Porsche Will Increase Taycan Production Due To High Demand

DEC 3 2018 BY MARK KANE 48

Initial target of 20,000 is just the beginning

Porsche is about one year away from beginning production and sales of its first all-electric model – the Taycan (formerly Porsche Mission E), which was planned at some 20,000 annually.

As it turns out, customer demand and market research encourages the German manufacturer to hint at an even higher production volume (above 20,000), which is good both from the EV adoption perspective as well as highly-needed profitability.

CEO Oliver Blume said to WirtschaftsWoche (via Electrek) (translated from German):

“However, due to the positive response, we will adjust this number upwards, especially since the Cross Turismo as the first derivative of the Taycan got green light for the series.”

The total volume for the Taycan concerns two models – the base Taycan sedan and its CUV version (Porsche Mission E Cross Turismo).

Combined with the ability to share some development costs and parts with Audi e-tron GT concept, Porsche should be fine with the profitability of its EVs.

Apparently, in Norway alone, some 3,000 reservations were placed for the Taycan – five times more than total ICE sales, which means that Porsche will expand in Norway just like Jaguar did with the Jaguar I-PACE.

Source: Electrek

Categories: Porsche

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48 Comments on "Porsche Will Increase Taycan Production Due To High Demand"

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Get Real

Wow, so this means that compelling long range BEVs that you can freeway travel and fast charge on sell? s/

Bimberle

I wonder what all the crybabies will say in a year when there‘s a plethora of bevs available from pretty much all manufacturers. Under all these articles, half of the comments are something like ˋbuht wher I cans buy one?????‘ when it‘s clearly about ramping up production. (Of course, if you‘re Tesla: take your time and then some)

Martijn

Then they will point at charging wait times like some had last Thanksgiving weekend. So the once or twice a year when demand is high. And ignore that there will be more chargers build over the time and that only is just one or twice a year! Normally you don’t have that issue. Here in Europe from Holland to southern France is around 500 miles so not that far. But they are still whining about the range and charging etc.

Another Euro point of view

500 miles between Holland and Southern France ?!? Can you share with me your secret short cut. Last time I checked it was like 300 miles further. Like 1300 km (Amsterdam to Marseille). Nice would put you 100 miles further. So 900 miles.Now as there was recently an article about EVs real range where it was mentioned that real range of Nissan Leaf was around 210 km it would mean that from Holland to South of france you would need to stop about 5 times for a full hour as you would not want to reach a charging station with your battery completely depleted. Do that with 2 children of less than 4 years old and a sulking wife and you would be ready to write the yet to come best seller “Such a bad experience never again”. Now I would agree with you that the EVs able to do that sort of trip without being a total punishment are slowly coming (64 kWh Hyundai Kona). The others I do not mention as there will never be a mobility revolution based on EUR 50k+ cars which sales figures are only but a rounding error.

Sustainable2020

Ahhh no Bimbe….that’s a big fat NO….Ford, Chrysler, Toyota, Honda, Mazda, Subaru, Mitsubishi, BMW, Lexus, Infiniti, Acura, Genisis, Volvo, Saab, Mini, Smart, etc do not have a viable, acceptable range to most Americans(200+ miles) bev now or even planned for this decade.

There will however be an ample number of expensive, luxury suv n wagon “acceptable” bevs available in the USA within a year.

windbourne


There will however be an ample number of expensive, luxury suv n wagon “acceptable” bevs available in the USA within a year.

No, there will not be.
Tesla is doing it right by producing vehicles that are SUPERIOR to corresponding ICE vehicles. This Taycan is a possible vehicle that will take on ICE. BUT, nearly all of the current EVs (save tesla), along with most of the coming EVs, are junk. In addition, they will go down just like the volt hybrid.

JOHN

not if u use it for city driving only. makes 0 sense to buy a tesla except if ur a vanity driven fool. i use my 93 mile soul ev everyday. not a problem. if a have to drive far i would never by a long range ev. have an ice car and im fine with that. in the usa GAS PRICES ARE SO LOW IT ALMOST DOESNT MAKE SENSE TO BUY AN EV. BUT I GOT A LEASE RATE THAT MADE IT A NO BRAINER.

MoMac

“In addition, they will go down just like the volt hybrid.”

The Volt hybrid is going away because the ZEV credit rules changed (effective 01 Jan 2018) to reduce the amount of ZEV credit awarded per unit. For a low volume vehicle, it is becoming not worth producing. All-electric vehicles don’t have this ZEV credit issue.

Do Not Read Between The Lines

CARB TZEV limit (2018 2.0%/4.5%, 2019 2.5%/7.0%, … 2025 5.5%/22.5%) + credits (USA 1.3 v 4, China 2 v 6) + current and expected battery cost reduction + sedan

Do Not Read Between The Lines

That’s ridiculous.
There are a bunch of other BEVs that are like typical ICEVs (but with the benefit of the EV experience). But they’re a lot more expensive.
As ranges have increased, demand has increased.
As price falls, demand will increase.

Davek

Glad you mentioned Saab. For what it’s worth, Studebaker, AMC and Bricklin are also really weak when it comes to long range EVs 😉

MoMac

Tucker and Packard seem to be late in producing EVs as well.

yo

I guess Packard didn’t answer the Bell…

windbourne

The number of REAL BEVs on the market by 2020, will be less than 10, if not less than 6.
The fact is, vehicles like the leaf, the bolt, the I3, etc are pretty much worthless junk that will not sell.
The fact that they do not outsell corresponding ICE vehicles proves what POS they really are.

alohart

Our 2014 i3 BEV has been and continues to be the only vehicle of any kind, including those powered by an ICE, that meets our desire for a compact, lightweight, RWD hatchback built from corrosion-free materials. Worthless junk?! Not even close…

MoMac

“The fact is, vehicles like the leaf, the bolt, the I3, etc are pretty much worthless junk that will not sell.”

Says someone who has never test driven any of these vehicles.

earl colby pottinger

(MoMac) I have to agree with you. I have not driven them either but I have been to more than one Drive-Week. And one thing I found, the owners of Leafs, Bolts, and other BEVs and even Volts love their cars. They found not having buy gas, fully charged in the morning , quiet and fast operation makes them say LOVE LOVE LOVE their cars.

The only complaint I heard it they would like more range for the family trip (This is Ontario Canada) and often they are saving up for a Tesla because they want that range. They often are willing to go non-Tesla but they want more range.

Nono13

The Leaf will be sold to 90 000 units this year. YTD in October it was just a thousand units less than the cumulative Model S and X, despite the new Leaf only being available since April in many countries. And of course before a more wanted 60 kWh version of the Leaf.

Does that make Model S and X worthless junk that are not selling ?

Brian

Are you referring to BMW that will loose half of their M5 and M6 sales?

Davek

Well it’s a good thing they upped the production; I’d wanted to order one, but they were all Taycan! 😀

Thank you, thank you… I’m here all week…

MoMac

Good, but it would work better if it was actually pronounced that way.

Taycan is actually pronounced “tie-con”, although I’m sure that it will be mispronounced often.

robus

Yeah that’s not going to happen

Do Not Read Between The Lines

Badumtsh.

Bloggin

Very Nice. Taycan should be pulling sales from all other Porsche ICE models and keep Porsche customers from wandering to the competition.

windbourne

You have the first part right, but wrong on the second. Tesla is already destroying all reputations out there. Tesla has stolen a lot of Porsche sales and will continue stealing more.
I will say that Taycan may be the first Tesla competition. We will see.

Nozuka

Porsche sales keep increasing.. not sure how you are measuring those lost sales…

Doggydogworld

He uses alternative math.

windbourne


Apparently, in Norway alone, some 3,000 reservations were placed for the Taycan – five times more than total ICE sales, which means that Porsche will expand in Norway just like Jaguar did with the Jaguar I-PACE.

I have spoken loads about how the EV demand will take off and eat into ICE sales over the next 2-3 years. In particular, I have said that demand for ICE sales will PLUMMET by 2022/3. Here we are going into 2019, and Porsche is already seeing that their first real EV model is now outselling their entire ICE line in Norway. What happens as Porsche introduces other models? Ppl will realize in 2-3 years that buying an ICE vehicle will lose you money faster than buying GE or Enron stock.

This is confirming it.

Carl Anton Stenling

Here in Norway it seems that suddenly people shy away from fossil fuelled cars. The shift is really marked and now only the delivery capacity for EVs is holding back EV sales. People are afraid of buying diesel cars because the resale value is uncertain.
I expect we will see a similar marked shift in demand in other markets at some point when EVs reach price parity with fossil fuelled cars.

the dane

So far you have said nothing in the comments on this article that makes sense.
And if you took the time to understand what is going on in Norway, you would not have written the above either.
Norway PAYS you to buy a bev. No VAT, no registration tax, no toll-road tax and lower parking fees. Norway simply cannot be used as a measure on bev sales and popularity.

robus

But it does inform us about how the market shifts once EVs become popular, car buyers become concerned about the resale value of ICE cars, creating a stampede to EV and ICE becomes worthless when no one wants to be left holding the bag.

Knut Erik Ballestad

Nope, there are *NO* subidies, general tax returns, cash-backs or other subisdies on EV’s in Norway.

What we basically do is this*
– A *temporary* excemption from our 25% sales tax
– Excemption from annual $334 road tax/traffic insurance tax (EV’s pay $54 instead)
– All vehicles are ‘registration taxed’ heavily based on their pollution level (Zero emission vehicles pay no registration tax)

the dane

Call it what you prefer, but letting EV owners save sales tax is what I call a subsidy.

From the Norwegian EV Union: Momsfritaket er det viktigste av kjøpsinsentivene, i følge spørreundersøkelsen Elbilisten 2018 oppgir 60 prosent at de ikke ville kjøpt elbil uten denne fordelen.
Translated: According to market research (questionaire), 60% of EV buyers would not have bought an EV without the 0% sales tax advantage.

The state is paying norwegians to buy an EV, and the funny thing is, they do it with the extreme wealth generated by selling oil from the norwegian underground. It’s a dirty world…..

Will

They should make 50k Taycan and share cost with Audi

Neromanceres

Both Porsche and Audi are part of the VW group and the cost is already from VW.

andi_nan

No, definitely not. Porsche and Audi are part of the VW group, but no one at Porsche or Audi would say “cost is already from VW”, that is not how the VW Group works.

William L

Tesla stole a lot of Porsche sales, Porsche will get many back with a successful Taycan launch. It will force Tesla to speed up the timeline for a “major” refresh the Model S.

Alex

Porsche is growing global sales, also in the US. In the first 3 quarters of 2018 they’ve posted $3 billion operation profit. If you say every other car over $50k is one less Porsche, yes Tesla is stealing sales… like Mercedes, BMW, Lexus, Jaguar, …

MoMac

Based upon what, exactly?

Porsche sales are still strong in the US (Tesla largest market).

http://carsalesbase.com/us-car-sales-data/porsche/

William L

From Porsche CEO:

““We have lots of respect for Tesla – and, yes, I’m sure there are some Porsche customers, that in terms of connectivity, digital stuff in the car and electric battery in the vehicles, didn’t find the car that they wanted with Porsche so they bought somewhere else.””

MoMac

You didn’t say that Tesla was pulling some customers from Porsche.
You said “Tesla stole a lot of Porsche sales”.

MoMac

“The total volume for the Taycan concerns two models”
Where is the actual evidence of the 2 models theory though?
You think the original plan of 20,000 is/was for both models, right?

Then how do you explain this article below written in November, 2016?
” Porsche expects his first purely electric model with a large demand. “We calculated the mission E with a quantity in the order of about 20.000″, said Porsche boss ”
The Cross Turismo didn’t get the green light to be produced until a month or two ago.

Did you (author) read to much into the phrase that states with”especially since the Cross Turismo”? That phrase may have meant that increasing production fits better production scheduling. The same article states “Porsche wants to increase the production capacity for its first electric car Taycan due to strong demand. So far, the annual production capacity is 20,000 vehicles.” Just 1 model.

https://www.automobilwoche.de/article/20161127/NACHRICHTEN/161129935/1276/elektrostrategie-porsche-will–mission-e-pro-jahr-verkaufen

andi_nan

A nice premium EV from Porsche sells? Who would have thought? The EV revolution is coming and it is coming fast. I am very glad that Porsche is a nice part of it.

Jason

Interesting, isn’t it? Porsche Taycan is supposed to cost about US$85k, so 20,000 Taycan gives you $1.7bil in turn over. What will their profit margin be? 20%? So maybe a profit of $340mil? And take out the development costs (I bet that 350kW 800V battery system cost a pretty penny), it’s hard to see how 20,000 for a company like VW is even viable.

trackdaze

Porsche undoubtedly taking lead for Volkwagon Auto Group. A proportionate amount of the investment will be recovered from Audi,Volkswagen,Skoda,Bentley…..for models that use the tech.

MoMac

“it’s hard to see how 20,000 for a company like VW is even viable”

Porsche only selling 30,000 911’s per year globally might give you something to think about.

The skate board chassis and most of the power train components will be shared between the Taycan and the Cross Turismo, as well as an Audi model (I think) and likely other vehicles. And the Cross Turismo is NOT included in the 20,000 number as I pointed out in a post above.

In Europe, Porsche sells their vehicle in their own shops — as well as through independent dealerships. So there is retail and service income in Europe as well.

the dane

I’ll bet you the profit margin is higher than 20%. A company cannot fund RD cost in cutting edge tech with 20%. Also, the 85k is base price right? Adding all the nice stuff is easily another 20-40k.
Just for fun I looked at the E-Pace prices in Denmark recently. Base price $58.000, top of the line with all options price $165.000.

Shane

But people don’t want electric cars. They want fast cars with growling engines that can fill up with gasoline in 5 minutes. (Sarcasm. Sorry, couldn’t help it.)

I wonder when other automakers will get the memo.