Porsche Ventures into E-Bike Motor Manufacturing with New Factory in Croatia

Porsche is reportedly on the verge of finalizing plans to construct a factory in Croatia dedicated to producing electric bicycle motors, as per information from Jutarnji list. This development marks Porsche’s inaugural foray into industrial production in Croatia and represents its maiden greenfield investment in the region.

This strategic move unfolds in the wake of Rimac Group's announcement and commencement of construction of its factory near Zagreb, in Sveta Nedelja, reflecting a growing investment trend in the local mobility and automotive industry.

However, intricate details about this electric bicycle motor factory remain undisclosed. It is known that Porsche, considering its existing prestigious brands including FAZUA and itself, intends to amalgamate the technological advancements and expertise of Greyp Bikes under its umbrella, leading to the discontinuation of the Greyp brand.

This development comes two years post Porsche Group's acquisition of the startup Greyp Bikes through Porsche eBike Performance, representing one of the largest acquisitions in Croatia, with an estimated value of 100 million kuna, approximately 13.3 million euros.

Initially, Porsche had intentions to maintain the Greyp brand, a commitment that sustained until recently. In February, revelations from the German conglomerate indicated the removal of the Greyp brand from the commercial register, substituting it with Porsche eBike Performance. Further insights reveal the discontinuation of Greyp’s operations within Porsche eBike Performance.

The newly acquired entity, formerly Greyp, has been grappling with profitability issues, facing challenges in maintaining two distinct verticals. One, located in Germany, was dedicated to the innovation of electric vehicle propulsion systems, and the other specialized in the production and development of Greyp bicycles.

Porsche’s initiation of a factory in Croatia signals its strategic expansion into the electric bicycle motor domain, leveraging the acquired assets and expertise from Greyp Bikes. This consolidation and brand discontinuation represent Porsche's approach to integrate and optimize its operations in the burgeoning e-bike market, enhancing its product range while dealing with the profitability challenges encountered by its new acquisition.