German sports car manufacturer Porsche AG has announced a major strategic reset aimed at making the company “leaner, faster and even more desirable” as it navigates challenging global market conditions.
Speaking at the company’s annual media conference in Stuttgart, newly appointed CEO Dr Michael Leiters said the automaker has already begun implementing targeted measures to reposition the brand for long-term growth.
“Since I took office, our management team has systematically analysed the situation and begun a series of initial targeted measures,” Leiters said. “We are using the current challenges as an opportunity to act even more decisively.”
‘Value over Volume’ philosophy
Leiters officially started in January and has moved quickly to introduce the company’s Strategy 2035. It focuses on strengthening profitability, streamlining operations and reinforcing Porsche’s core identity as a sports car manufacturer.
Central to the strategy is Porsche’s long-standing “Value over Volume” philosophy, which prioritises exclusivity and high margins rather than chasing higher sales volumes.
Focus on core sports car business
The new plan will also see the company simplify management structures, reduce bureaucracy and focus more strongly on its core sports car business, while exploring opportunities to expand its product portfolio into higher-margin segments.
“We stand for uncompromisingly good sports cars that people want to drive themselves – cars that deliver performance, passion and emotion, regardless of the type of powertrain,” Leiters said.
Brand continues to invest in new products
The strategy comes as Porsche faces a difficult global environment, particularly in China where the luxury car segment has come under pressure amid intense price competition, especially in the electric vehicle market.
Despite these challenges, the brand continues to invest in new products.
In 2025 Porsche unveiled two major new models, including the latest Porsche 911 Turbo S, now the most powerful production 911 ever built thanks to a new bi-turbo powertrain with T-Hybrid technology.
The company also revealed the new all-electric Porsche Cayenne Electric, which Porsche says will set new benchmarks in the premium SUV segment.
2025 saw major sales, profit drop
Financially, 2025 proved to be a difficult year for the company. Porsche’s global sales revenue declined to €36.27 billion, down from €40.08 billion in 2024. Operating profit fell sharply to €413 million, compared with €5.64 billion the previous year, largely due to extraordinary expenses of about €3.9 billion linked to restructuring, battery investments and US tariffs.
Global deliveries also dropped by 10.1% to 279,449 vehicles.
Porsche South Africa sold about 1,147 vehicles in 2025
Locally, based on industry registration estimates, Porsche South Africa sold about 1,147 vehicles in 2025 – representing a year-on-year decline of roughly 8.8%.
Looking ahead to 2026, Porsche expects market conditions to remain difficult but believes its restructuring measures will help improve margins and strengthen the company’s long-term competitiveness.
