Wallstreetcn
2024.07.22 19:52
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Another European giant adjusts its course: Porsche abandons electric car sales targets

In March this year, Porsche's CEO stated the goal of achieving over 80% electric vehicle sales by 2030. However, Porsche announced this Monday that this is no longer a specific target for the company, stating that the transition to electric vehicles will take longer than anticipated five years ago

Another European automotive giant has adjusted its goals for expanding into the electric vehicle field.

Porsche, a subsidiary of Volkswagen, stated on Monday, July 22nd, that by 2030, electric vehicles may account for over 80% of Porsche's new car sales, but this is no longer the company's specific target. Porsche stated in its announcement that sales will depend on demand and the global development of electric vehicles. The statement reads:

"The transition to electric vehicles will take longer than we expected five years ago."

Just this March, Porsche's CEO Oliver Blume told analysts that Porsche will "stick to" the goal of electric vehicles accounting for over 80% of sales by the end of 2030.

Media reports point out that Porsche's abandonment of its electric vehicle sales target is due to lower-than-expected sales of electric vehicles in Europe and China, the world's largest automotive markets. Prior to Porsche's official announcement, car manufacturers including Mercedes-Benz, General Motors, and even Tesla adjusted their own electric vehicle targets due to lower-than-expected demand.

After Mercedes-Benz announced a slowdown in its "comprehensive electrification" pace at the end of February, an article on Wall Street News mentioned that as the most staunch supporter of electrification, Mercedes-Benz's strategic adjustment led many to believe that Mercedes-Benz was giving up on electric vehicles, and that Europe and the United States were collectively abandoning electric vehicles. However, Mercedes-Benz did not actually give up on electric vehicles. Even a powerhouse like Mercedes-Benz has to make choices between long-term development and short-term market changes.

Mercedes-Benz CEO Ola Källenius stated that due to the slower-than-expected popularization of electric vehicles, Mercedes-Benz will no longer plan to fully transition to electric vehicle sales in major markets before 2030. The core is that Mercedes-Benz is slowing down the pace of electrification. Källenius stated that this adjustment was made because "customers and the market determine the pace of transformation." He also expressed caution about the overall market in 2024, believing that the global economic situation and automotive market development are in a state of "exceptional uncertainty."