Lotus lowers sales forecast to only 12,000 deliveries for 2024
Instead of the previously forecast 26,000 vehicles, Lotus is only expecting 12,000 deliveries this year. This figure also includes cars with combustion engines, but the two electric models Eletre and Emeya are expected to account for the majority of sales this year. In the current annual report, the downgrading of the delivery target sounds as follows: “After assessment of the evolving market conditions, and uncertainties posed by new tariff policies in US and EU, the Company has revised its delivery target for 2024 to 12,000 units.” Both the Eletre and the Emeya are produced in Wuhan, China.
Lotus sounded much more euphoric in its annual report for 2023. With 6,970 vehicles delivered – including 4,361 BEVs – the traditional brand celebrated a new record in its 76-year history. The curve should rise steeply in 2024. In addition to the Eletre, which has been rolling off the production line since 2022 and is set to be launched in other markets, the Emeya electric sedan will also be launched this year. It is due to hit the roads in Europe from around the third quarter. In April, Lotus proclaimed that 2024 would be “a decisive year for the realisation of the Vision80 strategy” by increasing sales to 26,000 vehicles.
The interim results after the first half of the year reveal the huge gap between aspiration and reality. Lotus completed 4,873 deliveries across all drive types, an increase of 239 per cent compared to the same period last year, but a far cry from the original target. The nevertheless high increase compared to the first half of 2023 can be explained by the fact that Lotus owed its 2023 delivery record primarily to a strong final spurt in the fourth quarter. In contrast, the first half of 2023 was less spectacular.
Under its parent company Geely, Lotus is fundamentally driving forward the transformation from a traditional sports car manufacturer to “an intelligent luxury mobility provider,” as stated in the annual report. With its purist sports cars, Lotus had previously restricted itself to a limited target group. Sporty luxury SUVs and saloons with electric drive are not a mass market either, but a much larger customer group in 2023, hence the new targets in terms of deliveries.
Lotus Technology’s total revenue for the first half of 2024 amounted to USD 398 million (+206% YoY), while the net loss totalled USD 460 million (+30% YoY). The company now wants to work on its profitability as a priority. Lotus wants to achieve a positive EBITDA in 2026 with a self-imposed plan called ‘Win26’. To this end, “internal processes and structures are to be further optimised, general cost measures implemented and product plans recalibrated.”
Meanwhile, Lotus CEO Qingfeng Feng speaks of steady progress in the first half of the year. “The US market recorded extraordinary growth after Lotus’ re-entry into the market, contributing to 26% of total deliveries.” He explained: “We launched ‘Win26’ plan to increase resilience, strengthen our brand, and strive for sustainable growth. Going forward, we will keep executing our plans, boosting our efficiencies and competitiveness, and remain committed to our customers, investors, and stakeholders.”
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