Lotus Revises Strategy: Reviving Combustion Power

[Strategic Adjustment] Lotus has unveiled 'Focus 2030,' abandoning its previous goal of becoming fully electric by 2027 and shifting instead to a three-pronged approach encompassing internal combustion engines (ICE), hybrids, and battery-electric vehicles.

Strategic Rationale: Aggressive Electrification Is Unsustainable

In 2025, Lotus reported a 45.7% drop in global sales and revenue of just $519 million, down 44% year-over-year. From 2021 to 2025, the company accumulated losses exceeding $3.1 billion. The Emira, originally slated as Lotus’s 'last ICE model,' will no longer carry the brand alone—a new combustion-engine sports car is set for launch.

Core Shift: Hybrid Technology Takes Center Stage for the Next Decade

The Type 135, initially planned as a pure EV, has been re-engineered into a V8 hybrid targeting 1,000 horsepower. CEO Feng Qingfeng stated that 'super hybrids' will serve as the cornerstone of Lotus’s global strategy for the next 10 to 15 years, with full electrification deferred until market conditions become favorable.

Key Metrics: Early Signs of Cost Optimization

Despite a 50% decline in deliveries, Lotus achieved a gross margin of 9% in 2025—an improvement against the trend—and narrowed its operating loss by 46% year-over-year, signaling that internal cost-control measures are beginning to take effect.