Porsche is shifting its focus, and its sales in China might have a lot to do with it.
Porsche recently walked back its plans to make the majority of its offerings all-electric by the end of the decade. As unlikely as it sounds, the brand’s sales in China may have had a direct impact on the brand’s shifting focus from EVs to producing new internal combustion engine (ICE) cars.
Porsche’s EV sales in China are contributing to the brand’s renewed ICE cars initiatives
Die-hard Porsche fans were divided by the news that Porsche was leaning into the electric age. In addition to rolling out the Taycan, its all-electric luxury sedan, Porsche announced that it would develop the Cayman and Boxster sports cars into electric-only affairs. However, the Zuffenhausen automaker announced that it’s changing course, and ICE cars are part of the equation. This might be good news for fans of the brand’s iconic flat-six engines.
Last year, Porsche pulled back its plans to turn 80% of its vehicle lineup into EVs by 2030. More recently, the German car marque announced that it plans to invest money in developing gas-powered cars and plug-in hybrid electric vehicles (PHEVs). The investments total nearly $830 million and include money for future battery technology in addition to ICE cars.
Now, the brand already acknowledged that the investments would cut into the profit margins for 2025. However, Porsche is still willing to make the move ahead of falling worldwide EV sales. Of Porsche’s largest markets, China may have had an important impact on the decision to shift focus.
Porsche sold 56,887 vehicles in the Chinese market in 2024. That figure represents a 28% decline from the previous year. Unfortunately for the German automaker, consumers in China are opting for domestic EVs like BYD’s vehicles at an increasing rate. Considering China is a top market for EVs, the hit harmed Porsche’s worldwide market performance.
What’s more, the brand announced that it was considering executive personnel changes amidst the dwindling sales. Specifically, Porsche said it would possibly terminate contracts with the company’s heads of sales and finance.
