Porsche expects that, within two years, its electric cars will be as profitable as its conventional cars, and that within five years, its electric cars will prove even more profitable.
Speaking at the company’s capital markets day, chief financial officer Lutz Meschke said that Porsche expects the margins on electric cars will equal and then surpass the margins on gas-powered cars as consumers grow more willing to pay for battery-powered vehicles, Bloomberg reports.
Until recently, automakers had lamented the thin profit margins on electric vehicles, which are more costly to manufacture and have historically held less appeal for consumers. Now, with EV manufacturing facilities scaling up and consumer interest on the rise, things are starting to change. “There are even signs that the EV business could be at least as good as the business with the conventional cars,” Herbert Diess, CEO of Volkswagen Group, said in March.
Porsche expects that EVs will account for roughly half of the luxury car market by the end of this decade. The German automaker is aiming for 80 percent of its sales to be fully electric by 2031.
Currently, Porsche offers one fully-electric model, the battery-powered Taycan sedan and its variants, which outsold its flagship 911 sports car last year. It will soon add a battery-powered version of its Macan compact SUV to its lineup, and it has announced plans for a new, full-size battery-powered luxury SUV as well.
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