The automotive industry is currently in an era of huge transformations and the process is not going to stop anytime soon. Many automakers are rethinking their strategies and investing billions of dollars in electric vehicle technologies, but (most of them) have yet to achieve decent margins selling electric vehicles. One of the major players in the electric vehicle sector, however, believes that this point will be reached fairly quickly.
Porsche Chief Financial Officer Lutz Meschke spoke at Porsche’s Financial Markets Day last week and said the Stuttgart-based company expects to achieve parity between margins for electric vehicles and those for ICE-powered models in about two years. In a period of about five years, Meschke expects electric vehicle margins to increase, as customers are happy to pay more for new technologies.
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According to Porsche’s global forecast, about half of the luxury car segment will belong to electric vehicles by the end of the decade. The automaker wants to be ahead of the competition and sell around 80 percent of all-electric Porsches by 2031.
“Our goal is to selectively expand higher-margin segments and take advantage of EV pricing opportunities,” Porsche CEO Oliver Blume said, adding that the company is aiming for a higher sales return. 20% against 16% last year. However, the combustion-powered 911 remains Porsche’s most profitable model, beating out the Taycan electric vehicle.
So far, Porsche has only offered one purely electric model, the Taycan in its various versions. Very soon, a zero-emission version of the Macan will join the lineup, although it has been delayed due to software issues the Volkswagen Group is currently experiencing. Going forward, Porsche wants to be solely responsible for the software in its cars, but the Macan EV is now not supposed to arrive until 2024.
Another all-electric Porsche will come soon after and take the form of a larger, more luxurious SUV. It will be built in Leipzig and will have a starting price of around $85,000.
The automotive industry is currently in an era of huge transformations and the process is not going to stop anytime soon. Many automakers are rethinking their strategies and investing billions of dollars in electric vehicle technologies, but (most of them) have yet to achieve decent margins selling electric vehicles. One of the major players in the electric vehicle sector, however, believes that this point will be reached fairly quickly.
Porsche Chief Financial Officer Lutz Meschke spoke at Porsche’s Financial Markets Day last week and said the Stuttgart-based company expects to achieve parity between margins for electric vehicles and those for ICE-powered models in about two years. In a period of about five years, Meschke expects electric vehicle margins to increase, as customers are happy to pay more for new technologies.
14 Pictures
According to Porsche’s global forecast, about half of the luxury car segment will belong to electric vehicles by the end of the decade. The automaker wants to be ahead of the competition and sell around 80 percent of all-electric Porsches by 2031.
“Our goal is to selectively expand higher-margin segments and take advantage of EV pricing opportunities,” Porsche CEO Oliver Blume said, adding that the company is aiming for a higher sales return. 20% against 16% last year. However, the combustion-powered 911 remains Porsche’s most profitable model, beating out the Taycan electric vehicle.
So far, Porsche has only offered one purely electric model, the Taycan in its various versions. Very soon, a zero-emission version of the Macan will join the lineup, although it has been delayed due to software issues the Volkswagen Group is currently experiencing. Going forward, Porsche wants to be solely responsible for the software in its cars, but the Macan EV is now not supposed to arrive until 2024.
Another all-electric Porsche will come soon after and take the form of a larger, more luxurious SUV. It will be built in Leipzig and will have a starting price of around $85,000.