Lotus Joins Volvo In Reversing EV-Only Strategy

"At Lotus, we’ve always chosen the best power technology available—whether gasoline, electric, hybrid, or range-extended EV (REEV)," Feng stated in an interview with The Wall Street Journal.

Lotus has announced a major shift in its electrification plans, opting to produce hybrid versions of future models instead of transitioning to an all-electric lineup by 2028.

The move was confirmed by CEO Feng Qingfeng during the recent Auto Guangzhou 2024 expo, reports Autocar UK. This also aligns the brand with other automakers, like Volvo, that have reevaluated their EV-only strategies due to evolving market dynamics.

The Chinese-owned British automaker will now switch focus to develop a "Super Hybrid" system featuring ultra-fast plug-in charging and a turbocharged internal combustion engine (ICE) that extends the range to over 1,000KM.

This pivot addresses the growing reluctance of luxury car buyers, particularly in key markets like China, to embrace fully electric vehicles which can be seen in the recent rise of hybrid, plug-in hybrid (PHEV) and REEV offerings.

Furthermore, despite Feng not specifying models that would adopt the hybrid drivetrain, potential candidates can be narrowed down to the Eletre SUV and Emeya saloon, as well as its upcoming Porsche Macan-rivalling SUV.

Feng also acknowledged that while luxury EVs offer fewer performance advantages compared to their ICE counterparts, Lotus intends to address traditional hybrid shortcomings with its "Luyao Super Hybrid" system.

Its hybrid models will be set on a 900-volt architecture for ultra-fast charging, surpassing even battery-swapping speeds used by rivals like Nio. Additionally, the ICE will recharge the battery at a faster rate to ensure continuous performance.

Moreover, Lotus’s pivot also has regulatory and economic benefits as hybrid vehicles are able to navigate out-off the higher tariffs recently imposed on Chinese-built EVs by the European Union, a critical market for Lotus.

The company reported global deliveries of 8,631 vehicles in the first 10 months of 2024, with Europe accounting for 35% of sales and China 25%.

The shift towards hybrid-focused strategy also paints a perfect picture whereby buyers in this segment still prefer powerful ICE engines evident from European brands, like Porsche which is struggling to gain traction in China’s premium EV market with its Taycan.