Porsche Taycan, Macan EVs on track for comparable ICE margins

As Porsche moves toward an electric future, the automaker aims to deliver the same margins with its EVs, if not more, than its ICE models. Porsche’s production manager Albrecht Reimold says the Taycan and Macan EVs are “on the right track” to achieve a comparable margin with its combustion engine models.

After its debut in 2019 as Porsche’s first all-electric model, the Taycan quickly emerged as one of its top-selling models.

Despite a six-week pause in production, Porsche Taycan deliveries totaled over 20K in its first year on the market, becoming its best-selling non-SUV in the US.

The following year, Porsche Taycan deliveries more than doubled to over 41K, outselling its renowned 911, Panamera, 718 Boxster, and 718 Cayman models. However, the sports carmaker ran into supply chain issues this past year, derailing the electric car’s momentum.

Taycan deliveries slipped 16% in 2022 to 34,801. The automaker attributed it to “supply chain bottlenecks and limited component availability,” particularly affecting the electric car.

The trend has continued, with only 9,151 Taycan deliveries in Q1 (-3% YOY) and another 8,840 in Q2, for a total of 17,991 through the first half of 2023 (-5% YOY).

Porsche Taycan Turbo (Source: Porsche)

In an interview with automobile weekReimold said, “It is true that we repeatedly had difficulties, especially with semiconductors.” He added, “That has stabilized and we are currently assuming that more units will leave the factory this year than in 2022.”

Porsche Taycan, Macan EV margins comparable with ICE

Reimold wants to increase Porche’s profit margin to 20% over the long term. Porsche’s return on sales was 18% in 2020 and 18.2% in the first three months of the year.

Porsche Taycan (Source: Porsche)

To do so, the production boss says technical development will play a key role. Reimold said the automaker is working closely with each new model to produce it at a reasonable cost. He added:

It depends on every component and every screw that we don’t have to use in the end. On the other hand, we are constantly working on improving our processes and implementing new technologies that increase our efficiency.

Porsche aims to “achieve a sustainable margin that is comparable to that of our combustion engines.” Reimold said:

We are on the right track here with the Taycan and the future Macan.

Although the Taycan and Macan EVs are headed in the right direction, Porsche says it still has a few steps with its planned luxury electric SUV called “K1,” slated to sit above the all-electric Cayenne and Macan models.

The K1 electric SUV will be the first Porsche seven-seater poised to compete against ultrapremium brands like Lamborghini, Bentley, and Rolls-Royce.

Dr. Michael Steiner, member of the executive board, research and development, at Porsche AG, in front of two camouflaged prototypes of the all-electric Macan (Source: Porsche)

Reimold claimed Porsche would “have to take a closer look at purely electric vehicles to see where we can become more efficient overall,” including batteries and utilizing digitalization to get the new SUV to where it wants.

Despite several automakers moving toward in-house production after Tesla, Porsche is sticking to its philosophy of having a lower level of vertical integration than others.

Reimold says he “will do everything with my colleagues” to ensure the Macan EV is delivered to customers in 2024. Following that will be the electric 718 in 2025, the Cayenne EV in 2026, and the new SUV slated to sit above the Cayenne in 2027. Porsche aims for over 80% of its sports cars to be purely electric by 2030.

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