Remember when Porsche said 80% of its cars would be electric by 2030? That plan is officially dead. The Stuttgart sports car maker is now firmly committed to gas engines and plug-in hybrids well into the 2030s, marking one of the biggest strategy reversals in the luxury auto industry. After a financially brutal 2025, Porsche is betting that the rumble of a flat-six or twin-turbo V8 will do more for its bottom line than battery packs.
- Porsche plans to keep combustion engines and hybrids available “far into the next decade,” with a new gas-powered Cayenne expected around 2028.
- The company booked roughly $4.4 billion in extraordinary expenses in 2025, largely tied to unwinding its EV-focused product strategy.
- Future models, including a new Macan successor and the flagship K1 SUV, will offer combustion and hybrid options alongside electric variants.
How Porsche’s EV Dream Fell Apart
It’s been four years since Porsche projected EVs would account for over 80% of its sales by the end of the decade. That target has already been abandoned, as electric cars aren’t gaining traction at the rate estimated in early 2022. Last year, vehicles without combustion engines accounted for just 22.2% of total shipments. That’s a far cry from the 80% Porsche once dreamed about.
Porsche is betting on gas engines and aggressive cost cuts to pull itself out of one of the worst financial periods in its modern history. The company booked $4.5 billion in extraordinary expenses in 2025, including a $3.5 billion writedown for its EV strategy pivot. Its operating profit collapsed 98%, and margins shrank to 0.3%. New CEO Michael Leiters, who led McLaren before taking the job, has a clear diagnosis: the company moved too fast toward electric, and now it needs to move back.
The Taycan, Porsche’s flagship EV, saw sales fall 22% in 2025. China, which was meant to be the growth market for luxury EVs, has instead become a market where domestic brands are beating European ones on technology and price. Sales dropped across multiple regions, and the sports car manufacturer moved 279,449 vehicles in total, which was 10.1% less than the previous year.
Gas Engines Are Staying, and New Models Are Coming
Porsche has no intention of abandoning ICE. Speaking with Auto Express magazine, Cayenne product boss Ralf Keller revealed the company intends to stick with gas engines well into the 2030s. As Keller put it, “We plan to have these combustion engines and hybrids [available] far into the next decade.”
Porsche will release a fourth-generation gas-powered Cayenne around 2028 or 2029. Expect mild-hybrid and plug-in hybrid options, similar to the current model. Some technologies from the electric Cayenne have been touted for the ICE version, including the Active Ride suspension system, which would be a first for a Porsche combustion-engine vehicle if it makes the cut.
Although it will share a platform with the Audi Q7, the Cayenne won’t become a three-row SUV. Keller stressed that the model has always worked best as a compact car and the next generation will stay consistent with that approach. For buyers who need something bigger, Porsche will offer the upcoming K1 model, which was originally conceived as an electric vehicle.
Great news for purists: the 718 Cayman and Boxster will return with combustion engines. As for the 911, there were never any announcements about going electric. Porsche once said the 911 would go down in history as the company’s last gas-fueled car. Porsche is working on new electric cars, but the iconic 911 will be retaining its flat-six petrol engine.
The Financial Cost of Changing Course
Reversing a strategy this big doesn’t come cheap. Porsche incurred about $4.4 billion in extraordinary expenses. Those charges broke down into roughly $2.7 billion for the product strategy realignment, about $790 million from battery-related activities, and another $790 million tied to U.S. tariffs.
The group’s operating return on sales was 1.1% in 2025, down from 14.1% in 2024. That’s a staggering drop for a brand that was, not long ago, the most profitable car company in the world by margin.
CEO Oliver Blume has said the goal is to offer the choice of gas, plug-in hybrid, and electric powertrains in all of Porsche’s vehicle segments well into the 2030s. The idea is to provide a “convincing mix” of combustion engines, plug-in hybrids, and battery-electric vehicles to meet the full range of customer needs. Think of it as a three-lane approach where buyers pick their preferred powertrain instead of being forced into one.
Both Porsche and Audi will have to align their product strategies for combustion-engine cars depending on regional legislation. Although the European Union has backed away from a 2035 sales ban on new ICE cars, it still wants automakers to slash COâ‚‚ emissions by 90% compared to 2021 levels, which will be a major undertaking for both brands.
Good News If You Weren’t Ready to Go Electric
If you’ve been holding off on a Porsche because you weren’t ready to go electric, the brand just gave you plenty of reasons to stay interested. Plans for a new combustion-engine crossover have already been announced as a replacement for the first-generation Macan. The ICE Macan replacement is by far the most important model in terms of volume. The first-generation crossover will be retired by the middle of this year, but its successor won’t be ready until sometime in 2028.
Porsche is keeping gas engines on the menu through the next decade while still building out its EV lineup with the Taycan, electric Macan, electric Cayenne, and a future two-door electric sports car. The automaker will now link its targets to customer demand, and right now that means more models equipped with gas engines, either as standalone units or paired with plug-in hybrid systems. The message is clear: Porsche isn’t abandoning the future. It’s just letting customers choose their own path to get there.
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