Strategy And Planning

Porsce’s 2035 strategy targets higher margins, greater exclusivity with focus on cost reduction

October 9, 2026
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Sales and distribution costs are also targeted to decline by 20 per cent, while a materials cost programme aims to reduce individual material costs for new vehicle projects by around 10 per cent compared with previous plans. />Porsche has unveiled a new strategy through 2035 aimed at strengthening its sports car positioning, increasing profitability and reducing its dependence on vehicle volumes, as the luxury carmaker shifts towards higher-value products and a leaner operating structure.<br><br><!– PROMOSLOT_M –>Unveiled at its Capital Markets Day, the ‘Sportwagenschmiede ’35’ strategy is centred on the principle of ‘Value over Volume’. Porsche plans to expand its presence in higher-margin segments, increase vehicle individualisation and reduce its break-even point to below 200,000 units.<br><br><div class=” article-detail-ad-slot=”” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/134835782.cms” height=”442″ loading=”eager” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” width=”590″></img></p> </div> <p>The company plans to increase the share of D and E-segment models in its overall portfolio by around 45 per cent in the medium term. It also intends to reduce the number of model variants by around 20 per cent, with the objective of increasing sales volume per variant by approximately 30 per cent.</p> <p>Porsche is also developing a mid-engined super sports car platform for a future model line positioned above the 911. The company is exploring a D-segment SUV positioned above the Cayenne and plans to launch at least one brand-defining new product every year by 2030.</p> <p>The product strategy will continue to include combustion engines, plug-in hybrids and battery-electric powertrains. Porsche said it will invest in brand-defining combustion engine and PHEV drives as well as the next generation of battery technology.</p> <p>The all-electric 718 Boxster and Cayman are expected to support sales from their first full year of production in 2028. Porsche will also introduce a new B-segment SUV in 2028, with internal combustion and plug-in hybrid powertrains, which is expected to contribute to sales and profitability from 2029.</p> <p><b>Cost cuts and leaner organisation</b></p> <p>Porsche is targeting a reduction of up to 20 per cent in development costs for future model lines, while production personnel costs are expected to fall by up to 30 per cent in the medium term.</p> <p>Sales and distribution costs are also targeted to decline by 20 per cent, while a materials cost programme aims to reduce individual material costs for new vehicle projects by around 10 per cent compared with previous plans.</p> <p>As part of the organisational restructuring, management positions are planned to be reduced by 40 per cent in the medium term. The overall workforce is expected to decline by 25 per cent, with a strategic target of 30 per cent.</p> <p>Porsche has also agreed a Future Package with employee representatives that includes a socially responsible reduction of 9,000 jobs, alongside a commitment to secure core workforce jobs until 2035.</p> <h3><b>Porsche targets 10-15% operating return</b></h3> <p>Financially, Porsche is targeting a Group operating return on sales of 10-15 per cent and an Automotive net cash flow margin of 9-12 per cent in the medium term. Its long-term targets are a 15 per cent operating return on sales and a 12 per cent Automotive net cash flow margin.</p> <p>The company is targeting Group sales of €41-45 billion in the medium term, while aiming to generate revenue growth ahead of volume growth and earnings growth ahead of revenue growth.</p> <p>Porsche said the strategy is intended to lower its break-even point to fewer than 200,000 vehicles, supported by a more efficient cost and capital structure. It also plans to maintain targeted net liquidity equivalent to 15-20 per cent of automotive revenue.</p> <p>“We are pursuing a clear plan with our strategy Sportwagenschmiede ’35. The ultimate goal is to further strengthen our unique sports car brand – across all model lines and with new, highly desirable models in particularly high-margin segments,” said Michael Leiters, Chairman of the Executive Board of Porsche AG. </p> <div> <div aria-label=

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