Lotus Technology, a subsidiary of sports car manufacturer Group Lotus that is majority-owned by Chinese automaker Zhejiang Geely Holdings, plans to transition to an all-electric brand by 2027 by releasing three new models over the following four years.
The fourth quarter saw the release of the business' first high-performance electric SUV, the Eletre, as it prepared to combine with a special-purpose acquisition company (SPAC) to list on the Nasdaq.
Shift to All-Electric Brand
According to the sources of the South China Morning Post (SCMP), over 5,000 individuals across the world have placed orders for the vehicle.
Prices in mainland China begin at 828,000 yuan (about $120,000), with the first shipments scheduled to begin this month. The US and international shipping plans are now being developed using the extensive Lotus distribution infrastructure.
An insider has revealed that the firm intends to release three additional battery-powered electric vehicles (EVs) over the following four years as the said industry grows rapidly in mainland China and internationally. It will begin with a sedan next year, followed by an SUV in 2026, and finally, a sports car in 2027.
The facility in Wuhan, the capital of central Hubei province, would produce all of the EVs, with a yearly output capacity of 150,000 units, as per the sources.
Entering the Premium Market
In contrast to Chinese EV manufacturers aiming for the mainstream market or medium range, Lotus is looking to enter the premium luxury car market.
Due to the effects of lockdowns and other Covid-19 restrictions on consumption, sales of high-end automobiles in China fell by 20% in 2022, according to Hurun Research. However, based on the data compiled by the China Passenger Vehicle Association (CPCA), EV sales increased by 114% to 6.4 million.
By 2023, experts predict that the number will have increased by 30%, reaching 8.4 million cars.
As per Hurun, the total value of the Chinese luxury market in 2021 was $230 billion, or a little less than the GDP of New Zealand. Luxury automobiles (those costing more than 500,000 yuan or $70,000) are only one example. Typical luxury items like clothing, jewelry, purses, and watches are also included.
Lotus Merger
The public offering of SPAC L Catterton Asia Acquisition Corp. in 2021 garnered $250 million, and Lotus Technology has agreed to partner with the company. As a result of the merger, the combined entity is now worth around $5.4 billion.
SPACs are fronts that use an initial public offering to finance the purchase of a private firm. The acquiring business may avoid the lengthy and costly process of going public by merging instead.
In 1948, the UK became the birthplace of the Lotus brand. Prior to the 80th anniversary of the company in 2028, it will have fully transitioned to producing just EVs.
