Posted on 02 Sep 2024
British luxury carmaker Lotus Technology Inc. has slashed its delivery target after the US and the EU announced tariffs on Chinese EV imports.
The company, majority-owned by Chinese automotive giant Geely, has manufacturing plants in the UK and China.
Citing “uncertainties posed by new tariff policies” in Europe and the US, which are its top markets, Lotus is now targeting 12,000 deliveries for 2024, compared to 26,000 previously.
The US will soon implement 100% tariffs on Chinese-made EVs, while the EU is planning hikes on individual manufacturers ranging between 17.4% and 37.6%. Geely and its subsidiaries are subject to a countervailing duty of 19.3%, plus the usual 10% levy.
Lotus still aims for over 70% growth this year compared to 2023, including quarterly deliveries of 3,000-4,000 units in the six months to December. The company launched its “Win26” plan, intended to achieve 30,000 deliveries, positive operating cash flow and underlying earnings in 2026.
It is also working towards a 4% share of the luxury car market in 2028, Kallanish learns.
In the six months to 30 June, Lotus’ deliveries and revenues increased over three-fold to 4,873 units and $398 million, respectively. The average selling price remained above $100,000 and the net loss widened by 30% to $460m.
The European and US markets accounted for 30% and 26% of the share of deliveries, respectively, with China and the rest of the world representing 25% and 19% respectively.
The carmaker has also debuted in the Gulf Cooperation Council market with two models: the Eletre SUV and the Emeya GT sedan.
Source:Kallanish
