Porsche is reportedly planning steep price hikes in 2023 and beyond

Porsche will raise prices significantly from mid-year to keep its margins high in the face of some major headwinds, Lutz Meschke, Porsche’s head of finance and IT, said in a earnings call on Monday, Autocar reported.

The price increases also extend to the electric versions of the Macan, 718 and Cayenne planned for the coming years. Meschke said the new electric versions, according to Meschke, will cost around 10-15% more than comparable gas-powered versions, which will remain on sale for a period of time.

The electric Macan will be available in the first half of 2024. The electric 718 will follow around 2025, and the electric Cayenne is expected to follow a year later. Around 2027, Porsche will unveil a new flagship SUV with third-row seats, but this model will be purely electric.

Porsche has room for price increases as demand for its vehicles remains high and the typical customer is in a financially strong position, Meschke said at Porsche’s annual general meeting on Monday.

Lutz Meschke

The automaker just finished a strong 2022, with sales and operating profit hitting record highs. The key number for Porsche is operating income, which grew from 16% in 2021 to 18% in 2022.

Porsche aims to keep its operating profit between 17% and 19% in 2023 and increase it to over 20% over the longer term in a strategy announced Monday called the Road to 20.

The price hikes will help meet those targets while offsetting costs stemming from heavy investments in EV technology as well as key headwinds, which Meschke described as a tight supply chain, rising geopolitical tensions and ongoing inflationary pressures.

“With the Road to 20, we are making Porsche even more resilient and our brand stronger than ever,” he said. “And we’re going to rethink everything from our product range and pricing to our cost structure.”