Porsche delays key EV platform and reverses electric strategy

The luxury brand has put its ambitious electric vehicle plans on hold, citing a drop in demand in key markets and the need to focus on traditional models

Porsche delays key EV platform and reverses electric strategy

Porsche has reversed its ambitious plans to become a primarily electric brand, scrapping its target for EVs to account for more than 80% of its sales. The company has announced it will delay the development of its planned high-tech electric SSP Sport platform until “well into the 2030s.”

The decision comes as the brand has “seen a clear drop in demand for exclusive battery-electric cars,” according to Oliver Blume, CEO of both Porsche and the wider Volkswagen Group. The retreat from its electric-first strategy will see the brand return to combustion engines for the Macan replacement and extend the lifespan of the Cayenne and Panamera into the next decade.

The change in direction has come at a significant financial cost. Porsche has had to write off €1.8 billion (£1.6bn) from the decision to bin the SSP Sport platform, on top of a €1.3bn (£1.1bn) write-off earlier this year. The company is now forecasting net profit margins of just 2% this year, a sharp drop from 18% in 2023.

Analysts have expressed concerns about the company’s valuation. Patrick Hummel, lead automotive analyst for UBS, said: “Investors might increasingly look at P911 [Porsche’s stock ticker] as a cyclical premium car company rather than a highly profitable luxury goods company.”

The delay to the SSP Sport platform will also have a knock-on effect on stablemate Audi, which was assisting with its development.

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