Porsche’s profit march continues as it begins 2014 on a positive note

Porsche, the world’s most profitable luxury car marquee of 2013, has started the new year on a great note. The company has sold about 38,663 vehicles in the initial three months of 2014 up by 4.5 per cent over the same period last year.

Porsche’s revenue has gone up by one fifth to about 3.93 billion Euros (Rs 32,737 crore) in the first quarter of the financial year. The German sports car maker showed a significant increase in operating profit of about 22 per cent to 698 million Euros (Rs 5,810 crore). Meanwhile, Porsche’s employee headcount which stood at 13,000 three years ago has exceeded the 20,000 mark in February 2014.

Matthias Müller, Chairman of the Executive Board of Porsche AG, explained the requirement of the substantial investments and development expenditures, amounting in each case to significantly more than one billion euro in the ongoing fiscal year: “We are focusing on fulfilling the promise of our brand – to offer the sportiest and technologically cutting-edge vehicles in our segments – on a long-term basis. The improvement of fuel efficiency as well as a responsible use of resources constitute integral parts of the strategy of Porsche.”

Looking at the development of the markets, Porsche’s CEO is convinced that the sports car manufacturer will continue to grow especially in its largest sales markets United States and China. Müller: “Overall, the sales of Porsche will rise once more in the 2014 fiscal year. The market launch of the Macan will give us an additional boost.”

Porsche’s steady increase in hiring at a time when the automotive market worldwide has faced a lull reflects the growth story of the company. The overall headcount Porsche worldwide stood at 20,416 by March 31, 2014, up by 15 per cent over last year same time. Under VW’s management the company has grown leaps and bounds and to further augment the growth it has new products like the Macan (declared sold out for 2014 according to rumours) lined up this year. In India, the Macan might be launched in mid 2014