Porsche wants to get more profit from the sales of its electric cars

porsche wants to generate a higher percentage of net profit through the sale of electric cars. This has been declared by the top leadership of the German firm in recent statements to its main investors. This can determine the launch of new electric models beyond those already expected for the coming years.

A few years ago, the heads of automobile companies already warned about the possible effects that large investments in the development of electric technology would have. Despite this, electric cars can generate a higher profit than the same vehicles equipped with thermal mechanics. Mercedes, for example, admitted a few months ago that its sales plan would focus on high-end and electric models in order to maintain (or increase) profits despite a lack of manufacturing supplies.

Porsche also hopes to take the path of electrification of its models, in addition to its own sustainability plan that most brands already have, because these can trigger a higher final profitability as the increase in their prices is more viable than in the case of models with thermal mechanics. This was stated by the CFO Lutz Meschke himself during his presentation at the so-called “Porsche AG Capital Markets Day” held on July 18.

The financier estimates that “the margins of electric vehicles will reach the same level as combustion models in the next two years. Once this has happened, customers will be willing to pay more for the new technology,” he stated. From Porsche they estimate that by the end of this same decade, 8 out of 10 models sold will be electrified, while by 2031, they expect electric cars to account for half of the luxury car market all over the world.

Porsche Macan 16
The electric futures of the brand will be more economically profitable.

Oliver Blume, CEO of Porsche, also sees this profitability plan for the next electric models as viable, since during his presentation he stated that “the objective is to selectively expand the higher-margin segments and take advantage of the price opportunities of electric vehicles.”

However, the German firm is preparing to launch its initial public offering during the fourth quarter of this year, so these statements could be taken as a declaration of intent in order to become an even more profitable brand in the coming years. for your investors.

The current car market is in an unstable phase, as manufacturers are opting for the manufacture of more profitable models to alleviate the lack of supplies. However, many brands still do not know what will happen once this market stabilizes, with a firm supply chain, more standardized vehicle production and an even more decisive transition towards full electrification of the fleet.

This could lead manufacturers to lower the prices of their electric vehicles for sale, which will mean a lower profit margin per registered model in exchange for a greater number of units sold. Therefore, if this forecast comes to pass, the plans previously described by the Porsche directive could vanish.

Currently, the most profitable model for Porsche is the 911. This could change drastically with future electric models to come, such as the electric Porsche Macan that will arrive in 2024, or the large luxury electric SUV that has recently been confirmed.

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