The brand redefines the concept of modern luxury, with an emphasis on exclusive products, electromobility, sustainability and social engagement
For the year 2022, Porsche has a turnover target of approximately 38 to 39 billion euros. At the same time, Porsche continues to focus on high-quality and exclusive products, electromobility and sustainability, combining the exciting history and DNA of motorsport with the future, to redefine the concept of modern luxury. The brand continues to grow from a strong position. The Stuttgart-based sports car manufacturer is benefiting from trends in global demand for exclusive, electrified luxury cars.
“Porsche is an iconic global luxury brand. We have cars that are 100% sporty and 100% luxury,” said Oliver Blume, Chairman of the Board of Directors of Porsche AG, at his Capital Markets Day at the company’s research and development center in Weissach.
“As a manufacturer of exclusive sports cars that benefits from the economies of scale of our partnership with the Volkswagen Group, we are in the right place in the luxury car industry. That translates into structural growth opportunities.” With its passion for design, performance and the highest quality, Porsche is now fulfilling the dreams of sports car enthusiasts around the world better than ever, explains Blume. He also announced that the product range would be expanded: “We are planning to add a new all-electric luxury SUV model to our attractive portfolio, which will roll off the production line in Leipzig. This will further expand our presence in the luxury market. We are targeting the higher margin segments and our aim is to capture new sales opportunities there.”
For the current fiscal year 2022, Lutz Meschke, Vice-Chairman of the Board of Directors of Porsche AG in charge of Finance and IT, offers ambitious prospects: Porsche forecasts a turnover of 38 to 39 billion euros, approximately and a profit margin between 17 and 18 percent . This is based on the expectation of a favorable exchange rate. In addition, the forecast assumes that economic conditions will not deteriorate and that there will be no additional disruptions in supply chains.
Porsche has set itself a long-term goal of achieving a sales margin of more than 20 percent. With this, the company aims to strengthen its position as one of the most profitable car manufacturers in the world. “In addition to our medium-term objectives, we are pursuing further growth potential, especially in terms of our profitability. Porsche can look optimistically to the future from a commanding position in the world of luxury,” emphasizes Meschke.
Porsche, like the rest of the industry’s companies, has experienced supply chain problems in the past three years, including the COVID-19 pandemic, the shortage of semiconductors and the war in Ukraine. During this period, however, Porsche benefited significantly from its strong relationship with the Volkswagen Group, its long-standing supplier ties and, most importantly, its high degree of flexibility and ability to adapt to challenging situations. Meschke: “We are closely monitoring our developments to be ready to respond and adapt to what is needed.”
The term modern luxury does not only apply to the products, but to the entire company. Meschke: “We see sustainability holistically, i.e. from an economic, ecological and social point of view. It is important for us to take our social responsibility and to be involved in that society.” The comprehensive understanding of sustainability is an integral part of Porsche’s strategy. In this regard, Porsche is setting itself particularly ambitious targets, including that more than 80% of vehicles delivered by 2030 will be electric. The next milestone on this path is the market launch of the 100% electric Macan. In addition, it is the intention of Porsche to work towards a net CO2-neutral value chain by 2030, including the use phase of future electric models. To this end, Porsche systematically promotes projects for the future.
Launching a new family of Porsche models always takes courage: great examples include the Cayenne (2002), the Panamera (2009), the Macan (2013) and, more recently, the first all-electric sports car, the Taycan (2019). . Oliver Blume: “The Taycan is 100% electric and 100% Porsche. This combination makes people enthusiastic. We continue our electric offensive and by the middle of the decade we aim to offer our mid-engine sports car, the 718, exclusively in all-electric versions.”
By following its strategy, Porsche was able to achieve new milestones in 2021, despite a challenging environment characterized by the ongoing COVID-19 pandemic and bottlenecks caused by semiconductor shortages. Last year it delivered more than 300,000 vehicles and generated a turnover of 33.1 billion euros. Both numbers represent all-time highs for Porsche. Deliveries of the Taycan alone more than doubled to 41,296 units in 2021. At the same time, Porsche has achieved high profitability, with Porsche AG’s operating profit increasing by 27% from 2020 to €5.3 billion (2020: 4, 1 billion euros). This represents a profit margin of 16%. Automotive EBITDA was 24.5 percent and net cash flow improved to nearly €3.7 billion (2020: €2.2 billion).
According to expert studies, the luxury vehicle market is expected to see solid growth in the coming years, with electric models and SUVs as the main drivers of such growth. That is why Porsche is active in market segments that indicate significant growth potential for the future.
“We are very well positioned to capitalize on these trends. Porsche plays a leading role in the sports SUV market and in the all-electric luxury car segment,” said Chief Financial Officer Meschke. “Although we are clearly positioned in the luxury car segment, we benefit from significant economies of scale,” adds President Blume.
Porsche’s product range is set against a very attractive backdrop: “Demand for our vehicles is high and the number of potential customers continues to grow,” says Lutz Meschke. Globally, the company is well positioned with Europe, North America and China contributing similarly to total sales. Going forward, Porsche expects its customer base to include younger and more diverse next-generation buyers. At the same time, the proportion of women in this client group is likely to increase. In addition to Europe and the Asia-Pacific region, the sports car manufacturer focuses primarily on the US and emerging markets for geographic expansion.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
