Lotus cuts 2024 production by 78%, blames new US tariffs

Despite setbacks, Lotus is on track to sell more cars this year than it did in 2023

Lotus expects to produce 12,000 cars by the end of 2024, a sharp drop of 78% from the 55,500 originally planned for this year. The company blames new Chinese tariffs on electric vehicles.

Lotus Group CEO Feng Qingfeng recently said during the brand’s second-quarter earnings call that the company will have to reposition its products in the U.S. due to a 100% increase in Chinese EV tariffs. In addition to lowering its 2024 forecast, Lotus also slashed its expectations for 2025, now expecting sales of just 30,000 units next year, down from its original target of 76,000 units.

Read: Lotus may suspend Elise EV development to await lighter batteries

“A 100% drop in sales in the US market is related to tariff increases, while about 30% of the drop in sales in the EU market is related to tariffs,” he revealed. “US tariffs have significantly impacted our sales forecasts and we are planning to reposition our products in the US market. The launch of Eletre in the US will contribute further to the performance in 2025.”

The company sold 4,873 vehicles in the first half of the year, of which about half were the all-electric Eletre and Emeya and the other half were the combustion engine-powered Emira. The brand’s total sales increased 239% compared to the first half of 2023, thanks to the launch of its first two electric vehicles.

Europe was the automaker’s most important market in the first half of the year, with sales of 1,459 units, slightly ahead of North America’s 1,278 units and China’s 1,208 units.

“Through our relentless pursuit of performance and excellence, we have made steady progress in the first half of 2024, with continued operational growth,” added Mr. Feng. “Deliveries soared to nearly 4,900 vehicles in the first half of 2024, up 239% year-over-year. We have a more even distribution of deliveries across all major markets around the world.”

“Lotus has returned to the US market with exceptional growth, accounting for 26% of total deliveries. We have launched our ‘Win26’ plan to increase resilience, strengthen the brand and strive for sustainable growth. Looking ahead, we will continue to execute our plans, improve efficiency and competitiveness, and remain committed to serving our customers, investors and stakeholders.”