Porsche will continue to develop cars with combustion engines

The plan to produce only electric cars, at least for the next few years, has finally been scrapped.

Photo by: Porsche

By: Massimo Grassi

Feb 8, 2025 at 5:36am ET

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Electric Porsches exist and new models will be added in the future, starting with the battery-powered Cayenne. However, we now know that the Prancing Horse will also continue to develop and produce internal combustion engines for use in pure combustion cars or with plug-in powertrains.

This is a clear change of strategy, given the difficulties - not only for Porsche - of winning over motorists with purely electric models. So what will happen now?

The weight of a choice

Let's start with a certainty: the Porsche 911. The Zuffenhausen icon will retain the internal combustion engine for many years to come. While the company used to stress the difficulty of making such a car electric, with the revised strategic plan we can rest assured. Sure, there is the hybrid 911 - the new GTS - but the six-cylinder boxer remains.

And the 718 family? In the coming months, the Boxster and Cayman will make their debut as all-electric sports cars. Models that have been and are still being discussed, although they are facing development problems due to the crisis at Northvolt, the company that produces the batteries for the two small sports cars. Of course, the versions that have now been withdrawn cannot be brought back because they do not comply with the EU regulations Unece / R155 and R156. Will Porsche reconsider and update them, keeping the cabriolets and coupés with internal combustion engines alive?

The electric Porsche Boxster is expected to arrive during 2025

Things are more complicated for the Porsche Macan. After Autocar reported that the mid-size SUV - now fully electric - was about to get a petrol engine, the company rushed to officially deny it. The PPE platform does not allow internal combustion engines and it would require the PPC, which is designed for non-electric models.

We already know practically everything about the Porsche Cayenne: it will live on two separate tracks. The big German SUV will be both electric and plug-in hybrid. The former will debut in 2025, while the latter will be an evolution of the current version.

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First photos of the electric Porsche Cayenne

Photos by: Porsche

The GTS is the first hybrid in the history of the Porsche 911

A similar fate could be in store for the Porsche Panamera, with a separate development that will see a 100 per cent electric version emerge alongside a classic electrified version.

How much will it cost

The decision will have an impact on Porsche's margins, which are already under pressure. The company expects margins of between 10% and 12% in 2025, well below its long-term target of 20%. An additional €800 million will have to be budgeted for vehicle and battery development.