Interface News Reporter | Zhou Shuqi
Lotus, which delivered 7617 new cars in the first three quarters of this year, is not satisfied with this performance. This supercar brand, committed to completing its electrification transformation by 2028, announced its entry into the hybrid car market, achieving sales growth in the form of dual power.
At the just concluded Guangzhou Auto Show, Lotus launched 900V plug-in hybrid technology, which can achieve a comprehensive range of 1100 kilometers. This technology will be applied to all Lotus models.
Lotus CEO Feng Qingfeng stated in an interview with Interface News and other media that considering the uneven development of global charging and energy replenishment networks, plug-in hybrid technology can better meet user needs. Lotus may be the world's first ultra luxury car brand to launch plug-in hybrid products.
Hybrid technology is gradually becoming popular in the ultra luxury car market. The high-performance models BMW M5 and Mercedes AMG S63 both use a small battery and electric motor, combined with the engine to output greater power torque, further improving vehicle performance. Lotus plug-in hybrid technology focuses on electric drive, which can achieve high endurance while avoiding performance degradation at high speeds.
This is also the reason why Lotus does not increase its range, as it loses performance when it is in a low battery state, "said Feng Qingfeng.
As a supercar brand on par with Porsche and Ferrari, Lotus has relatively limited influence in the Chinese market. After Geely Group took control of Lotus in 2017, it announced its transformation into an electric vehicle brand to achieve a lane change revival. As of now, Lotus' models on sale include the fuel powered supercar Emira, the pure electric supercar Evija, the pure electric SUV ELETRE, and the pure electric coupe EMEYA.
From January to September this year, Lotus' revenue doubled year-on-year to $653 million, but its net loss expanded by 20% to $667 million, and its gross profit margin decreased from 11% in the same period last year to 9%. Feng Qingfeng explained to Jiemian News that this is due to the destocking of new cars that will be launched next year. Lotus' long-term gross profit margin target is to reach 20%.
Lotus is struggling to open up more survival space in the high-end pure electric vehicle market with limited growth. According to data from the China Association of Automobile Manufacturers, in the first nine months of this year, sales of pure electric vehicles priced over 400000 yuan increased slightly by 1.8% year-on-year, making it the slowest growing segment market. The year-on-year growth rate of the plug-in hybrid car market in the same price range was 92.3%.
In Feng Qingfeng's opinion, the penetration rate of new energy vehicles in the ultra luxury car field with a value of over 80000 US dollars is lower than expected, and the actual and expected data is twice as high. Consumers in this market have a full experience of the power performance of fuel supercars, and it is difficult to have a better breakthrough after switching to electric vehicles. On the other hand, the intelligentization of electric vehicles has not yet reached a time point where there is a clear contrast in experience with gasoline vehicles.
The mid to low end automobile market can achieve a turning point in overtaking gasoline vehicles through electrification, while the ultra luxury car market needs intelligence to change consumer attitudes. Feng Qingfeng believes that with the gradual popularization of urban navigation assisted driving, this turning point will appear in 2025.
Compared to the series of measures taken by luxury brands to actively transform towards electrification, ultra luxury car brands are more cautious. Brands known for their engine performance, represented by Ferrari, are facing a dual challenge: inheriting the historical legacy of engine development while also addressing the demands of future electrification transformations. To some extent, electrification technology has deconstructed the influence accumulated by these brands in the era of fuel vehicles.
Zhang Yichao, partner of iResearch's automotive consulting business in Greater China, pointed out in an interview with Interface News that the difficulty of differentiating the three electric systems is higher than that of engines in the era of fuel vehicles. With the overall development of the automotive industry towards intelligence, the core competitiveness of automobiles does not lie in the past power chain, but in the vehicle's information processing capabilities, including intelligent driving, intelligent cockpit, etc.
Feng Qingfeng told Interface News that one of the main reasons why supercar brands hesitate to transform is that they are not aware of the technological changes that electrification will bring to empower future intelligence. The competition in the ultra luxury car market is not about the form of power, but about the level of intelligence.
According to financial data, Lotus' intelligent driving division recently reached an agreement with a European automaker to provide intelligent driving solutions for multiple models in its plans. Based on contracts previously signed with multiple car manufacturers in Japan and other countries, Lotus has earned a total of $130 million in revenue from outsourcing its intelligent driving technology.
At present, Geely is trying its best to share technology assets among its brands and evenly distribute research and development costs. It is reported that the Jike intelligent driving team will unify the development of intelligent driving for various brands of Geely Group, but this has not been confirmed yet. On the same vehicle platform and technological foundation, Lotus needs to provide consumers with stronger reasons to purchase its own products, rather than turning to cheaper extreme discounts.
After operating in China under the name Lotus for several years, Lotus will rename itself as "Lotus", which is relatively more familiar to Chinese consumers. Interface News learned that Lotus will restart brand promotion with a new name on "Lotus Day" at the end of the year.
Lotus' main sales source is overseas. In the first nine months of this year, Lotus' overseas market sales accounted for as much as 75%. Despite being affected by factors such as intensified geopolitical and trade frictions, Feng Qingfeng said that Lotus will still take root overseas, especially in the United States, the world's largest electric luxury car market.