Porsche Faces a Sales Slump

Porsche is reportedly facing a slowdown in sales. Global deliveries from January through September were down 7% year over year, with an especially steep 29% decline in the crucial Chinese market. Sales in Germany rose 8%, but North America was down 5%—not enough to offset the broader downturn.

The momentum of emerging Chinese EV makers such as BYD, along with Tesla, is proving hard to stop. A weakening Chinese economy has only added to the pressure.

The root of the problem is said to lie in Porsche’s model strategy. A few years ago, the company set an ambitious target: pure-electric vehicles would account for 80% of new-car sales by 2030. However, Porsche’s current leadership is reportedly scaling back that goal.

Porsche Rethinks Its Electric-Car Strategy

Porsche’s EV strategy does not appear to be unfolding as originally planned.

One reported factor is the delay in electrifying the Macan, a key volume model. At the same time, Porsche is said to have stopped investing in the development of its existing combustion-engine platforms. As a result, new EU cybersecurity rules mean that some combustion-powered models, including the 718, can no longer be sold without modifications.

According to German automotive publication Automobilwoche, Porsche is drawing up new plans across a range of areas, including development and production. One of the most closely watched developments concerns where the Taycan will be built.

Taycan Production Could Move to Leipzig

Despite receiving a facelift earlier this year, Taycan sales have fallen sharply. Porsche is reportedly considering moving production of the electric sedan to Leipzig, though the report says no decision has been made. Porsche has declined to comment.

Taycan production was integrated into the Zuffenhausen plant at enormous expense as an “iconic project for electric mobility.” The investment included an exceptionally long bridge that carries car bodies across the factory complex and over a road. Employees reportedly even gave up part of their pay to help fund the new facilities.

But demand is now said to be too low to justify renewing temporary workers’ contracts. As many as 1,000 contracts could reportedly expire.

Porsche Under Pressure to Revisit Its EV Plans

Porsche CFO and Deputy Chairman of the Executive Board Lutz Meschke reportedly supports building highly customized vehicles at the Taycan plant. Porsche currently produces only around 500 highly customized cars, but customers are willing to pay a premium for them—especially for an icon like the 911.

Porsche may need to revise its plans urgently not only for production, but also for vehicle development. For example, the electric version of the Cayenne SUV, scheduled for 2026, could be delayed. Like the electric Macan, it is expected to be based on the PPE platform.

There is also talk of a comprehensive overhaul of the combustion-engine platform. Until now, only modest updates had been planned. However, since the Audi Q7 and VW Touareg use the same platform—and all three models are built in Bratislava—Porsche may not be able to make that decision on its own.

The electric flagship K1, a seven-seat SUV based on the group’s SSP platform and scheduled to enter production in Leipzig in 2027, is also reportedly being considered for a “delay of several years.” A version with a combustion engine, which was not previously part of the plan, is said to be under consideration as well.

Porsche is under pressure to rethink its EV strategy, and its next moves will be closely watched. How the company balances the shift to electric vehicles with the continuation of existing models remains to be seen.