Porsche has confirmed that its upcoming three-row flagship SUV, originally expected to be an all-electric model, will instead launch with combustion and plug-in hybrid powertrains. The company revealed that slower-than-expected consumer adoption of electric vehicles has forced it to adjust its strategy. CEO Oliver Blume stated that Porsche must adapt to “new market realities and changing customer demands,” signaling a broader realignment of the brand’s future plans.
This decision reflects a major shift, as Porsche intends to maintain gasoline-powered variants of existing models while introducing new combustion-based vehicles, including the three-row SUV. The company has also delayed certain all-electric projects, including a next-generation EV platform being co-developed within Volkswagen Group, now expected sometime in the 2030s. Despite this, Porsche will continue to invest in its electric lineup, including the Taycan, Macan EV, Cayenne EV, and the upcoming electric 718, which executives have described as “brilliant.”
The SUV in question, internally codenamed K1, was first teased more than two years ago as part of Porsche’s long-term EV strategy. It was planned to debut in 2027 on Volkswagen Group’s new Scalable Systems Platform, which integrates combustion and electric powertrains. However, it remains unclear whether the switch to combustion power will affect its launch timeline. Porsche insists this adjustment will keep its product lineup competitive while meeting evolving customer expectations.
While enthusiasts may welcome the continuation of traditional engines, the move carries significant financial consequences. According to reports, the shift away from fully electric development will cost Volkswagen Group around €5.1 billion ($5.9 billion). Industry-wide challenges, such as tariffs, slowing EV demand, and volatile global markets, are pressuring automakers to rethink long-term strategies. Porsche’s recalibration illustrates the uncertain path ahead as legacy brands balance customer preferences with the transition toward electrification.
