Porsche aims for higher profit with tailored models, EVs

German premium carmaker Porsche AG has started an ambitious program to ensure a long-term profit goal.

With the program called Road to 20, the Stuttgart-based carmaker said on Monday that it is aiming for an operating return on sales of more than 20 percent in the long run.

Porsche made public the program as it released the results of a financial year with four new records for the carmaker.

Porsche's sales revenue in 2022 reached 37.6 billion euros ($40.31 billion), up 13.6 percent year-on-year.

Its operating profit was 6.8 billion euros, exceeding the previous year's figure by 1.5 billion euros.

Porsche's deliveries and automotive net cash flow also reached new all-time highs in 2022, and its operating return on sales rose to 18 percent last year from 16 percent in the previous year.

The carmaker said it will push forward its strategy of modern luxury.

"We will also continue to focus on limited editions and expand our Sonderwunsch program in the future," said CEO Oliver Blume.

The Sonderwunsch program was set up in the 1970s to cater to car buyers' personalization demands.

The carmaker is also accelerating its electrification shift. Following the Taycan, an electric Macan will be available to customers in 2024.

An electric 718 is planned for the middle of the decade, and it will be followed by an all-electric Cayenne.

Porsche said more than 80 percent of its new vehicles in 2030 will be electric ones.

The carmaker is also planning to expand its product portfolio upwards with an all-electric SUV positioned above the Cayenne.

This new vehicle concept is designed to offer strong performance and automated driving functions, along with a completely new experience inside the vehicle, said Porsche.

"We are thereby underlining and strengthening our sporty luxury positioning. We are observing growing profit pools in this segment, in particular in China and the United States," said Blume.