Porsche isn’t having the best time right now. Fresh from admitting that operating profit plummeted 93 percent in 2025, the automaker has revealed that sales in the first quarter of this year sank 15 percent to 60,991 cars, down from 71,470 a year ago.

The company says it saw this coming due to the end of 718 production and Macan Electric sales settling down after the flurry of interest at last year’s debut. But there’s a problem looming ahead that could make things worse before they get better.

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The biggest red flag sits right in the middle of Porsche’s lineup. The Macan, previously the brand’s best selling model, managed 18,209 deliveries, down 23 percent, but here’s the kicker. More than half of those, 10,130 units, were still combustion versions, while the electric version accounted for only 8,079, down a massive 43 percent from last year. With the ICE Macan heading for the exit this summer, and no replacement due for a couple of years, Porsche is about to lose its volume backbone.

911 Is Growing, But Nothing Else Is

Elsewhere, the Cayenne kept things relatively steady with 19,183 deliveries, down just 4 percent, and with Macan sales falling, the bigger SUV is now the most bought. And the 911 is out here ignoring the downturn entirely. Sales of the iconic sports car jumped 22 percent to 13,889 units, proving once again that heritage still sells, even when the broader market gets shaky.

But most Porsche models ended Q1 battered and bruised. The Taycan dropped 19 percent to 3,420 units, while the Panamera plunged 42 percent to 4,498 – due to a model transition, Porsche claims – particularly in China. The 718 range, now effectively retired, collapsed 60 percent to just 1,792 cars.

Porsche Q1 Sales By Model

The regional picture doesn’t help much either. North America remained Porsche’s biggest market with 18,344 deliveries, though that’s down 11 percent, likely not helped by changing incentives and tariff pressures. Europe excluding Germany fell 18 percent to 14,710, while overseas markets dropped 20 percent to 12,640.

China Woes Worsen

China has been a problem for a while, and deliveries in the country sank 21 percent to 7,519 units as domestic brands tighten their grip on the premium space. Porsche says it’s focusing on value over volume there, but that’s often what companies say when volume disappears.

Put it all together and Porsche’s explanation about product timing only tells part of the story. Between a cooling EV market, rising competition, and the imminent loss of the ICE Macan, the next few quarters could get even more uncomfortable.

Porsche Q1 Sales By Region

Porsche

Porsche has outlined a recovery plan after a bruising year, aiming to streamline operations and cut costs as it works to regain its financial footing. Under new CEO Michael Leiters, the former McLaren and Ferrari executive, the company hopes to restore its reputation as a profit powerhouse while reshaping itself into what Leiters calls a “leaner, faster, and even more desirable” brand. He took over at the start of the year, replacing Oliver Blume.

A Year Of Tough Numbers

The reset follows a difficult set of results. Porsche’s operating profit plunged 92.7% from €5.64 billion ($6.55 billion) in 2024 to just €413 million ($479 million) in 2025. Revenue also slipped, falling 9.5% to €36.27 billion ($42.10 billion). Operating return on sales shrank to a narrow 1.1%, while global deliveries dropped to 279,449 units, down 10.1%.

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Several factors combined to produce that outcome. Porsche booked €3.1 billion ($3.6 billion) in one-time restructuring charges, absorbed €700 million ($813 million) related to US tariffs, and faced a steep 26% drop in sales in China.

Porsche CFO Dr. Jochen Breckner said: “The global challenges and the company’s realignment impacted earnings in 2025. In 2026, our recalibrations measures will continue to have one-off effects on earnings in the high three-digit million euros range. In order to secure adequate margins by Porsche standards in the medium term and strengthen our resilience in the long term, we accept these burdens.”

The Solution

During Porsche’s annual press conference in Stuttgart, Leiters acknowledged that the turnaround plan is still taking shape. With the new leadership only just past its first 100 days, he admitted the company does not yet have “an answer to every question or a solution for every problem.” Even so, he used the event to outline the direction Porsche intends to take.

“We will streamline our management structure, reduce hierarchies and cut back on bureaucracy. We have also already begun to focus more strongly on our core business. We are using the current challenges as an opportunity to act even more decisively. We will comprehensively reposition Porsche, make the company leaner, faster and the products even more desirable.”

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Porsche is also planning significant changes in China, where the company intends to shrink its dealer network from 150 outlets to just 80 by the end of 2026 in an effort to protect pricing power.

Expanding The Lineup

To stop the bleeding, Leiters is looking upmarket. One of the first moves will be to simplify Porsche’s product portfolio by cutting complexity and reducing the number of variants. According to the CEO, the changes will focus on models with weaker demand, which likely points to the Taycan. Even so, Porsche says it plans to introduce “emotive new derivatives” of certain models later this year, though it has not revealed exactly which ones.

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At the same time, Porsche’s boss confirmed the company is developing new models aimed squarely at higher-margin segments. “We stand for uncompromisingly good sports cars that you want to drive yourself, that are fun, that convey performance and passion. And all this regardless of the type of powertrain,” said Leiters.

“We are considering the expansion of our product portfolio in order to grow in higher-margin segments. In doing so, we are looking at models and derivatives both above our current two-door sports cars and above the Cayenne,” he added

Porsche’s Next Halo Car?

The reference to two-door sports cars clearly points to the 911. What might sit above it is less clear. Leiters did not elaborate, but the possibilities range from a modern interpretation of the 928 to something far more exotic, such as a supercar or even a flagship hypercar.

Read: Porsche 928 Conceptualized As A Modern Electric Coupe For 2030

Porsche has been exploring that territory for years, with potential successors to the 918 Spyder. The Mission X concept hinted at one possible direction before enthusiasm for electric hypercars cooled.

The other confirmed project is a long-rumored three-row SUV flagship positioned above the Cayenne. Codenamed K1, it is expected to target markets such as the United States and the Middle East and could offer V6 or V8 powertrains.

The new offerings will benefit from the expansion of “high-margin customization programs” that will “further strengthen the exclusivity of the brand” helping it move into a new territory closer to the likes of Ferrari and Lamborghini.

ICE Life Support And EV Reality Check

Leiters acknowledged that Porsche needs to rethink what he called “the right drive technology.” Early momentum behind the fully electric Taycan has run into a tougher reality as regulations, demand patterns, and customer expectations have shifted in recent years. Slower-than-expected demand has forced the company to “adjust the ramp-up and portfolio of fully electric vehicles while extending the life of combustion and hybrid offerings.”

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The ultimate goal is to reduce upfront and direct costs by “fundamentally rethinking the development of our sports cars.” In the process, Leiters effectively confirmed earlier reports that the next generation of the 718 series will follow a multi-energy path. Porsche also plans to “leverage further synergies between our models,” using platforms and industry solutions more flexibly.

Sometimes the most interesting vehicle in a lineup is not the flagship. Porsche understands this well, which explains the broad mix of trims across much of its range. Now the electric Cayenne gains another variant called simply the S.

Unveiled as the third member of the family, it sits between the base model and the Cayenne Turbo Electric. Even so, it still delivers the sort of power and pace normally associated with something far less practical.

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On paper, at least, the numbers are strong. The dual-motor all-wheel-drive setup produces 536 hp (400 kW) in normal operation and up to 657 hp (490 kW) when Launch Control is activated. That’s enough to send the large electric SUV from 0–60 mph (0-96 km/h) in just 3.6 seconds, with a top speed of 155 mph (250 km/h). That’s serious oomph for a large family hauler, and Porsche managed it by borrowing a bit from the top trim.

In comparison, the base Porsche Cayenne Electric produces 435 hp. Engage the overboost function and it will run from 0-60 mph in 4.5 seconds, cover the quarter mile in 13.2 seconds, and eventually top out at 143 mph (230 km/h).

Both electric motors are permanent-magnet synchronous units, and the rear one uses direct oil cooling to manage heat under heavy loads. Unlike most EV motor cooling systems, Porsche’s setup extracts heat directly from current-carrying components. That helps the car sustain performance through better efficiency. The rear inverter also uses silicon-carbide semiconductors that can handle a current of up to 620 amps.

Those looking to really make their new Cayenne S shine can add a few different packages, including Porsche Active Ride suspension, Porsche Torque Vectoring Plus, Porsche Ceramic Composite Brakes, and the Sport Chrono Package with push-to-pass. Notably, that last one boosts output by an additional 120 hp (90 kW) for up to ten seconds.

Charging And Design

The Cayenne S is not only quick off the line. It is also fast at the charger. It uses a 113 kWh battery pack that can charge from 10 to 80 percent in under 16 minutes when connected to a suitable high-speed charger, matching the base model.

The system supports charging speeds of up to 400 kW. The vehicle features a NACS-style connector on the driver’s side and a J1772 port on the passenger side, while a a CCS adapter is also provided with each vehicle. The automaker has yet to confirm the driving range.

Visually, the S gets model-specific touches such as Volcano Grey Metallic trim on the front and rear fascias and 20-inch Cayenne S Aero wheels. Buyers can choose from 13 exterior colors along with multiple interior customization options. One new personalization option is the “Interior Style Package,” a curated design from Porsche Exclusive Manufaktur that mixes black leather with green accents and matching stitching throughout the cabin.

How Much Does It Cost?

The new Cayenne S Electric is now available to order, priced from $126,300 before a $2,350 delivery fee, with U.S. deliveries expected to begin in late summer 2026. That’s $17,300 more than the base Cayenne Electric. Porsche has also confirmed the 1,139 hp Cayenne Electric Turbo, which is due to arrive later this summer at a price yet to be announced.

Porsche is marking 75 years in Australia with a quartet of bespoke models inspired by some of the country’s most recognizable landscapes. Consider it both a birthday celebration and a (costly) reminder that Porsche’s customization department can turn just about any idea into paint, leather, and expensive options.

Debuting at the Australian Grand Prix in Melbourne this weekend, the collection spans the Panamera, Taycan, Macan, and Cayenne, highlighting the customization possibilities offered by Porsche Exclusive Manufaktur and the Sonderwunsch program.

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Interestingly, these are far from being strictly one-off specials. Customers can actually recreate the same specifications through Porsche’s official configurator, assuming they are willing to spend enough time clicking through options and, of course, paying for them.

Go North With The Panamera

The first model is based on the Porsche Panamera 4 E-Hybrid, finished with a livery inspired by the rainforests of Queensland and the Northern Territory. The exterior wears Emerald Green Metallic paint, paired with Neodyme 21-inch wheels and bright Acid Green accents on the brake calipers and hybrid emblems.

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Inside, the Club leather upholstery comes in Espresso with Night Green stitching, Neodyme accents, and Eucalyptus wood trim. The sedan also receives illuminated scuff plates with “Go North” lettering, a matching key, and 75th anniversary floor mats. For added practicality, it is also fitted with the optional Porsche Performance roof box, just in case the rainforest theme inspires an actual road trip.

Go East With The Taycan

The second model is based on the electric Taycan 4S Cross Turismo. Drawing inspiration from the surf culture of Australia’s Pacific coast, places like Noosa, Byron Bay, Newcastle, and Sydney, it wears an Ipanema Blue Metallic finish. The high gloss black 21-inch alloy wheels feature Crayon aero blades meant to evoke coral formations, while the Glacier Iceblue daytime running lights mirror the irises of the Pacific Blue Eye fish.

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The beach theme continues inside the cabin, where a mix of Black and Crayon leather echoes what Porsche describes as “the warm sands and shade of Australia’s eastern beaches.” References to the sea show up in the Dark Night Blue leather seat inserts and the Speed Blue stitching. The EV is also fitted with a panoramic roof featuring Variable Light Control, aluminum roof rails, a bespoke key, and illuminated scuff plates.

Go West With The Cayenne

The first SUV of the group is based on the V8-powered Cayenne S and draws inspiration from the vast open spaces of Western Australia’s Outback, terrain that dates back around 4.4 billion years. The exterior is finished in Ipanema Brown Metallic, paired with white decals and silk gloss black 22-inch alloy wheels.

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The model is fitted with the optional Off-Road package, which adds rock rails, skid plates, extra underbody protection, and even a compass mounted on the dashboard, presumably for when the road disappears altogether. It also gets aluminum roof rails carrying a roof box.

Inside, Black leather is paired with Bordeaux Red inserts meant to echo indigenous rock formations. Like the other special editions, it also receives unique floor mats, keys, and illuminated scuff plates.

Go South With The Macan

The final car in the set is the fully electric Macan 4S, styled as a tribute to the southern coastlines of Victoria, South Australia, and Tasmania. Its Gold Bronze Metallic paint is meant to mirror the cliffs along the Great Ocean Road, while the 22-inch RS Spyder wheels, finished in Vesuvius Grey, nod to the region’s rugged stone formations.

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The electric SUV also gets the Off-Road Design package, which brings Vesuvius Grey skid plates into the mix. Glacier Blue accents appear in the Matrix LED headlights and along the taillight strip. Inside, the cabin references South Australia’s volcanic landscapes with Black and Chalk Beige leather, punctuated by orange highlights across the seat centers, seatbelts, door cards, and dashboard.

Curiously, Porsche Australia’s 75th anniversary collection arrives without a 911. Still, when the theme revolves around the four cardinal directions, the math rather limits your options.

Porsche Australia