Porsche has slashed profit targets amid trade tensions and slowing demand for electric vehicles.
The luxury sports car maker, which is majority-owned by Volkswagen, faces growing competition from China.
Porsche – where tennis star Emma Raducanu is a global ambassador – said its profit margin this year would be between 10 and 12 per cent, even before factoring in any US tariffs Donald Trump imposes.
It had achieved an 18 per cent margin in 2022 and 2023 but last year this fell to 14 per cent. The German group expects ‘market conditions to remain very challenging and for competition in China to intensify’.
Profits fell by more than a fifth to £4.7billion last year compared to £6.14billion in 2023 as sales were flat at £33.6billion.
After deliveries of its all-electric Taycan model halved in 2024, it will invest £673million in combustion engine and hybrid vehicles in 2024. Shares in Frankfurt fell 3 per cent yesterday.
Reverse gear: Porsche – where tennis star Emma Raducanu (pictured) is a global ambassador – said its profit margin this year would be between 10 and 12%
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