generations are now included in its long-term Cycle Plan, ensuring their availability in the lineup.

      Delays for Electric Models

      A significant change also pertains to Porsche’s other planned electric models. Although specific vehicles haven’t been mentioned (though it’s suspected some were meant to replace existing models like the current Macan EV), the company stated that the “delayed ramp-up of electric mobility” will postpone their market introductions.

      Porsche also announced that the development of a dedicated next-generation EV platform, originally scheduled for the 2030s, would no longer proceed as planned. It will be rescheduled and undergo a comprehensive redesign in coordination with other Volkswagen Group brands.

      “This is the company’s response to the considerably slower demand growth for exclusive battery-electric vehicles,” Porsche noted in its statement.

      Nonetheless, not all projects will be affected. Porsche confirmed that electric models already well into development, such as the upcoming Cayenne EV in both standard and coupe-SUV styles, are still on track, along with a future two-door sports car in the 718 lineup.

      Global Pressures Impact Business

      Beyond product planning, Porsche acknowledged that broader global challenges are impacting its outlook. Increasing import tariffs in the U.S., a declining luxury market in China, and slow adoption rates for electric vehicles are all contributing to the company’s cautious approach. The CEO admitted that the revised plan can only partially mitigate these obstacles.

      Delaying the new electric vehicle platform will necessitate depreciation and financial provisions, anticipated to impact operating profits in 2025 by as much as 1.8 billion euros ($2.1 billion at current rates), a factor not included in the company’s previous forecasts.

      For 2025, Porsche is maintaining its sales revenue forecast at 37 to 38 billion euros (approximately $40 to $41 billion). However, profitability expectations are much lower, with sales returns now projected at up to 2 percent, a significant decrease from the earlier forecast of 5 to 7 percent.