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Porsche has slashed its profit targets and said slowing demand for its electric vehicles and intensifying competition in China will drag on sales this year.
The company said it was now aiming for a profit margin of 15 to 17 per cent, down from a previous medium-term target of 19 per cent, after posting a margin of 14 per cent in 2024.
Porsche said the margin this year would be between 10 and 12 per cent.
The luxury-car maker, which is part of the Volkswagen group, said on Wednesday that operating profit had fallen by more than a fifth to €5.6bn last year, from €7.3bn in 2023.
Revenues were flat at €40bn as the number of vehicle deliveries slipped 3 per cent to 311,000. Deliveries of its all-electric Taycan fell sharply, dropping 49 per cent in the year.
The Stuttgart-based automaker shocked investors earlier this year when it revealed that sales in China had fallen by 28 per cent in 2024.
Porsche said last month that it would plough €800mn into combustion engine vehicles and hybrids this year, rebalancing its product line away from electric vehicles, and cut thousands of jobs in an effort to boost profitability. But it warned on Wednesday that it expected “market conditions to remain very challenging and for competition in China to intensify”.
Porsche’s shares fell 3 per cent at Wednesday’s open.
