Lotus Turn Around: Full Electric Car Delayed, Gasoline and Hybrids Back in Again
JAKARTA - Lotus, the legendary British sports car brand now owned by China's Geely, is getting realistic. The full electric car strategy has been postponed. The company is back to giving space for hybrid cars and gasoline-powered sports cars.
According to a report by Yicai Global, quoted on Saturday, June 13, Lotus Technology CEO Feng Qingfeng said the change of direction was made due to the complicated market conditions. Lotus will only fully enter into electrification when the market is deemed ready.
In a letter to employees, Feng said Lotus would release the Emira 420 in the coming weeks. This model still uses an internal combustion engine, namely a gasoline engine like a conventional car.
Lotus is also preparing Type 135, a hybrid hypercar, in 2028. A hypercar is a very high-performance car, usually more extreme than a supercar. As for hybrid, it means a vehicle that combines a gasoline engine and an electric motor.
The change comes shortly after Lotus unveiled its Focus 2030 plan. In that plan, Lotus will take a more flexible path: continue to sell gasoline-powered cars, plug-in hybrid vehicles, and battery-based electric cars.
The target composition is around 60:40 between hybrids and battery electric cars in Lotus' electrification portfolio during the transition to full electrification.
Lotus shares on the Nasdaq under the code LOT closed down 3.4 percent to 1.43 dollars in New York.
Lotus has a long history. Founded in 1948, this brand was once among the world's top sports car manufacturers along with Porsche and Ferrari. However, financial problems made Lotus change hands, being acquired by General Motors in 1986, then Proton in 1996, before Geely took over in 2017.
After going under Geely, Lotus drew up a 10-year revival plan. The point: a full switch to electric vehicles and software-based smart cars by 2028. From there came electric models such as the Evija, Eletre, and Emeya.
However, the market for electric sports cars has not been as fast as expected. According to Lotus' annual performance report quoted by Yicai Global, the company's global sales fell 46 percent last year to 6,520 units. Revenue also fell 44 percent to 519 million US dollars.
The good news is that Lotus' net loss was reduced by 58 percent to 464 million US dollars. The improvement was helped by a better product mix and cost control.
Feng said Lotus would no longer pursue sales growth blindly. The focus is now on higher profit margins. Lotus is targeting to make a profit next year.
To keep costs down, Lotus will combine research, development and production of sports cars in the UK with an electrification platform and smart technology based in China.