On Tuesday, February 9, Porsche AG announced that it would expand spending on promoting digital services and products to complement its luxury sports cars. Volkswagen Group's most profitable brand intends to lure more tech-conscious customers. This way, Porsche AG wants to increase its sales in Asian markets with the focus on China.
Citing Chief Financial Officer Lutz Meschke, the company plans to raise investment in the digital equipment to €900 million this year from €800 million in 2020. In parallel, the car manufacturer invests almost €150 million annually in venture capital projects and startups.
"Despite the corona crisis, we haven't cut a single euro from investments in the future," Meschke said. "On the contrary: we really step on the gas." According to the Chief Financial Officer, the company endeavors to implement its innovative projects, including those related to digital technologies. The management is confident that a new range of hi-tech services and products will pump up its revenue.
Remarkably, Porsche AG survived the crisis in the global car industry induced by the coronavirus pandemic. The company owes its rapid recovery to a bounce in sales in China’s market and buoyant demand for Porsche Taycan. Back in 2020, Porsche AG reduced its global deliveries by 3.1% to 272,000 items. At the same time, sales of VW Group, the parent company of 12 European brands, tumbled by 15%.
