Porsche’s Only Solution To Tariffs Is To Raise Prices Even Further

Porsche is having a rough time right now, and investors aren’t happy. Now, projections for the year have diminished on the back of slipping demand for Porsche cars and SUVs in China, a slowed growth in global electric vehicle adoption and sales, and the new tariffs imposed by the U.S. market. The Taycan was very popular there, but local rivals have since made competing very difficult, with similar (or more) power and features for less money. Basically, expect things to get more expensive, and for a while, as Porsche starts to draft new plans in response to shifting demand.

Porsche Won’t Bow To The US

Those new plans will not involve any shift to US manufacturing for Porsche itself, the company’s finance chief, Jochen Breckner, confirmed in a quarterly update. He claims Porsche’s production volumes are too small to justify the cost of shifting any of its current vehicle production stateside, even if it were to partner with existing VW manufacturing infrastructure in Tennessee, where VW EVs are assembled, and South Carolina, where the Scout brand is starting back up.

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That means Porsche will simply bear the brunt of the new tariffs imposed by the US on imported cars as it continues to manufacture and export vehicles in Europe. The company is known for viewing its German production as a mark of quality and more of an appeal for its customers to drive a German-built sports car.

Price Increases Are Coming

Porsche anticipates a tariff impact of as much as €100 million, or roughly $114 million lost, across April and May, as the German automaker has yet to raise its US vehicle prices in response to the tariffs. It’s unclear when those price increases will come, but Porsche isn’t likely to hold out forever on bearing that cost, especially when its premium vehicles are already in a price bracket where most customers choose additional options valued at more than the tariff cost, anyway.

Breckner confirmed price increases will come if the tariffs remain, but did not offer a strict timeline. Porsche has already recently raised the price of its base 911 Carrera sports car, which is now 7% more expensive than the previous model year, but reportedly unrelated to the tariffs.

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Before the tariffs, Porsche was projecting a profit margin forecast of between 10% and 12%, but has now shifted that back down to between 6.5% and 8.5% (but still, a profit nonetheless). The company expects revenue to come in between $42.1 billion and $42.9 billion, which is down from the previous max prediction of $45 billion. A big problem is the Chinese market, where Porsche’s sales slipped by 42% in the first quarter of 2025. In response, Porsche has canceled a planned project to expand high-performance battery production at its Cellforce subsidiary.

Source: Reuters