Major Vehicle Price Hikes Planned by Porsche

•    Porsche will bring in significant price hikes for its vehicles.

•    The brand's future electrified models won’t be exempt from the inflationary pressure.

•    Expect electrified Porsches to cost 10% to 15% more than their gas-powered counterparts.

•    The anticipated price hikes will start to show up mid-year.

Porsche will significantly increase the price of its vehicles starting in the middle of this year, this in order to maintain its profit margins in the midst of a period of upheaval in the automotive industry. 

Electrification is expensive. We see it everywhere in the automotive sector, where prices have been rising systematically in recent years. 

Porsche's head of finance, Lutz Meschke, shared the news earlier this week during a company earnings conference call, as reported by the Autocar outlet. 

Porsche Taycan GTS | Photo: V.Aubé

The price increases won’t be sparing electric models; the electric versions of the Macan, 718 and Cayenne planned for the next few years will get a price bump. Meschke said the electric variants of these vehicles will cost 10 to 15 percent more than the gasoline-powered versions. We know that both types of powertrain will be in the company's product lineup for a few years. 

As for the timing of the arrival of these three electric models, speculation is 2024 for the Macan, 2025 for the 718 Boxster and 2026 for the Cayenne. In 2027, Porsche plans to launch a new electric SUV, this time with a third row of seats. 

If the company can afford to raise its prices, it's because demand for them remains very strong. Also, the high resale value of Porsche vehicles softens the long-term blow for buyers. 

Porsche Macan | Photo: Auto123

Let's face it, Porsche's typical clientele is quite well off financially. And since the quality is there, most of them will be ready to accept the proposed price increases. 

The irony is that in 2022, Porsche had a record year in terms of sales and operating profit. The latter increased from 16 to 18 percent between 2021 and 2022. The company wants to keep that between 17 and 19% in the current year, before pushing it up to more than 20 percent thereafter. 

The goal, in addition to higher profits, is to plan ahead, too, in a context where the supply chain is not yet functioning on all cylinder and inflation refuses to be wrestled to the ground just yet.