Stuttgart: German sports car manufacturer Porsche, part of the Volkswagen Group, has lowered its forecasts due to challenges in China, US import tariffs, and weak demand for electric vehicles.
According to Qatar News Agency, the management now expects revenue for the current year to be between 37-38 billion euros (42-43 billion USD). Previously, the company had targeted revenue of between 39-40 billion euros. The target range for the operating profit margin has been reduced by 3.5 percentage points to between 6.5%-8.5%.
Last year, Porsche achieved revenue of 40.1 billion euros and an operating margin of 14.1%. The revised outlook reflects US tariffs on car imports from the EU, though initially only for April and May, given the volatile situation.
Porsche is also incurring additional costs, particularly due to its decision not to independently continue expanding high-performance battery production at its subsidiary Cellforce.