Porsche expects weaker returns this year as it pushes ahead with electric models.
The luxury sports car maker, which is majority owned by Volkswagen, warned that profitability will be hit this year, with margins set to drop as low as 15 per cent.
This is down from the 18 per cent it achieved in 2022 and 2023.
The firm is pushing forward with producing its hybrid 911 car, which is set to be released this summer.
Although the company has not confirmed exact details, the industry is expecting a starting price of around £90,000.
The new line-up of models also includes an upgraded version of the electric Taycan.
Yet the group has been hampered by ongoing supply chain issues and high inflation, pushing up costs of productions.
Analysts at Citigroup said the guidance was ‘disappointing’ and said that the return on investment for new cars would take time.
‘Porsche will focus on brand and pricing in future, but to do this, the product range needed to be renewed.
This is now happening – but the full impact on pricing and profitability will take time,’ they said.
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Shares in Porsche were down 4 per cent in early trading, but recovered during the day to close up 4.25 per cent. They are, however, down almost 12 per cent in the past 12 months.
The estimates came as the Stuttgart-based group posted sales of £35billion for 2023, up £33billion from the year before.
It delivered 320,221 cars in the year.
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