The all-new Macan EV and the first-ever hybrid 911 are among the luxury brand’s latest offerings
Porsche, the German luxury carmaker, is known for its sports cars. But while the brand is synonymous to that, it’s more than just about offering the world top-notch automobiles. As emphasized by Dr. Oliver Blume, chairman of the Board of Management of Volkswagen AG and chairman of the Board of Management of Dr. Ing. h.c. F. Porsche AG, at the Icons of Porsche event in Dubai, Porsche is also all about emotions and dreams — things that “connect people across generations and continents.”
In this interview, Dr. Blume talks about the brand’s legacy and its future direction now that the industry embraces more hybrids and electric vehicles. He also discusses the importance of events like Icons of Porsche in bringing the global community together.
How has the year been for Porsche globally?
This year was a very challenging one in terms of products. We had the biggest product offensive in the history of our company with five new model lines. I’ve been in the automotive industry for 30 years, and I can say it was a lot of pressure. But I also have to say great work by the team.
We had the new Cayenne, the new Taycan, and the new Panamera, which is a completely new car. Then we have the all-new Macan EV, and, finally, a new 911. For the first time in history, it’s a hybrid. This is all very positive — we have the youngest product portfolio in history with internal combustion engine (ICE) models, hybrids, and fully electric cars.
Overall, I think we are very well prepared for the eventual transition in the automotive industry. Different regions of the world require different products, and they move at different speeds. China, Europe, North America, and the Middle East all behave differently. If we consider the region, more specifically, Porsche Exclusive Manufaktur has proven to have performed very well year over year.
How do you see Icons of Porsche potentially expanding globally to other markets?
Porsche is a product, but for us, it’s all about the people and the community the brand stands for. When you buy a Porsche, you also buy into a community. As a brand, we have a lot of events around the globe, and I see great potential for this event to even grow bigger and better than what it has become.
Porsche has always been all about fascinating sports cars, and just as much about emotions and dreams that connect people across generations and continents. All of this comes together at Icons of Porsche in a truly unique way.
How do you see the advancement of electric cars across the globe and how far are we from seeing Porsche go completely EV?
There is no doubt the industry is going through a period of transformation. Let’s take the Taycan and the new electric Macan for example. These cars have proven to be immensely popular. The overall potential for EVs is huge, but the rate of transition differs region by region.
There is no denying electromobility will be the future of the automotive industry. We at Porsche are flexible and prepared to offer our clients products from both portfolios, internal combustion, hybrid, and EV. We are constantly improving our ICE models and there’s still a lot of potential to do so. When it comes to fully electric cars, the market in China is a good indication that when all the conditions are right — good products, the right pricing, the charging infrastructure, low energy costs, and legislative support — then the future is electric. In China, we already have over 50 percent of new car sales in the new energy vehicle category.
I also want to stress that when using renewable energies, the direction largely depends on the type of energy mix that is available in the respective regions of the world. At Porsche, we are aiming for a decarbonized future with a very ambitious target: to be CO2-neutral by 2030.
When it comes to going completely EV, ultimately the customer decides. They must be convinced. The journey starts with the product and ends with all the conditions. In China, for example, we are very close to a completely EV-dominated market by 2030 (currently it’s at 70 percent). I’d like to add that hybrids play a role in transforming combustion engine cars with plug-in hybrids. For full EVs, range extenders decrease the hurdle for customers to choose electric cars over ICE. This is particularly applicable for the US where people love to drive hundreds of miles.
Regions of the world matter. It’s key to unlocking where the unlimited renewable energy is ample. In the Middle East, it’s solar energy. In South America and Chile, we have wind energy. Looking at consumer behavior, in Brazil and India, for example, the highest-segment customers are prepared to go for electro-mobility because it’s cool, it’s modern, and it’s new; whereas in the Middle East, sustainability plays a huge role.
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What is your take on the rise of these Chinese car brands, and when do you think they will catch up to Western competition?
I am very familiar with China. I’ve worked there on several projects during my career. I actually went to university in China as well. As Volkswagen Group, we have a lot of business there. We have over 90,000 employees, 30 plants, more than 9,000 suppliers, as well as over 3,000, dealer partners. We are very closely linked to the market.
The speed of innovation and technology in the Chinese automotive market is tremendous. They have a lot of qualified, ambitious, and positive spirited workforce. They love innovation and always want to be the best. The Chinese have learned how to build very good cars in the past few decades. The German industry supports bringing mobility to China. In broader terms, the Chinese have largely focused their industry on full electro-mobility and intelligent car in line with the demand of the customer base. They like in-car entertainment, streaming, WeChat, and an array of applications.
Having said that, Porsche remains in the luxury segment, which the Chinese automakers have not penetrated yet. And this isn’t just about building cars that are luxurious and fast. To build a brand takes decades. And therefore, I think, as Porsche we have to focus on our heritage and build on it. We have to stay ahead of the technology curve as well as offer our customers a sense of community.
Which markets have you seen exponential growth for Porsche?
Let’s look at the numbers from 2010. We sold 700 units in Korea. And last year, the number was more than 10,000. In Brazil, for instance, we sold 1,000 units in 2010. And last year, it was more than 5,000. Take these numbers into account, considering we build around 300,000 cars a year.
Saudi Arabia is another example. Five years ago, we had barely any female customers. Since 2017, with females being allowed to drive, they now make up more than 20 percent of our customers, and they mainly buy 911s. To sum it up, at Porsche, we are creating dreams — and this is how we develop these markets.
