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Porsche is officially exiting the electric bicycle market after nearly four years in operation.

The luxury German automaker announced plans to close Porsche eBike Performance GmbH, the subsidiary responsible for developing high-performance e-bike systems, motors, and battery technology.

Porsche Focused on Luxury Cycling Technology

According to Electrek, the shutdown will impact facilities in Germany and Croatia, resulting in approximately 350 job losses.

Porsche launched the division in 2022 as part of its effort to expand beyond traditional automotive products and enter the rapidly growing electric bicycle industry.

The e-bike subsidiary was created to design premium electric drive systems tailored for performance-focused cyclists.

During its brief run, Porsche introduced several high-end electric bicycles, including the Porsche eBike Sport and Porsche eBike Cross.

Among the lineup, the Porsche eBike Sport became one of the company's most recognizable cycling products. The model eventually reached its fifth-generation release despite carrying a starting price exceeding $10,000.

Porsche marketed the bikes as luxury alternatives for consumers seeking advanced performance, premium materials, and sleek automotive-inspired design.

Market Conditions Prompt Strategic Shift

While Porsche initially viewed electric bicycles as a promising expansion opportunity, changing market conditions and internal priorities appear to have influenced the decision to discontinue the business.

The closure is part of a larger restructuring strategy currently underway within the company.

According to Engadget, Porsche CEO Michael Leiters confirmed that the automaker will also shut down Cellforce Group GmbH, its battery cell subsidiary, as well as Cetitic GmbH, a software company connected to Porsche and the Volkswagen Group.

According to Leiters, Porsche intends to refocus resources on its core business operations amid evolving automotive and technology markets.

Porsche Continues Extensive Electric Vehicle Push

Despite scaling back several side ventures, Porsche remains committed to expanding its electric vehicle lineup. The Porsche Taycan remains a key pillar of the brand's long-term electrification strategy.

At the same time, the company has recently reduced investments outside its primary automotive business. Porsche previously sold its minority stake in Bugatti Rimac and also exited its smaller investment in Rimac Group after years of involvement with the electric supercar manufacturer.

Originally published on Tech Times