Porsche Adjusts Strategy to Increase Focus on Combustion Engines

The automaker cites weak electric vehicle sales and market challenges, particularly in China, as reasons for its pivot.

Porsche plans to invest heavily in developing new combustion engine and plug-in hybrid models, reversing its previous focus on electric vehicles.
The company had aimed for 80% of its vehicles to be fully electric by 2030 but is now scaling back this target due to low demand and high costs.
Sales of Porsche's electric Taycan model dropped by nearly 50% in 2024, with significant challenges in retaining value compared to combustion-engine vehicles.
China, Porsche's largest market, saw a 28% decline in sales in 2024, attributed to economic difficulties and reduced demand for electric vehicles.
The strategic shift includes a costly measures program, expected to reduce Porsche's operating margins in 2025 to 10-12% from 14-15% in 2024.