Porsche to Make More Money From Electric vs Gas in Two Years: Exec
Lutz Meschke, Chief Financial Officer at Porsche, believes electric vehicles (EVs) have the potential to be more profitable for the luxury automaker than gas-powered cars — reports Automotive News.
Meschke said during Porsche’s capital markets day earlier this week that the company’s EV margins will reach the same level as those of its combustion engine-powered vehicles in two years, and will continue growing from there. Porsche is planning to go public with an initial public offering in the fourth quarter of this year.
As part of its efforts to go public, Porsche has outlined a roadmap to grow its return on sales from 16% last year to more than 20% in the long term.
The Volkswagen subsidiary also believes there is more room to raise EV prices since customers are willing to pay more for new technology. In addition, the EV market has a surplus of demand at this time.
40% of Porsche’s European sales in 2021 were either battery electric vehicles or plug-in hybrids. Company leadership expects eight in ten Porsches sold by 2030 to be electric. Porsche also sees EVs making up half of all luxury cars sold in 2031.
“Our target is to selectively expand higher-margin segments and to leverage electric-vehicle pricing opportunities,” said Porsche CEO Oliver Blume.
Porsche is far ahead of other luxury carmakers in electrification efforts since it has already brought its Taycan EV to market. The company has seen incredible demand for its all-electric Taycan, selling more units of the EV in 2021 than it did its previously best-selling gas-powered 911 sports cars.
Porsche currently plans on debuting an all-electric Macan SUV sometime in 2024 and has a two-seater 718 EV in the works for farther down the line. The company is also developing a new electric luxury SUV, but not much is known about it beyond that it will be manufactured in Leipzig, Germany.