Porsche joins the EV race with four new models
Porsche unveiled two fresh electric vehicles (EVs) and two new hybrids as part of its big push in 2024, aiming for its most ambitious year of product launches to date. However, the shift to electrification is expected to impact profits, with the luxury brand projecting a 15% to 17% return on sales — down from last year’s 18% profit margin.
- The lineup includes the next generation of their all-electric Taycan model, which is considered a “success story” for the brand, posting an 11% sales increase last year.
- In China, a major EV battleground, Porsche doesn’t plan to lower prices like some competitors; instead, it prioritizes value over market share.
Bumpy road for EVs: Cost-conscious drivers are hesitant about the high price tags of EVs, leading to declines in shares of EV automakers like (-28% YTD), (-31% YTD), and (-47% YTD). However, established luxury automakers with strong reputations have found smoother paths into the EV and hybrid market. For instance, BMW, considered the best car brand, already operates a profitable EV business. Porsche aims to replicate this success by appealing to EV-curious drivers seeking that tried-and-true quality.
