Lotus to be a single company again after ownership change

Lotus will become a single company again as owner Geely merges the UK-based sports car division with the Chinese 'lifestyle' electric car division.

The two have been separate since Geely spun off Lotus Technology ahead of listing it on the stock market in 2023. 

Now Lotus Technology will buy out Geely’s 51% share of Lotus UK in a move “that will enable the company to integrate all businesses under the Lotus brand”.

Lotus Technology was originally created as a more investable arm for Chinese-built Lotus EVs, in which Geely owned a greater share than it did of Lotus UK, which is 49% controlled by Malaysian firm Etika.

The percentage that Geely-controlled entities will have in the newly combined Lotus company hasn't been disclosed.

Lotus Technology has been affected by falling demand for EVs among wealthier car buyers, while both it and Lotus UK have been severely buffeted by increased trade tariffs in the US – a key market. 

Last week, Lotus UK announced that it would cut up to 270 jobs at its Hethel plant in light of the American decision to impose a blanket 25% tariff increase on all imported cars.

The cuts were also attributed to “shifting consumer demand for sports cars” in reference to lower sales of the petrol-engined Emira.

Creating a single Lotus company out of the two divisions gives Lotus Technology shareholders more exposure to the sports car division.

Before the deal, Lotus Technology was responsible for the distribution of the sports cars but not the production or development.

CEO Qingfeng Feng said in a statement: “We are confident that the transaction will create substantial long-term value for our shareholders."

Lotus delivered 12,065 cars in 2024, up 70% from the year before. It's predicting a more modest 20% bump in 2025, with China expected to take a greater proportion than in 2024, when it accounted for a quarter of sales.

Sales of Chinese-built EVs in Europe have been hampered by the EU's recent tariff hikes, which in Geely’s case add 29% to the cost of a shipped car.

Lotus will address falling EV sales with the introduction of petrol-engined range-extender versions of its electric models from 2026.