The company has spent a lot on developing new electric vehicles and will have to boost prices if it wants to maintain those impressive profit margins.
Porsche has announced intentions to raise the prices of its electric cars in 2023 as it plans to maintain its high profits, reports Autocar.
This is according to the company's Lutz Meschke, who told investors during an earnings call, "We will see significant price increases in the middle of the year for the new model year. That will help a lot to make sure we make strong group operating margins."
These price hikes will include the upcoming electric Boxster, Cayenne, and Macan models, which will reportedly be 10-15% higher-priced than their ICE-powered counterparts.
A new Porsche, even the most affordable model, isn't what we'd call cheap. A base Macan currently retails for $57,500, and an electric version will be pricier yet. However, Meschke is confident that customers will be accepting of these increases.
"We have a very good foundation with a very strong brand and a very strong customer base that gives us the power to increase prices in very challenging times and in an intelligent manner," he added.
The price hikes won't be unjustified, though. The Cayenne will soon receive an extensive facelift that will bring untold improvements. Plug-in hybrid models, for example, will receive a larger battery pack that will increase the electric range. The Panamera is expected to receive the same upgrade.
By 2025, Porsche is hoping that 50% of its sales will come from electric cars and PHEVs. By 2030, that figure will move to 80%. Therefore, the automaker has invested heavily in new electrified vehicles, which has raised research and development expenditure to a higher level than the automaker had hoped for.
"We set ourselves a very ambitious goal when it comes to group return on sales of 17-19% in the mid-term, and that means we have to reach parity between BEV and ICE as soon as possible, otherwise this forecast wouldn't work," remarked," Meschke added.
Currently, the Taycan is the only EV in Porsche's range. Despite the high price tag, it accounted for more than 10% of Porsche's total sales in the USA last year. Of course, the Macan led the field, with 23,688 examples finding homes in 2023. The advent of an electric version will only boost its appeal and strengthen Porsche's incredible sales performance.
As mentioned, the Macan EV will be joined by a battery-powered Boxster, which retains the classic profile of the old model but brings it into the future with an electric drivetrain. Despite this, Porsche says it will still drive like a mid-engined car thanks to clever packaging and lessons learned with the Mission R concept.
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