Porsche is set to significantly increase prices starting in the middle of the year to keep its margins up in light of some major headwinds, Lutz Meschke, Porsche’s head of finance and IT, said in an earnings call on Monday, Autocar has reported.
The price increases will also extend to planned electric versions of the Macan, 718, and Cayenne coming in the years ahead. Meschke said the new electric versions will cost around 10-15% more than comparable gas-powered versions that will remain on sale for a period, according to Meschke.
The electric Macan will arrive in the first half of 2024. The electric 718 will follow around 2025, and the electric Cayenne likely the year after that. Around 2027, Porsche will introduce a new flagship SUV with third-row seats, though this model will exclusively offer electric power.
Porsche has room to increase prices as demand for its vehicles remains high, and its typical customer is in a financially strong position, Meschke said on Monday during Porsche’s annual general meeting.
The automaker has just come off a strong 2022 that saw sales and operating profit reach record levels. The crucial number for Porsche is its operating profit, which grew from 16% in 2021 to 18% in 2022.
Porsche wants to maintain its operating profit between 17% and 19% in 2023 and in the longer term increase it to more than 20% in a strategy announced on Monday called Road to 20.
The price increases will help reach these targets while offsetting costs due to the heavy investment in EV technology, as well as key headwinds that Meschke described as a tight supply chain, rising geopolitical tensions, and ongoing inflationary pressures.
“With the Road to 20 we are making Porsche even more resilient and our brand stronger than ever,” he said. “And we’re going to take a fresh look at everything, from our product range and pricing to our cost structure.”