Macan expected to drive up sales and profits at Porsche image

The Germany based Porsche, owned by Volkswagen AG, has evolved from the very traditional sports car manufacturer into a sprawling luxury carmaker that makes its fortunes in the SUV segment.

And the new Macan compact SUV should bring even more sales and even more money to the company, as the market for luxury SUV’s is only set to increase, even in markets that have serious problems on other segments. The Macan, which looks and feels like a smaller scale Cayenne – the SUV that first appeared in 2002 and definitely saved Porsche from a gruesome fate.

“The Macan is based on the Audi Q5, and extensively re-engineered powertrain and steering. The Porsche engineers adjust aspects to improve driving dynamics and suspension. The Macan is potentially a massive money spinner for Porsche and will help to keep it as the most profitable small volume car maker,” said IHS Automotive analyst Tim Urquhart.

According to IHS, sales of the Macan – which is rolled across European markets now and hits US dealerships in September – are forecasted to reach almost 45,000 cars in 2014, and ultimately peak out at 90,000 units a year by 2022. Its main competitors are the Audi Q5 sibling, Mercedes GLK, Range Rover Evoque and Freelander, and the BMW X3 and X4.

Via Forbes