Porsche confirmed that it will impose “significant price increases” on its models when it releases the new model year vehicles in the middle of 2023 in a bid to keep its profit margins as high as 20 percent in the long term, as part of its Road-to-20 strategy.
The announcement was made by Porsche’s finance head Lutz Meschke during a call with analysts to reassure them that the German luxury brand can sustain and build on the strong operating profits it gained in 2022, which reached a massive €6.8 billion (approx. £6 million), with an 18 percent return.
“We will see significant price increases in the middle of the year for the new model year. That will help a lot to make sure we make strong group operating margins,” Meschke said, quoted by Autocar.
In addition to the price increases that will be applied across the entire lineup, Porsche said it plans on selling its upcoming all-electric Macan, 718 Boxster, and Cayenne at MSRPs that are 10-15 percent higher than the internal combustion engine variants, with the German automaker believing its customers would accept the higher prices.
“We have a very good foundation with a very strong brand and a very strong customer base that gives us the power to increase prices in very challenging times and in an intelligent manner,” Meschke said.
As of March 14, 2023, a base Porsche Macan starts at £50,800, so we can expect the upcoming electric variant of the Macan to have a starting price between £55,880 and £58,420, considering the 10-15 percent bump over the ICE version. But this hypothetical situation doesn’t take into account the yet-to-be-applied increases announced during the call with the analysts.
Gallery: 2024 Porsche Macan EV
Porsche wants its sales to be made up of 50 percent electric and plug-in hybrid vehicles by 2025 and by 2030 it wants 80 percent electric sales, so it’s in the middle of a massive spending spree to invest in new EVs, including a brand new SUV that will be bigger than the Cayenne and is slated to be unveiled towards the end of the decade, after the electric Macan, 718 Boxster, and Cayenne.
Additionally, the German company plans on updating its current-generation Cayenne SUV, which will continue to be sold alongside the upcoming electric version but won’t be related in terms of the underlying architecture. The overhaul will bring, among other things, a larger battery for the plug-in hybrid variant that will reportedly increase the battery-only range to 50 miles (80 kilometres), up from the approximately 25-30 miles (41-48 km) currently available (WLTP). The Panamera PHEV will also benefit from the updated battery pack, Porsche CEO Oliver Blume said on the same call.
Source: Porsche via Autocar