Porsche Reduces Taycan Production in Response to Declining Demand

Reasons for Production Cut

• Production of the model will allegedly be cut to one shift at the Zuffenhausen plant.
• Germany scrapped state subsidies for electric vehicles at the end of 2023.
• The updated 2025 Taycan could help boost sales.

Porsche is reportedly reducing production of the all-electric Taycan in Germany due to slowing sales and a general decline in demand for EVs. The Taycan has been a solid performer for Porsche, selling more than 40,000 examples in 2023. However, a report from Germany claims that, like many other EVs, demand is dropping because early adopters desperate to buy an EV have already done so.

Impact of Subsidies and Market Trends

The abolishment of German state subsidies for electric vehicles at the end of 2023 is not believed to be a major contributor to declining demand. Sales of EVs have suffered through the first six months of 2024 in Germany, dropping 16.4%. In addition, the Chinese market is drying up for the Taycan because of the growing number of cheaper EVs built locally.

Future Outlook

Despite the challenges, Porsche recently updated the Taycan for the 2025 model year, which should help offset some of the decline in demand. The launch of the Macan Electric, a cheaper alternative to the Taycan, could also boost sales in China where it is expected to be popular.