Porsche is to raise prices by up to £50,000 as the struggling German luxury brand seeks to go further upmarket.
The automotive giant on Wednesday said the 20pc increase for its most expensive models would allow it to boost profits while selling fewer vehicles.
It is now aiming to break even while selling fewer than 200,000 vehicles per year, compared with around 280,000 previously.
Michael Leiters, the chief executive of Porsche, said the shake-up would make the cars feel more exclusive.
He said: “We want to further elevate our positioning, protect the exclusivity of Porsche and gain pricing power.”
Porsche’s planned changes come amid tumbling sales in China, weaker-than-expected demand for electric cars and a slump in profits. Volkswagen (VW), its parent company, faces similar challenges.
The change will see the average price of the marque’s top-end cars increase from €270,000 (£228,000) to €330,000.
These high-end vehicles will also go from making up around one third of Porsche’s line up to 45pc, the company said.
In the UK – where its best-selling models include the 911 sports car and the Cayenne SUV – the increase could see the price of a 911 Turbo S Cabriolet jump from about £209,000 to £251,000.
Meanwhile, Mr Leiters announced more lay-offs as he set out plans for a “smaller but stronger and more resilient business”.
Porsche will cut its workforce by a quarter by 2030, he said, on top of 9,000 job cuts already announced.
Some 40pc of management roles will be axed as part of this restructuring.
Porsche is also cutting back its presence in China, which used to contribute more than 33pc of its total sales but now makes up barely 15pc.
With demand for electric cars still below earlier expectations, Mr Leiters said the company intended to continue making combustion engine cars for the foreseeable future as well.
There would be “no turning our backs on electric power”, he stressed, but said the Porsche 911 “will never be electric”.
Separately on Wednesday, it emerged that VW is bracing for a £725m compensation bill for mis-sold car finance in the UK.
In what would be one of the biggest blows to a manufacturer from the car finance scandal, the company’s UK subsidiary said it had collapsed from a £136m profit to a £486m loss in 2025, after booking a £725m provision for potential legal costs.
VW, which is one of three firms fighting compensation claims, said there was also a risk the sum could increase.