Porsche aims for growth in the luxury segment – 4Legend.com – AudiPassion.com

From a position of strength, Porsche continues to thrive: The Stuttgart-based sports car manufacturer is benefiting from global demand trends for exclusive, electrified luxury cars. For the full year 2022, the company aims for a turnover of between about 38 and 39 billion euros. At the same time, Porsche continues to focus on exclusive and high-quality products, electromobility and sustainability by combining its rich history and motorsport DNA with the future and redefining the concept of modern luxury.

“Porsche is a global and iconic luxury brand. We are 100% sports cars and 100% luxury. As an exclusive sports car manufacturer that benefits from the economies of scale of our partnership with the Volkswagen Group, we are at the heart of the luxury car industry. This translates into structural growth opportunities for us. », said Oliver Blume, Chairman of the Board of Porsche AG, on Monday during his Capital Markets Day at the company’s research and development center in Weissach. With a passion for design, performance and the highest quality, Porsche fulfills the dreams of sports car fans worldwide more than ever. Blume announced that the product line would be expanded: “We plan to add a new fully electric luxury SUV model to our attractive portfolio, which will roll out of the production line in Leipzig. This will further strengthen our position in the luxury car segment. We are particularly targeting higher margin segments and thus aim to take advantage of new sales opportunities. “

Ambitious prospects
For the current financial year 2022, Lutz Meschke, Vice President and Member of the Board of Directors of Porsche AG with responsibility for Finance and IT, offers ambitious prospects: Porsche aims for a turnover of around 38 to 39 billion euros. euros and a return on sales of around 17 to 18%. This is based on the expectation of continued currency downturn. In addition, the outlook is subject to assumptions, such as no deterioration in economic conditions or further disruption of supply chains.

Porsche has also set itself the long-term ambition of achieving a return on sales of more than 20%. In this way, the company wants to consolidate its position among the most profitable car manufacturers in the world. “Beyond our medium-term goals, we aim for further growth potential, especially in terms of our profitability levels. Porsche can look to the future with optimism from an impressive luxury position.”points out Meschke.

Porsche, like its peers, has experienced supply chain problems over the past three years due to, for example, the Covid-19 pandemic, the lack of semiconductors and the war in Ukraine. But during this period, Porsche has benefited greatly from its strong relationship with the Volkswagen Group, its long-term relationship with its suppliers and, above all, its high degree of flexibility and its ability to adapt to situations. Meshke: “We follow developments closely, so we are ready to react and adapt if necessary. »

Porsche redefines modern luxury
The concept of modern luxury applies not only to the products, but to the entire company. Meshke: “We see sustainability holistically: economically, ecologically and socially. It is important for us to take our responsibilities and be socially involved.” A comprehensive understanding of sustainability is an integral part of Porsche’s strategy. In this context, Porsche sets itself particularly ambitious targets, including the ambition that more than 80% of its vehicles delivered by 2030 will be BEVs (electric batteries). The next step on this path will be the market launch of the all-electric Macan. In addition, Porsche’s ambition is to work towards a net CO2-neutral value chain by 2030, including a net CO2-neutral use phase for future BEV models. To this end, Porsche systematically promotes plans for the future.

Launching a new Porsche model family always requires courage: The best examples are the Cayenne (2002), Panamera (2009), Macan (2013) and most recently the first fully electric sports car, the Taycan (2019). Oliver Blume said: “Taycan is 100% electric and 100% Porsche. This combination excites people. We continue our electric offensive: In the middle of the decade, we want to offer our 718 mid-engine sports car as an exclusive all-electric. »

Structural growth opportunities
By executing its strategy, Porsche was able to achieve further milestones in 2021 – despite a very difficult environment marked by the current Covid-19 pandemic and semiconductor bottlenecks: delivery of more than 300,000 vehicles and revenue of 33.1 billion. Both are historic highlights for Porsche. Taycan deliveries alone more than doubled to 41,296 units in 2021. At the same time, Porsche achieved high profitability: Porsche AG Group’s operating profit increased 27% year-on-year to 5.3 billion euros (in 2020: 4.1 billion euros). This corresponded to a return on sales of 16%. The automotive industry’s EBITDA margin was 24.5%, and Automotive’s net cash flow improved to almost € 3.7 billion (in 2020: € 2.2 billion).

According to expert studies, the market for luxury cars is expected to experience robust growth in the coming years, with battery-powered electric cars and SUVs in particular being the most important growth drivers. Porsche is thus active in market segments that offer significant growth potential for the future.

“We are very well placed to take advantage of these trends. Porsche is a leading player in the sports SUV market and in the 100% electric luxury car segment.”said Meschke. “Although we are clearly located in the luxury car segment, we enjoy significant economies of scale.”added Blume.

New customer groups in sight
The Porsche portfolio is developing in a very attractive environment: “Demand for our vehicles is robust and the number of potential customers continues to grow.”, said Meschke. All over the world, the company is well positioned: Europe, North America and China contribute approximately equally to the total deliveries. Looking ahead, Porsche expects their customer base to include younger and more heterogeneous next-generation customers. At the same time, the proportion of women in this customer group is expected to increase. In addition to Europe and the Asia-Pacific region, the sports car manufacturer focuses mainly on the United States and new markets for its geographic expansion.

Photos: Porsche

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