Porsche has officially hit the brakes on its rapid shift to electric vehicles (EVs), acknowledging that the adoption of EVs isn’t accelerating as planned. With global sales of the Taycan, Porsche’s flagship electric sedan and wagon, down a staggering 50% year-over-year through the third quarter of 2024, the automaker is revisiting its strategy to ensure internal combustion engine (ICE) vehicles remain part of its portfolio.
ICE Investment is Back: Cayenne, Panamera, and More
Speaking with Automotive News Europe, Porsche’s Chief Financial Officer Lutz Meschke confirmed the company’s renewed commitment to gas-powered engines. Significant investments are being funneled into developing ICE versions of the Cayenne and Panamera, two of Porsche’s most profitable and iconic models.
“We are sticking with the combustion engine for much longer,” Meschke declared, adding that some models initially planned as all-electric may now include hybrid or ICE options. “We are currently in the middle of making conceptual decisions.”
This signals a monumental shift in Porsche’s approach, potentially extending the lifespan of V8 engines and hybrid drivetrains into the 2030s. However, the move isn’t without challenges, as many of Porsche’s upcoming models are designed to use dedicated EV platforms.
Future EVs Might Get Gas Counterparts
Meschke hinted that models like the upcoming “K1” SUV, a full-size three-row electric vehicle planned for the latter half of the decade, could be reimagined to include a gas or hybrid powertrain. This luxury SUV is intended to sit above the Cayenne, and a pivot to include ICE options could broaden its market appeal.
The 718: A Pivotal Decision Ahead
Fans of the 718 Boxster and Cayman will likely be paying close attention. The current generation of these beloved sports cars is slated to be replaced by EV-only models in late 2025. While development for these EV replacements is nearly complete, enthusiasts are holding out hope that Porsche might reconsider and keep a gas-powered version in the lineup. However, given the niche market for sports cars, a gas 718 might not make financial sense.
Macan’s Future: A Wild Card?
The previous-generation Macan, one of Porsche’s most successful models, is slated to phase out in 2026, with its replacement already launched as an EV-only crossover. The Macan has consistently been a top-seller for Porsche, trailing only the Cayenne in recent years. Some industry analysts speculate Porsche could either find a way to reintroduce a gas engine into the next-gen Macan or extend the life of its ICE predecessor through another refresh.
911: Hybridization But No EVs—Yet
Porsche’s crown jewel, the 911, remains steadfastly ICE-powered with no plans for a fully electric version this decade. However, the iconic sports car is slowly moving toward electrification, starting with the hybrid 911 GTS and the upcoming 911 Turbo Hybrid, set to debut in 2025.
Why the Pivot Back to Gas?
Porsche’s recalibration is fueled by multiple factors:
- Lagging EV Sales: The disappointing performance of the Taycan suggests that market demand for high-end EVs isn’t as robust as anticipated, even among Porsche’s affluent customer base.
- Consumer Preferences: Many Porsche buyers remain loyal to the visceral experience of driving gas-powered cars, making the transition to EVs a tougher sell.
- Profitability: ICE vehicles, particularly hybrids and performance models, continue to be highly lucrative for Porsche.
What’s Next for Porsche?
The company’s new direction reflects its intent to balance innovation with consumer demand, focusing on hybrid technology and extending the lifecycle of its ICE offerings. This approach could help Porsche maintain its dominance in the luxury and performance car market while ensuring a smoother transition to an electric future.
With the 911 remaining a gas-powered icon, the Cayenne and Panamera getting ICE updates, and potential hybrids of future EVs, Porsche is banking on a diversified lineup to navigate the complexities of a rapidly evolving automotive landscape.
