Porsche CEO Defends Petrol Comeback as EV Hurdles Mount Globally

Porsche is recalibrating its future, with CEO Michael Leiters confirming a renewed focus on petrol-powered models amidst significant hurdles for electric vehicles, particularly in crucial markets like China. This strategic pivot comes as the company grapples with slumping EV sales for its popular Macan, pushing for a more balanced offering that acknowledges current consumer demand. The luxury carmaker's adjustment is a direct response to a 40% drop in Macan electric sales in the first half of the year, contrasted with a 2% rise for its combustion counterpart, alongside a 32% decline in deliveries to China, a key market. Leiters, who took the helm in January, is steering Porsche away from an 'EV-only' push in some segments, planning a new combustion-engine Macan by 2028 and firmly stating that the iconic 911 will remain petrol-powered. This move reflects broader industry challenges like flattening global EV sales growth in major markets and concerns over cost parity between electric and petrol cars. Facing ongoing margin pressure, Porsche has initiated aggressive cost-cutting, including 9,000 job reductions by 2035 and significant asset sales. The company is also betting on e-fuels to keep internal combustion engines relevant, especially for its classic models and motorsport, leveraging the European Union's 2035 ban exemption for such sustainable fuels. All eyes will be on Porsche upcoming Capital Markets Day as Leiters outlines a more conservative outlook for China and a revised long-term strategy.