Lotus is reversing its earlier commitment to an all-electric future, confirming it will launch a new range of plug-in hybrid (PHEV) vehicles in Europe next year. This shift comes after slower-than-expected adoption of electric vehicles in the luxury car market, particularly in regions like Italy, Spain, and Saudi Arabia, where EV infrastructure lags.
Shift Away from All-Electric Ambitions
Originally, Lotus aimed to be fully electric by 2028. However, the company’s CEO, Feng Qingfeng, acknowledged that luxury buyers still value traditional performance characteristics and are not yet fully ready to embrace EVs. The introduction of PHEVs provides more options, allowing Lotus to expand into markets with slower EV adoption rates.
First PHEV Model: High-Performance SUV
The first Lotus PHEV will likely be a variant of the Eletre large SUV, boasting a combined power output of 912 horsepower. It will feature air suspension and an active stabilizer system for enhanced handling. Sales in China are set to begin in early 2026, with a European rollout expected in the autumn of the same year.
Strategic Move to Bypass Tariffs
The decision to introduce PHEVs also allows Lotus to circumvent the EU’s impending tariffs on Chinese-built EVs. The move aligns with the broader trend among luxury brands like Bentley and Lamborghini, which have embraced PHEV technology to balance emissions reduction with customer demand for high-performance engines.
Luxury Market Trends Driving Change
PHEVs now dominate production at Bentley (68% in the first nine months of this year) and Lamborghini (90%). This demonstrates a clear preference among luxury buyers for the blend of electric efficiency and gasoline power. Lotus plans to launch three PHEV models, including a smaller SUV—dubbed the Vision X—scheduled for release in 2027.
In essence, Lotus is adapting to market realities by offering a transitional technology that meets both consumer demand and regulatory requirements. This move ensures the company remains competitive in a rapidly evolving automotive landscape.
