---
title: "Old British luxury car brand encounters headwinds"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/213130004.md"
description: "Lotus Tech, a well-established British luxury car manufacturer, recently released its 2024 semi-annual report, with sales doubling. However, the management has lowered the sales target from 26,000 to 12,000 units, and the 2026 target has also been significantly reduced to 30,000 units. Sales in the North American and EU markets are expected to decrease by 30% due to tax impacts. In the first half of the year, Lotus Tech's net loss expanded to USD 424 million, with sales costs doubling. To cope with market fluctuations, CEO Feng Qingfeng has launched the \"Decisive 26\" strategy, adjusting overseas strategies and planning to launch an SUV model, Electra, in North America"
datetime: "2024-09-01T07:44:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/213130004.md)
  - [en](https://longbridge.com/en/news/213130004.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/213130004.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/213130004.md) | [繁體中文](https://longbridge.com/zh-HK/news/213130004.md)


# Old British luxury car brand encounters headwinds

Author | Chai Xuchen

Editor | Zhou Zhiyu

Just as Lotus, which has just experienced a second spring in sales, encountered new troubles in the global luxury car market.

Recently, Lotus released its 2024 semi-annual report. Breakthroughs in markets around the world have more than doubled the sales of this long-established British supercar brand, reaching 4,873 units, directly driving revenue up to USD 398 million (approximately RMB 2.8 billion), a year-on-year increase of 206%.

At the performance meeting, Lotus CFO Li Kunlong frankly stated that these are record-breaking numbers in the brand's 76-year history.

**Everything seems to be thriving, but the management has lowered this year's sales target from 26,000 to 12,000 units; at the same time, the sales target for 2026 of 50,000 to 60,000 units has been revised to 30,000.**

**The significant downward revision of sales expectations is due to the fact that its most valued European and American markets are currently full of uncertainties.**

At the financial report meeting, Lotus Global CEO Feng Qingfeng admitted that tariffs in the North American and European Union markets have made it impossible to achieve sales targets in the U.S., and the overall sales volume in Europe will also be affected by 30%.

According to its early plans, 40% of Lotus' future sales will rely on overseas markets, with the high acceptance of high-end electric vehicles in Europe and America being the "granary." In the first half of the year, North America contributed 26% of Lotus' sales, while the European Union contributed 30%, both surpassing China and becoming its two most important markets.

This means that Lotus' global strategy is now shrouded in uncertainty. As for the Chinese market, Feng Qingfeng also mentioned that luxury car sales in China have declined by 50%. Although Lotus has maintained positive growth, it has not met internal expectations.

In the battle for brand revitalization, Lotus, which is eager to gain momentum, has to adjust its strategy because it is still in a period of heavy investment. In the first half of the year, its adjusted net loss expanded by nearly 20%, reaching a net loss of USD 424 million (approximately RMB 3 billion); sales costs doubled, and R&D expenses also increased by 73% year-on-year.

**Caught up in this new market revolution, Lotus does not want to be a bystander in hesitation. Feng Qingfeng quickly launched the new strategy "Win26" to adjust its overseas strategy and create the second and third curves, with the core goal of achieving a turnaround in 2026.**

Breaking it down, to cope with the current fluctuations in the luxury car market, Feng Qingfeng stated that they will first readjust the market positioning of American products and will release the SUV model Electra in North America in September; as for the European market, new market positioning will be announced in the fourth quarter of this year, along with model upgrades.

However, these adjustments will not be reflected in Lotus' sales until 2025. In order to reassure the secondary market, Lotus is further promoting its product brand Li Kunlong revealed that Lotus Tech will launch two new cars in the coming years, with deliveries starting the following year. These new cars will become the main force for the company's profitability and growth, helping Lotus Tech to capture a 4% share of the global luxury car market by 2028, in celebration of the brand's 80th anniversary.

Feng Qingfeng mentioned that one of the new cars to be released in 2025 will become a high-volume model for Lotus Tech. "The technology used in this car is very advanced, and by 2025, our distribution channels will be very mature. Once the new car is launched, it will quickly enter the market and rapidly enter a growth trend."

The Nirvana Plan has been revealed, but convincing investors to accept the "delayed satisfaction" of the coming years is not easy. Feng Qingfeng admitted, "Facing the severe challenges of the luxury car track, especially in the luxury electric vehicle segment, we need to find the second and third growth curves."

In the midst of difficulties, Li Shufu once again lent a helping hand to Lotus Tech.

Feng Qingfeng stated that its wholly-owned subsidiary, Lotus Robotics, has begun to provide end-to-end smart driving solutions and R&D services for car companies. Geely's Lynk & Co and remote trucks are its first batch of customers. He revealed that in addition to Lynk & Co Z10, the company has also secured designated spots for three other Lynk & Co products, and will strive for Geely's designated spots in the future.

Smart driving is a business that Lotus Tech has been brewing for 3 years. Feng Qingfeng said that this is a business with a gross profit margin of over 60%. This year, Lotus Tech's revenue in the smart driving field will reach around 400 million RMB, and there will be even higher growth in the coming years. He firmly believes in the company's technological strength, stating, "Our single unmanned autonomous driving mileage has reached a record high of 533 kilometers, equivalent to a full charge from start to finish."

However, Feng Qingfeng also understands that they cannot always rely on Geely's assistance. In his view, the reputation of Lotus Tech's engineering company has already been established globally, and the smart driving business will also expand overseas markets smoothly, which is the advantage of this technology-oriented luxury car brand.

"We hope that by 2027, non-Geely smart driving business revenue will account for more than 70%." Feng Qingfeng revealed that Lotus Tech has already secured designated spots for three models from a large European car company, and four more models are currently in the process of being designated; Hyundai, Mercedes-Benz, Aston Martin, and Volvo are also experiencing Lotus Tech's smart driving solutions.

In addition to the smart driving business, Lotus Tech has introduced high-end vehicle customization to enhance profitability.

With the launch of Chapman's personalized customization service this year, starting from one million, the high-end versions of ELETRE and EMEYA, and even the limited edition EVIJA Fittipaldi priced at 26.88 million RMB, have successively appeared. This is a high-profit story that a luxury brand should have. Feng Qingfeng stated that this service will be expanded from China to the Middle East, Asia-Pacific, and the United States, "bringing high gross profit growth."

After the "reorganization" of products and markets, Lotus Tech's "Decisive 26" plan is taking shape. Feng Qingfeng confidently stated that he aims to build Lotus Tech into a "small and beautiful" company with extremely high efficiency, and the company's gross profit margin will increase from the current 13% to 20%, achieving positive profitability effortlessly His confidence comes from Lotus Tech's light asset advantage.

Feng Qingfeng stated that the majority of Lotus Tech's expenditures have peaked in the past two years, with 4 models already on the market, the architecture and technology are basically finalized, and this year the vehicle BOM cost will decrease by another 8%; in the high-expenditure factories and network end of mainstream car companies, Lotus Tech also has the support of Geely Group and overseas distributors.

**Perhaps, this crisis in the luxury car market is also a test for them. Taking the "timidity" of luxury brands like Porsche as a lesson, Lotus Tech realizes that the market changes are so harsh, but at the same time, it is an opportunity for innovators.**

If Lotus Tech can successfully implement the above-mentioned plans one by one and pass the test, in the future, it can still become a dazzling luxury car brand under Geely, and can completely break free from the fluctuations of the US stock market

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