Lotus warns of more cost cuts despite almost doubling sales

Lotus has warned that heavy cost savings are on the way as it battles "global trade uncertainties", despite the brand nearly doubling its sales over the past year. The brand recorded 12,134 sales during the 2024 financial year (June 2024 to April 2025), up 74% from 6970 in the previous financial year. However, it recorded just $29 million (£21.7m) in gross profit, down from $102m (£76.3m) the year before. This leaves it with just a 3% gross profit margin, down from 15%. Chief financial officer Daxue Wang blamed this on the impact of worldwide tariffs and further “global trade uncertainties”. This will lead to “strategic cost optimisation to improve profitability”, he added, especially as Lotus again becomes a single company when owner Geely merges the UK-based sports car division with the Chinese 'lifestyle' electric car division. “As we progress with the acquisition of Lotus UK, we are committed to driving cost streamlining and operational enhancements across all markets to continuously deliver long-term value,” said Wang. The start of this cost-saving push was seen earlier this month as "volatile market conditions” led the brand to announce it was planning to axe 270 jobs at its Hethel factory. CEO Qingfeng Feng said bringing Lotus under one brand will “strengthen brand equity and enhance operational flexibility and internal synergies”. He added: “We are confident in creating substantial long-term value for our customers and shareholders.” Emira key to sales uplift Key to Lotus's rise in deliveries was a more than doubling of Emira sales, from 2609 in FY23 to 5272 in FY24. The commencement of sales in the US was a big reason for this, with Americans contributing 21% of the sports car’s sales. Sales of the Eletre electric SUV and Emeya electric saloon also rose by 57% worldwide to a combined 6862. Europe was Lotus's biggest market in FY24, making up 39% of its sales. Deliveries rose 179% to 4734. It overtook China, which recorded a 21% downturn in sales to 3018. In FY23, the market made up more than half of Lotus’s sales. Lotus recorded huge growth in the US market, with sales quadrupling to 2578 as the brand opened more dealerships in the country. However, this growth in the US isn’t expected to continue (in the short term, at least), given concerns around the market’s new 25% import tariffs on foreign cars. Feng said: “We are actively exploring potential strategic responses to trade uncertainties to keep expanding in key global markets, such as North America, where we have long been committed.” Lotus said it does expect growth in new markets, though, because at the end of FY2024, Emeya deliveries began in Malaysia, Thailand, Singapore, the UAE and the Philippines.

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Lotus warns of more cost cuts despite almost doubling sales

"Volatile market conditions” have caused profits to drop and already led the brand to cut 270 UK jobs

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Lotus warns of more cost cuts despite almost doubling sales

"Volatile market conditions” have caused profits to drop and already led the brand to cut 270 UK jobs

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