Porsche, the name which is synonymous with speed and luxury, is now trapped in difficulties. This famous German car company is facing a huge decline in sales, weak performance in large markets like China and increasing tariffs. But the most shocking thing? The company believes that its electric vehicle (EV) strategy is a big hand behind all this. Yes, the same strategy that was dreaming of making 80% electric vehicles by 2030, has now become the bone of the sore.
A few years ago, Porsche launched its electric car threadon in great enthusiasm. It was thought that this car would compete with Tesla. But the reality turned out to be something else. A recent report by Automotive News states that the sales of the dignity remained far away from hope. Especially in China, where people are looking for economical and high-tech EV, the glow of threads faded. An analyst even said that Porsche played a big bet in a hurry, and now he has to bear the brunt.
Talking about China, the market there is no less than a forest. There are companies such as Bivid and Tesla have cheap, magnificent trains. Porsche's thread may be a unique example of engineering, but its price and range disappointed Chinese customers. outcome? Porsche sales drastically fall. I remember, a few years ago, there used to be a line for every new car on Porsche, but now the situation has changed. The company is sweating to save its premium image.
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The condition of Porsche is also thin on the financial front. In the first quarter of 2025, the company's profit fell by 40%. Surprisingly, this decline came when there was a jump in the sale of electric vehicles. Then where is the problem? Actually, making electric vehicles is an expensive deal. The problems and increasing expenses of the supply chain over above grabbed Porsche further. This is the same as if you have a big dream, but the pocket is empty.
The condition of Porsche is also thin on the financial front. In the first quarter of 2025, the company's profit fell by 40%. Surprisingly, this decline came when there was a jump in the sale of electric vehicles. Then where is the problem? Actually, making electric vehicles is an expensive deal. The problems and increasing expenses of the supply chain over above grabbed Porsche further. This is the same as if you have a big dream, but the pocket is empty.
Some people say that Porsche tried to say goodbye to his real strength - ie petrol drunken vehicles - very soon. For example, Porsche 911 still runs on petrol and its demand is amazing. A friend of mine, who is crazy about cars, told me that the rhar of a car like 911 is the identity of Porsche. Perhaps the company should have paid more attention to the paths such as hybrid vehicles or e-fuel, which also saved the environment and also attract customers.
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Now the question in front of Porsche is what next? The company has admitted that its "just electric" plan was probably wrong. Now she is looking towards hybrid and e-fuel. Also, there is a preparation to bring new electric vehicles that are strong in price and performance. According to me, Porsche should walk a little slowly, because haste has already harmed.
Porsche's brand value and technical power is so much that it can come out of this crisis. But the next few years will be like tests for this. If the company does not take the right steps at the right time, then the loss will be not just money, but also of the magnificent image that Porsche has made in decades. And if all is right, then perhaps Porsche will not only return, but also create new history in the automotive world.