After an onslaught of electric vehicle launches, automakers are beginning to pull back from the EV-only mentality amid waning sales growth in EV segments. The slowdown is being felt particularly strongly by luxury brands, and now Porsche is the latest to announce that it will recommit to the development of gas-powered cars, as reported by Automotive News Europe.

“There is a clear trend in the premium luxury segment in the direction of combustion-engine cars, therefore we will react in our product cycle,” Porsche’s CFO Lutz Meschke said, per AN Europe’s report. Porsche is experiencing the luxury EV sales stagnation firsthand, with the Taycan registering 3394 units through the third quarter of 2024, a 35 percent decline versus the previous year. In China, a hugely important market for EVs, Porsche’s overall sales slid by 29 percent through September. “We see steep ramp-up curves for the BEVs in China, but luxury is still missing within the segment,” explained Meschke.

As a result, Porsche will refocus on the development of internal-combustion powertrains. “We are currently looking at the possibility of the originally planned all-electric vehicles having a hybrid drive or a combustion engine,” said Meschke. “We are currently in the middle of making conceptual decisions. What is clear is that we are sticking with the combustion engine for much longer.”

Porsche has already launched the second-generation Macan exclusively with electric powertrains, but the gas-powered first generation will live on in certain markets such as the United States. Porsche also said that development will continue for gas-powered versions of the Cayenne SUV and Panamera sedan.

The Macan, which has been Porsche’s bestseller, could be a strong contender to be rethought with a hybrid or gas powertrain if the electric model does not capture the same sales totals as the first generation. Porsche is also working on an electric full-size SUV that will sit above the upcoming Cayenne EV. This new flagship model could be a prime candidate for a hybrid setup, as well as the upcoming electric Boxster and Cayman sports cars.

Porsche had previously aimed to have half of its sales be EVs and plug-in hybrids by 2025 and 80 percent of its worldwide sales be EVs by 2030. Porsche’s EV sales should rise in 2025 as sales of the Macan EV get fully underway alongside the refreshed Taycan.