Porsche Shifts Focus Back On ICE, Expects Profits To Fall

The German performance carmaker is reassessing its EV plans as the demand is not as high as it anticipated

Porsche has officially announced a significant shift towards ICE and hybrid powertrains and models going forward. This became evident after the company announced its planned expenditure details for 2025. A sizeable chunk of its investment for this year is dedicated towards hybrid and combustion engines. That is a step which is bound to incur heavy losses including a decline in profit margins.

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Porsche Shifts Focus Back On ICE

Porsche shared some preliminary financial figures about this year on February 6, 2025. The biggest talking point about this report was the forecast to spend around a whopping $831 million on the development of hybrid and combustion engines. Remember this number even includes the cost for “battery activities” which is a critical component in hybrid engines and platforms.

The report mentioned that reverting to combustion engines should result in the profit margins falling to between 10% and 12%. Also, the German auto giant believes that it will achieve a sales revenue of $40-41 billion. Porsche already said last year that it would keep producing V8 engines for the Cayenne and Panamera beyond 2030.

In fact, in an interaction with Automotive News Europe, Porsche Chief Financial Officer, Lutz Meschke, said that the auto giant is looking to create a full hybrid or full combustion iterations of vehicles which were originally supposed to be fully electric. A key upcoming product from Porsche is the next-generation 718 with an electric heart. However, the company seems to be struggling with the planned launch this year.

Apart from that, the new Cayenne EV is also reportedly delayed for the launch. Finally, the new Macan EV, which is Porsche’s best-selling vehicle, could also get a combustion powerplant soon. Hence, all things point to the fact that Porsche now possesses a renewed focus on hybrid and combustion powertrains, at least for the mid-term future.

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Learn Electric Cars Says

The last year was a particularly tough period not just for Porsche, but for almost every carmaker. Most of them had to dial back their ambitious plans of going full-electric in the immediate future. Despite the EV sales rising consistently, it is often said that it is not increasing as per the expectations. That is an industry-wide phenomenon. Let us see how things pan out.