Lotus Addresses EV Slowdown Concerns: Shifts Strategy to Triple-Track Approach with ICE, Hybrid, and BEV

Recently, Lotus Group CEO Feng Qingfeng responded to external criticism regarding the company's slow progress in electrification. He stated that the current situation should not be defined as a failure. Since the launch of its Vision80 strategy in 2018, the actual pace of implementation has significantly lagged behind initial expectations. The company originally aimed for battery electric vehicles (BEVs) to account for 30% of total sales by 2026, but as of now, that figure remains below 10%. Feng noted that several European countries have revised their timelines for phasing out internal combustion engine (ICE) vehicles, and ultra-luxury brands such as Ferrari and Porsche are also reassessing their electrification strategies. For example, Porsche’s operating profit for fiscal year 2025 dropped from €5.64 billion to €413 million, with its return on sales plunging from 14.1% to just 1.1%. Ferrari, meanwhile, has lowered its target for BEV share by 2030 from 40% to 20% and delayed the launch of its second all-electric model to no earlier than 2028. In response to these industry-wide shifts, Lotus has pivoted from its original “full electrification by 2028” goal—announced in 2018—to a new “Focus 2030” strategy, adopting a three-pronged product approach encompassing ICE, hybrid, and pure electric vehicles. Feng emphasized that this strategic adjustment has been enabled by enhanced resource capabilities, particularly the introduction of the Luoyao super hybrid architecture, which offers greater flexibility in product planning. He also confirmed that Lotus is developing the Type 135, a large-displacement V8 hybrid model incorporating Formula 1 technology. On the international front, on May 6, 18 Eletre vehicles produced in Wuhan were shipped from Shanghai to Canada. This marks the first batch of premium Chinese-made new energy vehicles exported to North America following Canada’s recent reduction of tariffs on Chinese EVs. Currently, Lotus is the only Chinese EV brand priced above $80,000 in the North American market. Feng revealed that Lotus can achieve breakeven at an annual sales volume of 30,000 units. Despite a nearly 10% decline in China’s passenger vehicle market for models priced above RMB 400,000 during the first nine months of 2025, Lotus has recorded an 11% year-on-year sales increase in the Chinese market.