- Porsche is prepping its all-electric Macan 4 SUV but concerns over stumbling demand for EVs at large remain a big worry.
Porsche Taycan is now nearly five years old. Back in 2019 when the Taycan emerged as the first-ever electric vehicle (EV) from the sportcar maker, the world of automobiles was quite different. Sales were picking up and the enthusiasm was palpable. But in today’s times, EVs are facing a big challenge with demand slowing, forcing Porsche investors to reportedly put pressure on the company to go easy with its EV strategy.
Porsche is working on a second-generation Taycan EV model with the promise of offering an enhanced range and with the possibility of even better performance. While the sales figures for the model over the past few years have been encouraging – Porsche sold 7,716 units in 2023 – the times ahead are predicted to be fraught with obstacles for the global EV industry at large.
Bloomberg reports that investors are examining the global slowdown in demand for, and sales of, EVs, especially in China, the world’s largest EV market. Issues pertaining to sourcing of parts is also a big concern prompting investors to adopt a far more cautious approach than before.
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The report further highlights that Porsche CEO Oliver Blume is expected to face off against some very tough questions when he attends the company’s annual shareholder meeting on Friday, June 7. Blume has previously said that the new all-electric Macan 4 will accelerate Porsche’s performance in the EV space and he is likely to point to this once again during the shareholder meeting. Manufacturing of the all-electric Macan has already commenced and deliveries in select markets will begin later this year.
EVs search for power in troubled times
The rising concern among automotive companies about the slowing of demand for EVs is not just restricted to a handful of players. And Porsche may just be one of many to take foot off the throttle. Rivals like Mercedes-Benz Group AG have already dialled down on their EV ambitions while even formidable champions like Tesla are resorting to price cuts in many markets to inject a fresh lease of life into EV sales.
There is also some very fierce competition coming from Chinese companies like BYD, Nio and Great Wall Motor. While massive in their home market, many of these companies have rapidly expanded their global presence by offering compelling products at even more compelling price points. This has also led to talks of the European Union increasing tariff on imported EVs from China while the United States has already done so.
First Published Date: 07 Jun 2024, 13:13 PM IST