Following Stellantis, Porsche has become the latest automaker to rethink its electric vehicle strategy. The German giant is reworking its future model plans, reintroducing petrol engines to the next-generation 718 Boxster and Cayman sports cars. At the same time, its previously announced all-electric flagship SUV has been put on hold. The changes come as the German manufacturer reassesses its strategy amid slower-than-expected demand for electric vehicles and shifting global market conditions.
Responding to changing market realities
During its recent earnings call, Porsche executives cited a combination of slowing electric vehicle adoption, particularly in some key markets, along with softening sales in China and ongoing cost pressures as the main reasons behind the decision. The company described the adjustments as a response to “new market realities,” reflecting a need to balance its ambitious electrification goals with the practical demands of its global customer base.
Porsche had previously set a target for electric vehicles to account for 80 per cent of global sales by 2030, but the recent changes indicate a more cautious approach, retaining petrol and hybrid powertrains to meet broader market demand.
718 Boxster and Cayman: Petrol engines will stay
The next-generation 718 Boxster and Cayman were initially planned as fully electric vehicles. This latest development confirming combustion engines for the Porsche sports cars does come with a caveat – it will only be for the top-end variants. Also, these will likely feature six-cylinder boxer engines shared with the 911, making them fairly expensive.
This move allows Porsche’s GT-focused 718 models, including the GT4 RS and Spyder, to maintain their lightweight, performance-oriented characteristics, which would be more challenging with large battery packs. While entry-level 718 models may still feature electric powertrains, flagship versions are expected to rely on traditional internal combustion engines to meet customer expectations for performance and driving dynamics.
Production of the current-generation 718 Boxster and Cayman has already concluded in Australia, and global availability gaps are expected until the new models launch, with the electric variants likely appearing first.
Flagship SUV ‘K1’ delayed, not as EV
Porsche’s previously planned all-electric flagship three-row SUV, codenamed ‘K1’, will now initially launch with petrol and plug-in hybrid drivetrains, with the electric version delayed well into the 2030s.
However, the Cayenne EV remains on track for a late 2025 launch, sharing the Platform Premium Electric used in the smaller Macan EV, although it will feature a unique body and powertrain specifications. A third mid-size SUV is also part of Porsche’s publicly announced product roadmap, likely based on the Audi Q5 platform.
Balancing electrification with market demands
Porsche CEO Oliver Blume emphasised that the changes are aimed at maintaining a balanced portfolio of petrol, plug-in hybrid, and electric vehicles, offering customers a variety of options to suit their preferences. He described the approach as necessary to navigate a highly volatile automotive market, manage costs, and respond to regional differences in electric vehicle adoption.
Despite scaling back some electric vehicle plans, Porsche remains committed to electrification in select models, while ensuring that its performance and sports car heritage continue to define the brand in both traditional and emerging powertrain categories.
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