Lotus slashes EV sales target by 78% due to new US tariffs

Lotus Technology has drastically lowered its sales targets after being hit by additional tariffs in key markets for its China-built electric cars.

The Geely-owned luxury brand now expects to sell 12,000 cars globally this year, 78% down on its previous target of 55,500. For next year, the revised target is 30,000, down from 76,000.

The decision by the US to impose 100% import tariffs on Chinese-built EVs has “dramatically affected our forecast”, Group Lotus CEO Qingfeng Feng said on the company’s second-quarter earnings call of 28 August.

EU tariff increases will also hit sales, Feng added.

As a brand, Lotus sold a record 4873 cars in the first half of the year globally, split evenly between the Eletre electric SUV and the Emira petrol sports car, which is made by UK-based Lotus Cars.

Lotus Technology posted an operating loss of $438 million (£332m), compared with $344m (£261m) over the same period last year.

The US was the largest market for Lotus in the first half of 2024, accounting for around a quarter of its sales. Sales were predominately the Emira, with the Eletre and Emeya electric saloon yet to be launched there. 

Lotus will “relaunch or reposition [its] product in Europe” toward the end of the year in response to the tariffs, Feng said, adding: “Specifically in Europe, we are thinking about launching different variants."

Lotus has been looking to bolster its average selling price with special editions such as the Chinese-market Emeya Blossom Enchantment, which features 42 natural sapphires and showcases some of the firm's new Chapman Bespoke extras.

“The company will keep price discipline to protect our brand equity, value and desirability,” Feng said.

It's planning to increase Emira prices after demand proved higher than supply, he added. 

In addition to increased tariffs, Lotus has been hit by a muted global demand for high-end EVs. This same issue recently caused Mercedes-Benz to cancel a new dedicated platform for high-end EVs.

Feng also referenced a 50% drop in the overall Chinese luxury car market.

“We are also in the process of recalibrating our product strategy to explore ways for faster and easier go-to-market globally,” Feng said.

Lotus Tech would cut staff and streamline operations in its goal to hit profitability in two years as part of its new Win26 strategy, he added.

Sales will be bolstered by the launch of a new mid-size electric SUV, now due for launch in 2025, with sales starting in 2026. Its technology will be revealed at the Guangzhou motor show in November, Feng said.