Lotus’s Clever Trick to Sell Its Cars at Lower Prices!

Are Chinese electric cars penalized by customs duties? No problem, Lotus has found a workaround.

When the Chinese group Geely acquired the British manufacturer Lotus, the goal was to make it the definitive 100% sporty electric benchmark by 2028 in the American and European markets. A very tight schedule that would have allowed Lotus to outrun brands like Ferrari and Lamborghini. But, in the meantime, customs duties have become completely prohibitive for Chinese productions, even high-end ones, because they are based on the sale price.

Rather than struggle with unfair competition against European and American manufacturers, Geely announced a significant change to its ambitious plan. Lotus will now focus on developing a “super hybrid” technology that combines a turbocharged internal combustion engine with advanced electrical systems. The result: cars with exceptional performance that are not taxed. And incidentally, a nice slap in the face to the European Commission.

So, lightweight hybrids or plug-in hybrids? Neither. Lotus’s new strategy will focus on developing EREVs, electric vehicles with range extenders as they are called in Europe. The system will combine a small turbocharged internal combustion engine with a high-voltage battery architecture and ultra-fast charging. So, Lotus will be full electric vehicles with batteries, as the internal combustion engine will only be used to recharge them, not to drive the wheels. Future Lotus models will just include a small generator to extend range beyond 1,000 km! Lotus is not abandoning its new electric philosophy but is making some concessions…

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