Facing sluggish demand for electric vehicles and a 40% drop in sales through the first three quarters of 2023, British automaker Lotus is reevaluating its ambitious plans for an all-electric future [1]. The Geely-owned manufacturer, wich previously aimed to be fully electric by 2028, will now prioritize extended-range plug-in hybrid models beginning in 2026 [2]. This strategic shift reflects a growing trend within the automotive industry as manufacturers adjust to the pace of EV adoption.
British automaker Lotus, majority-owned by Chinese firm Geely, is reassessing its full transition to electric vehicles amid sluggish demand for luxury EVs.
A fully electric future for the automotive industry remains a long-term prospect, not an immediate reality. Automakers are increasingly acknowledging this, and Lotus is the latest to adjust its strategy. The British manufacturer, backed by a majority stake from Chinese holding company Geely, had previously been directed toward an all-electric future.
In 2021, plans included new dedicated factories and a complete break from its heritage of lightweight sports cars. The Eletre and Emeya models were intended to set new standards for the brand, but the market for luxury electric vehicles has proven smaller and slower to grow than anticipated – even in key target markets. As a result, the company reported global sales of just 4,612 vehicles for the first nine months of this year, a 40% decrease compared to the same period in 2023.
In response, Lotus is recalibrating its electrification strategy. The company now plans to introduce a plug-in hybrid version of its Eletre SUV next year, followed by a smaller SUV with a combined powertrain in 2027. This shift reflects a broader trend among luxury automakers, as the transition to all-electric vehicles proves more complex and costly than initially projected.
Lotus intends to emulate the approach taken by Lamborghini and Bentley, both of which combine internal combustion engines with plug-in hybrid technology. These brands are primarily focused on enhancing performance rather than solely reducing emissions, a strategy that is less scrutinized given their limited production volumes and high price points.
Lotus Emeya
• Source: Lotus
Leveraging access to Chinese technology, Lotus aims to deliver a high-performance plug-in hybrid system based on a 900V charging network, enabling rapid battery charging.
The plug-in hybrid Lotus Eletre will launch first in China, the world’s largest automotive market and the leading adopter of electrified vehicles. Alongside this, and the aforementioned smaller SUV, Lotus will also introduce a significantly electrified version of its Emira sports car in 2027.
Source: Autoblog, photo and video: Lotus
