Porsche’s first all-electric sports car was a hit. But, nearly five years later, Taycan sales are falling amid new competition. Porsche is reportedly cutting Taycan output amid the sales slump. With the new Macan EV viewed as a beacon of hope, can Porsche turn things around?

Porsche introduced the Taycan, its first fully electric vehicle, in 2019. By 2021, the Taycan was Porsche’s best-selling model in Europe, topping the gas-powered 911 and Panamera.

In 2021, Porsche delivered 41,296 Taycan models, more than double the number from 2020. However, the explosive sales growth was short-lived, and Porsche has failed to top it ever since.

Porsche sold 34,801 Taycans in 2022 and another 40,629 models last year. Taycan sales fell 54% in the first three months of 2024. The drastic Q1 sales drop comes after Porsche introduced the upgraded 2025 Taycan in February.

With more range, faster charging, and more performance than ever, the new EV sports car is expected to help turn around slumping sales.

Despite this, local reports out of Germany suggest Porsche is still planning to cut Taycan output at its Zuffenhausen plant.

Porsche to cut Taycan EV output as sales slip

According to the German newspaper Stuggarter Zeitung, Porsche is slowing production at the plant to a one-shift operation.

Negotiations are underway with Porsche and the works council, but job cuts are reportedly not part of the plans. Porsche aims for a “structural change” in Taycan output.

Porsche does not want to slash prices following other automakers like Tesla to avoid damaging the luxury brand’s value. The report notes that although job cuts are not part of the plan, this could only apply to permanent employees.

A few weeks ago, Porsche chose not to renew several hundred temp employee contracts. CEO Oliver Blume believes the luxury brand will turn things around with a refreshed lineup.

According to Blume, Porsche is in a “V-shaped” sales cycle. Porsche is launching four new models in 2024, the most in brand history.

In addition to the upgraded Taycan, Porsche is launching the new 911 and Panamera, but the most important could be the all-electric Macan.

A beacon of hope

Porsche kicked off Macan EV production in May at its newly upgraded Zeipig plant. Deliveries are expected to begin in the second half of 2024.

Blume said the Macan already had 10,000 orders in March, “and these customers haven’t even been able to drive the car yet.”

Porsche’s sales slump is mainly concentrated in China, one of its most important markets. Sales fell 24% in China in the first quarter. According to the report, German luxury automakers face pressure in China as they struggle to gain traction in the world’s largest EV market.

Meanwhile, the new Porsche Macan EV offers “a beacon of hope” as it’s more likely to resonate with Chinese buyers.

Porsche’s electric SUV will reportedly use CATL batteries, which could help lower the cost, making it more competitive.

In the US, the electric Porsche Macan 4 will start at $78,800, while the Turbo model has an MSRP of $105,500 (not including delivery fee).