Technology
Why Porsche NA CEO Timo Resch is banking on ‘selection’ to survive the turbulent electric vehicle market
Timo Resch is basking in the sun. That’s literally true as we speak on a beautifully clear California day at Quail, one in every of the most prestigious events of Monterey Car Week. But it’s also true figuratively, because Resch, who took over as CEO of Porsche Cars North America (PCNA) last November, is in a excellent place professionally.
PCNA just reported its best quarter ever, with second-quarter sales up 13% compared to the same period in 2023. The brand has been showing regular momentum recently and comes at a critical juncture as Porsche pushes electrification in an increasingly uncertain market.
Porsche is set to launch its second EV, an all-electric version of the Macan SUV, the brand’s most inexpensive model. It shall be followed shortly by an all-electric version of the 718, the brand’s most inexpensive sports automobile. These cars come hot on the heels of the new-generation 911, available as a hybrid for the first time, and the recent Panamera, which now generates much more power and range thanks to a redesigned plug-in hybrid system.
Sitting between a snow-white Macan Electric and a brilliant purple Taycan Turbo GT, Resch calls it “the biggest remapping of the product portfolio that we’ve ever done.” The push for electrification is ongoing, however it’s lost some steam recently. The company previously planned to be 80% electric by 2030; but just last month, Porsche hit the brakes and he told Reuters this goal is currently “dependent on customer demand.”
Resch is pragmatic about the situation, saying the company’s core mission is simply to give customers what they need. “I think the market will tell us, the customers will tell us. To have options and choices, that’s what Porsche is all about,” he says.
The recent, battery-powered Macan shall be a test of that theory, since it doesn’t replace its combustion-engined predecessor but complements it. “We have the Macan Electric and, in the foreseeable future, the Macan ICE (combustion engine),” says Resch.
Initially at the least, electric and petrol versions of the Macan shall be available at the same time. They will sit side by side in showrooms, each competing for purchasers’ attention.
Resch declines to provide official numbers on pre-orders or shows of hands for the Macan Electric, but says interest is in step with regional trends. “If you look at the map, there are states in the United States where electrification is really taking off. They have good infrastructure. There’s a lot of demand. There are other states where it’s a little slower,” he says.
The electric Macan will first be presented at two US Porsche Experience Centers in Los Angeles and Atlanta, where interested parties will find a way to see for themselves whether this electric SUV lives up to the expectations placed in it.
“Our dealers and customers are very excited to finally see this car, get behind the wheel and test drive it,” Resch says.
Software problems
Resch’s emphasis on “finally” follows the somewhat troubled development the electric Macan has undergone on its way to production. A series of software development issues have delayed the rollout of the all-electric SUV, built on the PPE platform that can even underpin the upcoming Audi Q6 E-Tron.
Software has been a contentious issue inside Volkswagen Group (Porsche’s parent company) for years, largely over the troubled Cariad division, which has been suffering from internal delays. Those struggles led, at the least partially, to a recent $5 billion investment and three way partnership with Rivian that can give VW access to the startup’s software stack.
Porsche is also mixing its code base with Google and Apple. While General Motors is pushing mobile integration aside, taking more of the user experience in-house and keeping smartphone projection options at bay, Porsche is moving toward deeper mobile integration.
Resch says Porsche will all the time develop its own automobile interfaces—infotainment systems which might be easy to use and comprehensive when it comes to functionality. “But at the same time, if customers want to have other choices, we will provide them with those options,” he says.
Turning to Apple and Google
This means future Porsche dashboard experiences with native Android apps, while also providing increasingly deep Apple CarPlay integration. Soon, your iPhone will find a way to reach beyond the automobile’s central touchscreen with its whiskers, even taking control of the instrument cluster behind the steering wheel.
“Of course, we have a proven, long-standing relationship with Apple. We have a very good exchange of views on where the industry is going. And for that reason, it’s good to align with them, because we know that Apple itself is also very customer-centric, very customer-focused,” Resch says. “But that doesn’t mean we’re locked into anything.”
Again, Resch says it’s customer demand that’s driving Porsche to work more closely with the Cupertino tech giant. “We have a pretty high share of Apple users,” he says.
Apple is subsequently seen as a secure partner for the brand, but there is one area where Resch is not keen on forming alliances: politics.
I ask Resch about the increasingly tense political situation surrounding electric vehicles in the U.S. market. It’s the only time he stops his quick answers and takes a moment to consider his answer.
Finally, he returns to his mantra: “I think that we, as a brand, are best advised to always offer a choice,” he says. “There really needs to be more choice for customers with different variants, so that they can really choose. That’s what they’ve become accustomed to in the automotive market. That’s what they’ve become accustomed to in Porsche. And if you give them a choice, they’ll naturally find their way, too.”
Technology
Flipkart co-founder Binny Bansal is leaving PhonePe’s board
Flipkart co-founder Binny Bansal has stepped down three-quarters from PhonePe’s board after making an identical move on the e-commerce giant.
Bengaluru-based PhonePe said it has appointed Manish Sabharwal, executive director at recruitment and human resources firm Teamlease, as an independent director and chairman of the audit committee.
Bansal played a key role in Flipkart’s acquisition of PhonePe in 2016 and has since served on the fintech’s board. The Walmart-backed startup, which operates India’s hottest mobile payment app, spun off from Flipkart in 2022 and was valued at $12 billion in funding rounds that raised about $850 million last 12 months.
Bansal still holds about 1% of PhonePe. Neither party explained why they were leaving the board.
“I would like to express my heartfelt gratitude to Binny Bansal for being one of the first and staunchest supporters of PhonePe,” Sameer Nigam, co-founder and CEO of PhonePe, said in a press release. His lively involvement, strategic advice and private mentoring have profoundly enriched our discussions. We will miss Binny!”
Technology
The company is currently developing washing machines for humans
Forget about cold baths. Washing machines for people may soon be a brand new solution.
According to at least one Japanese the oldest newspapersOsaka-based shower head maker Science has developed a cockpit-shaped device that fills with water when a bather sits on a seat in the center and measures an individual’s heart rate and other biological data using sensors to make sure the temperature is good. “It also projects images onto the inside of the transparent cover to make the person feel refreshed,” the power says.
The device, dubbed “Mirai Ningen Sentakuki” (the human washing machine of the longer term), may never go on sale. Indeed, for now the company’s plans are limited to the Osaka trade fair in April, where as much as eight people will have the option to experience a 15-minute “wash and dry” every day after first booking.
Apparently a version for home use is within the works.
Technology
Zepto raises another $350 million amid retail upheaval in India
Zepto has secured $350 million in latest financing, its third round of financing in six months, because the Indian high-speed trading startup strengthens its position against competitors ahead of a planned public offering next yr.
Indian family offices, high-net-worth individuals and asset manager Motilal Oswal invested in the round, maintaining Zepto’s $5 billion valuation. Motilal co-founder Raamdeo Agrawal, family offices Mankind Pharma, RP-Sanjiv Goenka, Cello, Haldiram’s, Sekhsaria and Kalyan, in addition to stars Amitabh Bachchan and Sachin Tendulkar are amongst those backing the brand new enterprise, which is India’s largest fully national primary round.
The funding push comes as Zepto rushes so as to add Indian investors to its capitalization table, with foreign ownership now exceeding two-thirds. TechCrunch first reported on the brand new round’s deliberations last month. The Mumbai-based startup has raised over $1.35 billion since June.
Fast commerce sales – delivering groceries and other items to customers’ doors in 10 minutes – will exceed $6 billion this yr in India. Morgan Stanley predicts that this market shall be value $42 billion by 2030, accounting for 18.4% of total e-commerce and a pair of.5% of retail sales. These strong growth prospects have forced established players including Flipkart, Myntra and Nykaa to cut back delivery times as they lose touch with specialized delivery apps.
While high-speed commerce has not taken off in many of the world, the model seems to work particularly well in India, where unorganized retail stores are ever-present.
High-speed trading platforms are creating “parallel trading for consumers seeking convenience” in India, Morgan Stanley wrote in a note this month.
Zepto and its rivals – Zomato-owned Blinkit, Swiggy-owned Instamart and Tata-owned BigBasket – currently operate on lower margins than traditional retail, and Morgan Stanley expects market leaders to realize contribution margins of 7-8% and adjusted EBITDA margins to greater than 5% by 2030. (Zepto currently spends about 35 million dollars monthly).
An investor presentation reviewed by TechCrunch shows that Zepto, which handles greater than 7 million total orders every day in greater than 17 cities, is heading in the right direction to realize annual sales of $2 billion. It anticipates 150% growth over the following 12 months, CEO Aadit Palicha told investors in August. The startup plans to go public in India next yr.
However, the rapid growth of high-speed trading has had a devastating impact on the mom-and-pop stores that dot hundreds of Indian cities, towns and villages.
According to the All India Federation of Consumer Products Distributors, about 200,000 local stores closed last yr, with 90,000 in major cities where high-speed trading is more prevalent.
The federation has warned that without regulatory intervention, more local shops shall be vulnerable to closure as fast trading platforms prioritize growth over sustainable practices.
Zepto said it has created job opportunities for tons of of hundreds of gig employees. “From day one, our vision has been to play a small role in nation building, create millions of jobs and offer better services to Indian consumers,” Palicha said in an announcement.
Regulatory challenges arise. Unless an e-commerce company is a majority shareholder of an Indian company or person, current regulations prevent it from operating on a listing model. Fast trading corporations don’t currently follow these rules.
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