Porsche to sell fewer cars as Chinese rivals force rethink – but there's good news for petrol-heads
Porsche has announced that it plans to sell fewer vehicles, but at higher prices, as the German supercar maker aims to regain profitability amid competition from China.
Porsche is planning to sell fewer cars, but at higher prices, in order to boost profitability amid stiff competition from Chinese automakers. The German supercar manufacturer aims to reduce its break-even production point to fewer than 200,000 vehicles per year, down from 280,000 in 2025. Porsche's new strategy, unveiled at its development center in Weissach, Germany, envisions a 20% increase in the average selling price of high-end models over the next decade.
The move comes as profitability plunged to an all-time low of 1.1% last year, prompting the company to cut costs and downsize its workforce by a quarter by 2030. CEO Michael Leiters expressed intent to create a "smaller but stronger and more resilient business," and emphasized continued investment in internal combustion engines and plug-in hybrids as global demand for pure electric vehicles slows.
Porsche will continue to produce battery-electric models like the Taycan, Macan Electric and Cayenne Electric, but the iconic 911 sports car will remain a gasoline-powered machine.
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