EV Exit Strategy: Porsche Shuts E-Bike Unit to Refocus on Core Automotive Tech

German luxury carmaker Porsche has announced the closure of its high-performance electric bicycle (e-bike) division. The decision was taken in response to significant changes in market conditions and to sharpen focus on its core business—automobile manufacturing. The company confirmed the move in a press release on Saturday.

Porsche had launched the specialized unit, Porsche eBike Performance, in August 2022 with the goal of developing world-class e-bike motors and battery systems. However, within just four years, the company has decided to shut down the division. As a result, factories in Ottobrunn, Germany, and Zagreb, Croatia, will be closed, and approximately 350 employees will lose their jobs.

During its short tenure, Porsche introduced several premium e-bikes to the market. Among them, the “eBike Sport” for road use and the “eBike Cross” for off-road terrain gained notable attention. In particular, the “eBike Sport” reached its fifth generation, with a starting price of USD 10,920 (equivalent to more than Tk 1.3 million in Bangladeshi currency).

Porsche is not only shutting down its e-bike division but is also winding down operations of its battery cell manufacturing company Cellforce Group and software firm Citiq. Porsche CEO Michael Leiters said the company aims to return to its core business model. As part of this strategic shift, Porsche has also sold its shares in Bugatti Rimac and Rimac Group.

According to analysts, intensifying competition in the automotive market and the need for substantial investment in advancing proprietary electric vehicle (EV) technologies are driving Porsche to withdraw from its non-core business segments.

DBTech/BMT/OR