Gary Zhou 
Key Points
- 💡 Porsche AG is facing supply chain issues that are causing disruptions in its electric vehicle production.
- 💡 The company’s Chief Financial Officer mentioned challenges in securing essential components like high voltage heaters.
- 💡 Despite the supply chain issues, Porsche remains optimistic about its BEV sales target, particularly due to resilient luxury demand.
- 💡 Flexibility is crucial for Porsche to navigate the constant occurrence of supply chain issues.
- 💡 Porsche reported a 10.7% increase in operating profit and a 14% rise in revenue for the first half of 2023.
- 💡 Deliveries have improved by 14.7% compared to the previous year, indicating a recovery from past production setbacks.
- 💡 The Chinese market’s recovery is slower than expected, and there might be a potential slowdown in the German market.
- 💡 Despite challenges, Porsche’s luxury market has shown resilience, and the company has maintained pricing consistency to offset higher costs.
Porsche AG Cautions on EV Production as Supply Chain Issues Persist
Porsche AG recently sounded a warning about the impact of supply chain disruptions on its electric vehicle (EV) production. Despite the challenges, the luxury carmaker expressed confidence in its BEV sales target, citing resilient demand in the luxury segment. However, slower growth in China and Europe could be expected due to the ongoing supply chain issues.
During a media call following the release of Porsche AG’s half-year results, Chief Financial Officer Lutz Meschke highlighted the significant hurdles in securing essential components, including high voltage heaters. These difficulties have raised doubts about Porsche’s ability to achieve its goal of having BEVs account for around 12-14% of total sales.
Porsche’s Chief Executive, Oliver Blume, emphasized that supply chain issues have been a recurring problem, necessitating flexibility in their operations. He mentioned that virtually every week presents supply chain challenges, and the latter half of the year needs to show significant improvement in supply for the company to meet its EV sales targets.
Despite the supply chain challenges, Porsche reported an operating profit increase of 10.7% in the first half of 2023, reaching €3.85 billion ($4.25 billion). Revenue also rose by 14% to €20.43 billion ($22.6 billion) during the same period. The company’s deliveries increased by 14.7% year-on-year, indicating a recovery from past production setbacks, including those caused by pandemic-related lockdowns in China last year.
Porsche highlighted that the Chinese market’s recovery has been slower than expected, and there might be a potential slowdown in the German market. Nonetheless, Blume expressed optimism, noting that the luxury market tends to be more resilient than the mass market. The company has managed to maintain pricing consistency amid increasing sales, helping offset higher costs.
