Another Major Automaker Is Rethinking Its EV Commitment

German automaker Porsche has admitted that the road to electrification is longer than anticipated. Previously, the brand was aiming for 80% of its sales to be all-electric by 2030, but it has since backed off this ambitious goal, reports Reuters.

With two new electric vehicles in the lineup (Macan Electric and Taycan), Porsche had hoped to reach this target in the coming years, but dwindling demand for EVs has forced the manufacturer to make a change. “The transition to electric cars is taking longer than we thought five years ago,” said Porsche in a statement.

Porsche EV Sales Aren’t As Strong As They Could Be

Sales of Porsche electric vehicles haven’t been as high as initially hoped, with varying levels of popularity in different markets. This is why we consider turning the hot-selling Macan into an EV a huge risk. While demand is reasonable in China, sales have slowed in Europe and are middling in the United States. 2024 year-to-date US sales of the Taycan have declined compared to last year, reflecting the larger stagnant EV market.

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YTD 2024 sales show Porsche has delivered 2,054 units of the electric sedan. Comparatively, the automaker sold 6,720 911s and 12,004 Macans during the same period. That being said, the arrival of the Macan Electric should see EV sales improve, with more affordable pricing and greater appeal due to the crossover body style.

Not The First Automaker To Change Its Tune

Porsche said that its product strategy would still allow it to reach its goal of delivering 80% electric vehicles by 2030 but noted that this is “dependent on customer demand and the development of electromobility.” The company added, “Our double strategy [ICE and EV] is more important than ever.” In recent months, several other automakers have made similar announcements.

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Porsche Feeling The Heat From EV Decline

A report from Germany claims that Porsche is winding down the production of its hot-selling EV.

A few years back, Toyota was criticized for its multi-faceted approach to electromobility, with many claiming the brand was unwilling to introduce electric cars. It would seem this was the correct approach, as brands such as Mercedes-Benz, General Motors, JLR, and Hyundai are all changing pace. GM, for example, will introduce plug-in hybrids by 2027, while Mercedes recently announced it would invest billions in ICE technology to keep existing engines and hybrid drivetrains as efficient as possible. While Audi is determined to achieve its EV goals, the Ingolstadt-based brand has implemented a new strategy that includes hybrids, plug-in hybrids, and EVs so as not to alienate customers.

Source:
Reuters