Lotus Cuts 2024 Production Targets By 78% Due To New US Tariffs

Lotus originally planned to build 55,500 cars in 2024, but they’ve cut that target down to 12,000—a 78% drop. The increased tariffs placed on electric vehicles manufactured in China are the direct cause, according to the company.

Qingfeng Feng, Group Lotus CEO, stated during the brand's second-quarter results conference that the company will need to reposition its products in the US as a result of the 100% hike in Chinese EV tariffs. Therefore, Lotus has reduced its projections for both 2024 and 2025, bringing the number of vehicles it intends to sell in 2025 from 76,000 to just 30,000.

He admitted that tariffs were the sole cause of the US market decline and 30% of the EU market decline. Their sales projections have taken a nosedive due to US tariffs, and they intend to reposition their products inside the US market. “The Eletre launch in the US will contribute more to 2025 performance.”

During the first half of the year, Lotus sold 4,873 automobiles. The Eletre and Emeya accounted for half of those vehicles, with the combustion-powered Emira making up the other half. With the launch of its first two electric vehicles, the company had a 239% increase in total sales compared to the first half of 2023. At 1,459 units sold, Europe was the most significant market for the automaker in the first half of the year, surpassing both North America and China.

“Through our unwavering pursuit of performance and excellence, we made steady progress with continuing operation growth in the first half of 2024. In the first half of 2024, deliveries soared to nearly 4,900 vehicles, up 239% year-on-year. We achieved even more balanced distribution of deliveries in all key markets globally.”

“The US market recorded extraordinary growth after Lotus’ re-entry into the market, contributing to 26% of total deliveries. We launched the ‘Win26’ plan to increase resilience, strengthen our brand, and strive for sustainable growth. Going forward, we will keep executing our plans, boosting our efficiencies and competitiveness, and remaining committed to our customers, investors, and stakeholders.”