The Electrification Era Is a Nightmare for Porsche

KatadataOTO – Chinese manufacturers are arguably the most popular in the era of electrification. Various models are offered, both BEV (Battery Electric Vehicle) and HEV (Hybrid Electric Vehicle).

But the main attraction is the price. Many electric and hybrid cars from China are sold at a cheaper price compared to other brands from Japan to Europe.

In fact, some are targeting the premium segment. For example, Xiaomi offers a high-performance electric sedan whose power competes with models in the class of Tesla and even Porsche.

One luxury automotive manufacturer that is struggling in the EV era is Porsche.

Photo : Porsche Newsroom

The German brand was recently reported to be delaying the launch of its newest electric-powered products such as the EV version of the 718 Boxster and the Cayman replacement.

Porsche faces many challenges, such as import tariffs and stiff competition for EVs (Electric Vehicles) in China.

According to analysts, one of the obstacles for Porsche is an electrification target that is too aggressive and inflexible.

Another strategy Porsche could have implemented is to transition to PHEV (Plug-in Hybrid Electric Vehicle) first before fully switching to BEV models.

“Because the transition to BEV is behind the initial schedule, Porsche now has to develop additional ICE models and face the situation in China as well as the uncertainty of US export regulations,” said Fabio Holscher, an analyst at Warburg Research, quoted from Insideevs, Friday (16/05).

It is even known that as of February, Porsche laid off 1,900 workers in its research and manufacturing divisions in Germany.

In China, high-performance electric cars like the Xiaomi SU7 Ultra and Yangwang U9 are offered at a cheaper price and are a big problem for Porsche.

Chinese Brands Are Getting More Aggressive

Not only in their home country, but various Chinese manufacturers in Indonesia are also becoming more aggressive in introducing their electrified vehicle lineups.

Besides hybrids, they are also starting to bring in PHEV lineups, which were previously known for their high prices in the country.

Photo : Courtesy

Most recently, Chery introduced a seven-seater SUV with hybrid technology priced at Rp 499 million, especially for the first 1,000 buyers.

This certainly becomes an attractive alternative, especially considering the price of PHEVs in Indonesia right now. The Toyota RAV4 GR Sport PHEV and the Mazda CX-80 PHEV are now sold for over Rp 1 billion.

BYD has also signaled the arrival of its PHEV technology. This adds another challenge for many other manufacturers, including premium brands in the country, as they also have to compete on price.