Because of the significant investments made by the company in the research and development of new electric vehicles, it will be necessary for the corporation to raise prices in order to keep those outstanding profit margins.
According to sources from Autocar, Porsche has stated that it intends to reveal intentions to raise the cost of its EVs in 2023 in order to retain its strong earnings.
During a call with investors to discuss profits, Lutz Meschke, the company’s chief financial officer, stated the following: “Beginning around approximately midway through the year, there will be sizeable price hikes associated with the next model year. That will be a big assist in ensuring that we maintain healthy operating margins across the firm.”
These price increases will include the impending release of electric versions of the Porsche Boxster, Macan, and Cayenne models, each of which is expected to be priced 10-15% more than its ICE-powered equivalent.
Even the Porsche with the lowest starting price tag is not exactly inexpensive in our estimation. The starting price of a Macan is currently $57,500, and the price of the electric version will be even higher. Despite this, Meschke is sure of himself that clients will be understanding of these price hikes.
He continued by saying, “We have a very solid foundation, with a very powerful brand and a very powerful customer base, which provides us with the ability to raise prices during extremely difficult times and in an astute manner.”
Yet, the price increases will not be unreasonable or unwarranted in any way. The Porsche Cayenne is going to get a significant makeover very soon that will bring about unfathomable benefits.
Plug-in hybrid vehicles, for instance, are going to get a larger battery pack, which will result in an improvement in the electric range. It is anticipated that the Panamera will also receive the same improvement.
Porsche’s goal is to have electric cars and plug-in hybrid electric vehicles account for fifty percent of the company’s sales by the year 2025. This percentage will rise to 80% by the year 2030.
Because of this, the automaker has made significant investments in the creation of new electric vehicles, which has resulted in a higher level of spending on research and development than the automobile manufacturer had hoped for at the time.
“We have set an extremely lofty target for ourselves in terms of the group return on sales, which is between 17 and 19 percent in the middle of the term. Because of this, we have determined that we need to achieve parity between BEVs and ICEs as quickly as possible; otherwise, this forecast won’t be accurate.” Meschke also noted that.
The Taycan is the sole electric vehicle (EV) that Porsche offers at this time. In spite of the prohibitive cost, it contributed more than 10% to Porsche’s overall revenue in the United States over the previous year.
Unsurprisingly, the Porsche Macan was the market leader in 2023, selling 23,688 units to satisfied customers. The introduction of an electric version will undoubtedly broaden the brand’s appeal and contribute significantly to Porsche’s outstanding sales performance.
To complement the Macan EV, Porsche is developing a battery-powered version of the Boxster that keeps the iconic lines of the original but takes it into the present with an electric powertrain.
Porsche maintains that the car will retain a mid-engined feel through creative packaging and the application of lessons acquired from the Mission R concept.
