According to Porsche, it would be easier to increase the price of electric cars, and thus increase their profitability.
If the electric car is developing at high speed today, some manufacturers still have some fears. Especially on the cost that this may generate. Indeed, the training of mechanics could be very expensive for brands, as evidenced by Mercedes with its 1.3 billion euro training plan.
However, and conversely, this engine could also bring more money to brands. In any case, this is what Porsche thinks, as stated by Lutz Meschke, Chief Financial Officer on the occasion of Capital Markets Day, an event that took place a few days ago within the center of research center and development located Weissach.
Easier to raise prices
For now, Porsche has only one electric model, the Taycan, available in several engines and bodies, with the Sport Turismo station wagon and its more adventurous Cross Turismo version. However, the margin of this vehicle should soon be equivalent to that of thermal cars of the range, with an equality which would be reached in two years.
According to Lutz Meschke, relayed by our colleagues from Bloomberg, electric vehicles could be even more profitable over the years, because it would be easier to drive up the price. According to him, customers would indeed be willing to pay more to take advantage of new technologies.
If all the manufacturers do not communicate on this subject, our colleagues fromAutomotive News point out that Volvo’s electric vehicles generated a gross margin of 15% against 21% for thermal models, while they are on average 12% more expensive to produce. Which could lead to higher margin once the costs are lower. For its part, Porsche wishes to increase its market share of electric models, while the brand plans to sell 80% electric cars by 2030. The manufacturer also expects this engine to represent half of the luxury car market in 2031.
It’s a shame that Porsche wants to take the route of increasing profits with the switch to electric. We imagine that these declarations are not foreign to the proposed IPO of Porsche by the Volkswagen group scheduled for the end of the year. It is indeed necessary to reassure potential investors, who are cautious and who could push the German group to revise the valuation of the brand downwards, as reported by Reuters.
New electric models in preparation
As stated by Lutz Meschke, the brand’s goal is to grow in the most profitable segments and better take advantage of opportunities for price increases. This is in particular why the firm is preparing to launch a brand new electric SUV, which would adopt a very high-end positioning. Placed above the Cayenne in the catalog, it should in particular take up the technologies of the Mission R concept and especially its 900 volt architecture. This would in particular provide greater charging power than the Porsche Taycan, which has an 800-volt system.
But that’s not all. Indeed, the Stuttgart firm is also working on the future electric Macan, the launch of which should however take a little delay. Porsche, like the other brands of the Volkswagen group, is indeed also affected by software problems penalizing the entire company and delaying the launch of several models. Expected for 2024, it will be followed by an electric version of the 718, which will see the light of day a year later. If the brand will have to ban all thermal models from its range in 2035, in accordance with the European Commission’s desire to ban the sale of these, it still continues to believe in this engine. It is indeed continuing to develop its synthetic fuel, just like Lamborghini is also doing.
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