Porsche Is Rolling Back Its EV Sales Goal
Porsche is scaling back its all-electric ambitions. The company previously announced plans for EVs to make up 80% of its sales by 2030. Now it’s not so sure about that. It told Reuters in a statement that it was prepared to meet that goal if and only if customer demand for EVs grew.
“The transition to electric cars is taking longer than we thought five years ago,” Porsche said in the statement to Reuters. “Our product strategy is set up such that we could deliver over 80% of our vehicles as all electric in 2030 – dependent on customer demand and the development of electromobility.”
Delayed EV Plans
Automakers were a bit too optimistic about their EV timetables. While many made big pronouncements about upcoming pivots to EV-only sales by 2030 or the like, many have rolled back those goals in the face of a tumultuous regulatory environment, difficulty building desirable EVs that are profitable and inconsistent consumer demand.
The company took the bold step earlier this year of replacing its internal-combustion best-selling Macan with an EV in Europe and other markets. While the gas-burning, previous-generation Macan will soldier on temporarily in the U.S., it was a big swing for the company’s highest-volume product. But that happened during a year when the pace of EV sales growth has slowed—though sales themselves have not fallen here. It also comes as sales of the Taycan, Porsche’s first and only other EV, are starting to taper. The updated Taycan is the fastest-charging EV we’ve ever tested, but we’ll have to wait until the end of the year to see if Porsche can renew consumer interest.
Porsche isn’t alone in its effort to walk back ambitious EV adoption targets. Audi, a sister brand, is considering shuttering the plant that builds the Q8 E-tron. Mercedes has walked back its ambitions, too. It initially planned to phase out internal-combustion by 2030. That’s no longer happening. Ford and General Motors have lowered their expectations, too. Volkswagen delayed plans to bring the ID.7 here, and the long-delayed ID.Buzz is still not available in the U.S.
Everyone seems to have been optimistic about the pace of EV adoption. Two major factors are playing into that. The first is that the first wave of EV consumers were early adopter types, willing to make sacrifices for a technology they were excited about. The next wave is a more normal pool of buyers, who are looking for good deals, uneducated about EVs and nervous about having to learn how to live with one. They’re less likely to have home charging, too, and even those with EV experience struggle with lackluster public charging infrastructure.
At the same time, automakers have had to adjust to an ascendant Chinese EV industry. It not only imposes direct problems for them—brands like Volkswagen and GM were selling big in China—but indirect ones as well. New tariffs mean companies like GM, Volvo and others can’t bring Chinese-made EVs to the U.S., and the lack of Chinese sales means it’s harder to amortize costs over larger volumes of vehicles. Plus automakers have been forced to retool supply chains to cut out Chinese battery parts, while foreign automakers are working feverishly to onshore production of EVs.
It’s a messy, expensive, brutal time to be running an automaker. Just a few years ago, everyone was excited, and perhaps naive about how hard this transition would be. Now, the reality is setting in. That doesn’t mean the EV transition is doomed. It just means it may take longer than we first thought.
Via Electrek.
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