Porsche 911 becomes the most profitable car of the year

Porsche 911 becomes the most profitable car of the year

When the eighth-gen Porsche 911 (also known as Porsche 992) was launched earlier this year, no one would have thought that it will become the most profitable car of this year. Although the car has the lowest base price in the family, a range of attractive add-ons has made this car the most profitable car of 2019 surpassing names such as Aston Martin DBX and Ferrari F8 Tributo.

Porsche 911 Front

According to Michael Dean, the analyst of Bloomberg, "It's a very simple calculation: The 911 is very profitable in its own form, and when you add the variations, the margins became immense." In other words, there are a lot of pricey but popular additions to the Porsche 992's base price of $97,400. These things include ceramic brakes and turbocharging. These facts make it the highest profit-generating sports car of the world, contributing to 47% profit margin and a staggering 29% of Porsche's revenue (worth $2.47 million) despite only 11% of the total sales. Michael Dean also adds that if someone assumes that the company sells 10,000 Turbos, GT3 and Turbo S's, just the Turbo variants of the 911 alone could actually make a profit of half a billion dollars for the company. 

Porsche 911 Side

According to the experts, the sales of Porsche's iconic coupe based model will help in investing $6.6 billion to the Porsche Taycan, which has been launched last week. The company has set the goal of producing 20,000 to 30,000 units of the said electric supercar, and it won't be a surprise if the company starts offering turbo-version of the 911, which yields a higher profit margin. The only car that has made more profit is the Ferrari F8 Tributo. The model has a jaw-dropping profit-margin of 50%. But it is limited to only 50 units, which makes it 17% of the total revenue maker of the Italian supercar brand. 

Porsche 911 Rear

With a strengthened foothold in the growing Chinese car market, Porsche is looking to have further growth despite a slowdown in the European car market. Porsche's 911 has an iconic status throughout the world, and hence, we can pretty much say that the company is just getting started. 

Also Read: 2020 Porsche 911 Carrera 4 comes with all-wheel-drive

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