Porsche Shares Slide as Carmaker Delays EV Rollout Amid Weak Demand and Rising Competition

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Osmond Chia, Getty Images

Porsche’s stock plunged more than 7% on Monday, extending losses triggered by the company’s warning last week that delays in its electric vehicle (EV) rollout will weigh heavily on 2025 earnings. Parent company Volkswagen also saw shares tumble more than 7%, as it pledged to spend billions of euros to overhaul Porsche’s product line.

The setback underscores mounting challenges for European carmakers, who are struggling to balance the costly transition to electrification with slowing consumer demand and intensifying competition from Chinese automakers.

In a statement issued Friday, Porsche slashed its projected profit margin from as much as 7% to as low as 2%, citing “US import tariffs, the decline in the Chinese luxury market, and the slowdown in the ramp-up of electric mobility.”

The company confirmed it will delay the launch of its newest EVs and extend production of combustion engine models, despite the European Union’s 2035 deadline to ban the sale of new petrol and diesel cars.

In a major strategic shift, Porsche said that an upcoming line of sport utility vehicles, originally planned to be fully electric, will instead debut with combustion engines and plug-in hybrid options. Current models such as the Cayenne SUV and Panamera sedan will continue to be sold with non-electric variants well into the next decade.

Porsche’s caution reflects broader strains in the European automotive sector. Luxury rivals BMW and Mercedes-Benz have also been cutting costs in recent months, seeking to maintain profitability in the face of shrinking margins.

Manufacturers have urged Brussels to ease ambitious emissions targets, arguing that the pace of regulatory change is unrealistic given weakening market demand and the high cost of electrification.

Chinese brands like BYD and XPeng are compounding the pressure. With China’s EV market locked in a price war, average vehicle prices have dropped by nearly 19% over the past two years, to around 165,000 yuan ($23,190). Many international automakers, including Porsche, have struggled to keep pace with these aggressive competitors.

The latest announcement marks a significant retreat from Porsche’s earlier ambitions. The company unveiled its first electric concept car, the Mission E, in 2015, positioning itself as a potential leader in high-performance EVs. But nearly a decade later, demand has cooled, forcing the carmaker to recalibrate.

“Exchanges and cooperation are a short cut to peace,” said Lee. “By gradually expanding inter-Korean exchanges and cooperation, we will pave the way for sustainable peace on the Korean peninsula.”

While Porsche insists it remains committed to electrification in the long term, the near-term pivot signals that hybrid and petrol-powered models will remain central to its strategy even as the industry moves toward a zero emissions future.