Lotus to reunite sports car and EV divisions as Geely approves merger
Lotus will become a single, unified company again as parent firm Geely merges the brand’s British sports car operation with its Chinese electric vehicle business, Lotus Technology.
The two divisions have operated separately since Geely spun off Lotus Technology before its planned stock market listing in 2023.
Under the newly announced deal, Lotus Technology will buy out Geely’s 51% stake in the UK-based sports car business. This will “enable the company to integrate all businesses under the Lotus brand.”
The decision comes as premium EV makers face market challenges and growing trade tensions. Recent US tariff hikes have hit global carmakers including Geely particularly hard.
Lotus Technology was originally created to make the brand more attractive to investors. It operated as a distinct, Chinese-built EV business where Geely maintained a larger shareholding than in Lotus Cars UK. The British operation remains 49% owned by Malaysian firm Etika.
The exact ownership structure of the combined company hasn’t been revealed.
This restructuring aims to simplify operations and give Lotus Technology shareholders greater access to the company’s heritage-rich sports car division. Previously, Lotus Technology handled distribution of Lotus sports cars but wasn’t involved in their development or production.
“We are confident that the transaction will create substantial long-term value for our shareholders,” said Qingfeng Feng, CEO of Lotus Technology.
The merger follows struggles for both parts of the company. Lotus Technology has seen weakening demand for electric vehicles among wealthy buyers. Meanwhile, Lotus UK faces new 25% import tariffs in the United States – a key growth market for the brand.
Last week, Lotus UK announced it would cut up to 270 jobs at its Hethel factory in Norfolk, citing both American tariffs and “shifting consumer demand for sports cars.” The petrol-powered Emira hasn’t met sales expectations.
Despite these challenges, Lotus delivered 12,065 cars globally in 2024 – a 70% increase year-on-year.
The company forecasts more modest 20% growth for 2025, with China expected to represent a growing share of customers. Chinese buyers accounted for 25% of total sales in 2024.
In Europe, Lotus faces additional hurdles. The EU has raised tariffs on Chinese-made electric vehicles, adding up to 29% to import costs in Geely’s case – a significant setback for a brand trying to expand its EV presence across the continent.
Responding to cooling interest in pure electric models, Lotus plans to introduce petrol-engined range-extender versions of its EV lineup from 2026. This strategy aims to bridge the gap between traditional performance customers and newer electric buyers.
The merger should position Lotus more competitively globally, allowing it to better use its brand heritage while adapting to the changing demands of a complex, multi-market EV landscape.
