Lotus Technology, the electric vehicle arm of British company Lotus Group, has announced its strategic focus on producing vehicles priced starting from $80,000, with no plans to enter lower-priced segments for volume sales. CEO Feng Qingfeng emphasized the importance of differentiation in the market, positioning the company’s models as smart electric “lifestyle” vehicles rooted in racetrack heritage.
The announcement came as Lotus Technology began trading on Nasdaq following a merger with L Catterton Asia Acquisition Corp, a special purpose acquisition company. The division, responsible for producing lifestyle vehicles carrying the Lotus marque in China, also handles the global sales of all Lotus vehicles, including those manufactured in the United Kingdom.
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Despite not disclosing specific sales figures for China, Feng acknowledged that the market performance fell short of expectations, citing supply chain disruptions affecting production. He noted that while electric vehicles accounted for 22 percent of total new vehicle sales, they only represented around 7-8 percent of the luxury vehicle segment priced over $80,000.
Feng remains optimistic about the Chinese market, expecting it to contribute 40 percent of Lotus’s sales by 2025. However, he highlighted a different trend in markets outside China, where the proportion of EVs is higher in the $80,000+ segment compared to the overall market.
Lotus Technology’s order book for its first electric SUV, the Eletre, and the mid-engined Emira sports car, both part of the Vision 80 strategy, stood at 17,000 units in the first half of 2023. The company aims to expand its presence globally, with plans to launch the Eletre in the United States in the third quarter.
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When asked about competing with Porsche, Feng stated that Lotus aims to achieve sales of 150,000 units by 2028, which is approximately half of Porsche’s 2023 sales. He acknowledged that this goal would place Lotus slightly behind Porsche but would mark the completion of their electric transition.
The sales target is part of Lotus Group’s Vision 80 strategy, a 10-year development plan unveiled in 2018 following Chinese conglomerate Geely Holding’s acquisition of a 51 percent stake in the British company, which was founded in 1948.
