At Porsche’s recent annual shareholder meeting, concerns were raised over the company’s aggressive push towards battery-electric vehicles (EVs) amidst a global market slowdown. Despite a plan for plug-in vehicles to comprise over 50% of total sales by next year, some shareholders expressed skepticism, citing a current downturn in demand in various markets.
Moritz Kronenberger from Union Investment suggested Porsche should focus on boosting margins and cash flow by selling more combustion-powered models until EV demand rebounds. This comes as Porsche’s shares have dropped by more than a third in the past year, with mounting pressure in China due to declining EV sales.
Porsche CEO Oliver Blume defended the company’s strategy, particularly highlighting the upcoming all-electric Macan as a pivotal model. Blume emphasized its performance and hinted at further electric versions of popular models like the 718 Boxster and 718 Cayman, stating that the current refresh plan will pay off in the long term.
Ingo Spiech from Deka Investment also expressed doubts about Porsche’s EV commitment, suggesting that the company should be prepared for lower volumes instead of succumbing to market pressures to reduce prices.
Despite these concerns, Porsche aims for all-electric models to make up more than 80% of its sales by 2030, according to Bloomberg. The relationship between Porsche and its Chinese dealerships has also strained, with some dealers resorting to price cuts and experiencing financial losses to meet sales targets amid a 15% sales drop in China last year.
