Porsche expects its EVs will be more profitable than its ICE cars in two years time

Porsche is in the midst of further electrifying its line up, and the famed Stuttgart-based sportscar marque anticipates that, in only two years, its EVs will be more profitable than combustion-engined vehicles.

Because they cost more to produce than cars with internal combustion engines, makers of electric vehicles sometimes do not make a lot of profit from them. This also explains why the majority of EVs cost more than equivalent ICE (internal combustion engine) cars. However, this is not the case for luxury manufacturers, who can charge more for their EVs without making them out of reach for their customers.

Porsche claims that customers are eager to pay more to get access to the newest technologies, including electric drivetrains.

By doing this, Porsche will be able to raise its EV profit margins without significantly impacting its sales. By the end of the decade, approximately half of the luxury car segment, according to Porsche's global prediction, will be made up of electric vehicles.

By 2031, the company hopes to outsell its competitors by selling 80% entirely electric Porsches.

Porsche Macan EV spy photo, Credit: motor1.com

“Our target is to selectively expand higher-margin segments and to leverage electric-vehicle pricing opportunities,” Porsche CEO Oliver Blume said.

For the record, The 911 is currently Porsche's most profitable model, but that is likely to change with the arrival of the electric Macan, which is anticipated to arrive in approximately two years, and that despite recent delays stemming from software issues.

With lithium prices likely to fall in the next years, automakers' margins on their EVs will naturally rise without raising their sale prices to consumers.

Futhermore, Porsche also reportedly confirmed plans for a larger new electric SUV that will slot above the Cayenne. It will be built in Porsche's Leipzig facility and is widely expected to carry a starting price of approximately US$85,000 - or approx. RM378,760.