Porsche is reassessing its push for an all-electric future. The luxury automaker is considering bringing back internal combustion engine (ICE) and hybrid options for models initially planned as electric vehicles (EVs). Instability in the EV market has prompted this strategic pivot, with the company weighing its options amid fluctuating demand for electric models.
One potential comeback could be a new ICE-powered Macan. This move would likely position the popular SUV alongside its electric sibling, the Macan EV, which launched in 2024 and has received solid customer interest.
Why Porsche May Bring Back Combustion Engines
Lutz Meschke, Porsche’s Chief Financial Officer, confirmed this change in direction. Speaking about the company’s evolving plans, he remarked, “We are exploring the possibility of equipping some of the originally planned electric models with hybrid drives or internal combustion engines in the future. Conceptual decisions are being made, but what is clear is that we are committed to the combustion engine for much longer.”
This goal aligns with customer trends and wider uncertainties around EV adoption. While the Macan EV sold 18,278 units in Q4 of 2024, or 66% of Macan’s total sales for the year, EV adoption trends remain unpredictable. Senior executives want to hedge their bets after seeing what many describe as the sharp decline in Taycan sales.
The Taycan, once a flagship for Porsche’s EV ambitions, faced a 49% drop in sales in 2024 compared to the previous year. Porsche attributed this decrease to the launch of the Taycan facelift, but it has raised greater concerns over whether demand for EVs will remain consistent.
2025 Porsche Taycan Turbo GT in motion
The ICE Macan Could Return
Introduced in 2013, the original ICE-powered Macan quickly became one of Porsche’s best-performing models, with over 500,000 units sold globally. It received updates in both 2019 and 2021 to maintain its competitiveness in a crowded SUV market.
Due to stricter cybersecurity regulations, Porsche stopped selling the ICE Macan in Europe in April 2024. However, demand remains strong in markets like North America, where the gas-powered SUV is still available. A modernized version of the ICE Macan might not only reignite interest in Europe but also bolster Porsche’s overall lineup.
Other automakers, including Audi, are adopting similar approaches. Audi’s decision to offer an updated ICE-powered Q5 alongside the fully electric Q6 e-tron illustrates how hybrid product lineups can cater to diverse market needs.
Original ICE-powered Porsche Macan GTS cruising on highway
Rethinking EV Commitments
For Porsche executives, the unexpected drop in Taycan performance demonstrates the uncertainties surrounding long-term EV demand. Consequently, the automaker has scaled back Taycan production. Reports even suggest a potential withdrawal of Taycan assembly from Porsche’s Stuttgart factory, which could lead to further organizational restructuring. While Porsche originally aimed for 80% of global sales to come from EVs by 2030, this ambitious goal has now been quietly shelved.
Upcoming launches, such as the all-electric Porsche Cayenne expected in late 2025, remain integral to Porsche’s strategy. Still, hybrid and gas-powered Cayenne variants will reportedly stay in production, with ongoing updates ensuring they remain competitive through the next decade.
Additionally, Porsche has delayed its electric 718 family due to struggles with battery supplier Northvolt. This setback led to a further extension of the 718 Boxster and Cayman lifespan, vehicles that continue to draw strong consumer interest, with a 15% sales increase in 2024 (23,670 units).
Prototype of all-electric Porsche Cayenne undergoing field tests