(Bloomberg) -- Porsche AG is abandoning its electric vehicle sales ambitions over lower-than-expected momentum for plug-in models in Europe and China.
While EVs could account for more than 80% of Porsche’s new-vehicle sales in 2030, it’s no longer the company’s concrete goal, the Volkswagen AG-controlled automaker said Monday.
“The transition to electric vehicles will take longer than we assumed five years ago,” Porsche said in a statement. Sales will depend on demand and how EVs develop across the world, it said.
Carmakers including Mercedes-Benz, GM and even Tesla have adjusted their EV ambitions because demand hasn’t met expectations. Germany’s manufacturers are particularly exposed to China, where a slowing economy is weighing on buying and local drivers gravitate to cheaper, locally made EVs. Luxury electric models haven’t been selling well in the biggest auto market.
Porsche Chief Executive Officer Oliver Blume told analysts as recently as March that Porsche would “stay true” to its target of over 80% EV sales by the end of the decade.
At the same time, the German company has repeatedly emphasized its flexibility to deal with fluctuating demand, with its plant in Leipzig capable of making models with a combustion engine, plug-in hybrids and fully electric cars on one production line.
©2024 Bloomberg L.P.
