Porsche initially saw great success with the Taycan, but it appears the initial excitement has waned. Reports suggest the German automaker is reducing production in Germany. According to the Stuttgarter Nachrichten, Porsche’s Zuffenhausen plant, which produces the electric sedan, is shifting to a single-shift schedule, down from the usual two shifts per day.
The reported production slowdown is due to a decline in demand for the Porsche EV. The company is negotiating with the German works council, ensuring no job cuts for permanent employees. However, contracts for temporary employees were reportedly not renewed a few weeks ago.
The Porsche Taycan was extremely popular in its early years. In 2021, it became Porsche’s best-selling model, with over 41,000 units sold, surpassing both the 911 and Panamera. Sales dropped in 2022 but picked up again at the end of 2023, although they did not reach the previous peak.
In the first quarter of 2024, Taycan sales fell by more than half, which coincided with the introduction of a refreshed version in February. The upcoming ultra-powerful Taycan Turbo GT may see the demand boost.
Porsche isn’t the only automaker feeling the impact of declining EV sales. The drop in demand, which started last year, has caused several manufacturers to reconsider their electrification strategies. Tesla, the current leader in EV sales, is also experiencing lower sales, leading the Texas-based company to reduce prices.
It’s still unconfirmed if Porsche’s decision to slow Taycan production is directly related to the decreased demand. The rest of the year will reveal if the model’s popularity improves. Additionally, the upcoming Macan EV might attract more EV buyers to the Porsche brand.