FYI: Porsche is adjusting its electrification goals as demand for electric vehicles grows slower than anticipated. The company will still phase out some gasoline models like the Macan and 718 sports car.
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### Porsche to Delay Full Electrification Amid Slower EV Demand
In a strategic shift, Porsche has announced that its transition towards electrification is progressing more slowly than initially expected. Despite this, the company remains committed to converting most of its lineup to electric vehicles (EVs). The iconic gasoline-powered Macan and 718 sports car are set to be discontinued.
Porsche follows other automotive giants like Mercedes-Benz and Cadillac in adjusting its EV strategy due to slower-than-anticipated market growth. Initially, Porsche aimed for EVs to constitute 80% of its sales by 2030. However, a recent statement revealed that the company now ties its EV sales goals directly to customer demand and the broader development of the EV segment. Porsche emphasized that it could still reach its original 80% target by 2030 if demand increases.
### Industry-Wide Shift
Porsche isn’t alone in this reassessment. Mercedes-Benz announced earlier this year plans to continue offering gasoline-powered vehicles beyond 2030. Similarly, Cadillac, which also aimed for an all-electric lineup by 2030, indicated that it would likely extend the sale of gasoline-powered vehicles beyond the same deadline.
### Phasing Out Gasoline Models
Despite the slower pace of EV adoption, Porsche continues to phase out some of its gasoline models. The current 718 Boxster and Cayman will be replaced by electric versions next year, and the production of the gasoline Macan is expected to end by 2026. Notably, the electric Macan has been available for purchase since earlier this year.
### Challenges and Changes in the Market
The Taycan, Porsche’s first foray into the electric market, has seen a significant drop in sales, primarily because buyers are waiting for the refreshed 2025 model, launched in February. Sales of the Taycan plummeted by 54% in the first quarter of 2024 compared to the same period the previous year.
Additionally, Porsche appointed a new head for its China operations following a 33% decline in sales in the Chinese market during the first half of 2024. China, which once accounted for 25% of Porsche’s global sales in 2017, now represents about 19%.
### Conclusion
As EV adoption gradually gains momentum, Porsche remains adaptable, aligning its targets with market demand. While traditional gasoline vehicles will still be part of the lineup for the foreseeable future, the company is steadily moving towards a more electrified future.
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Donald Smith, Editor of Automotive.fyi
