Lotus to reunite as single global company under Geely restructuring

Lotus is set to become a single, unified company once more 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 ahead of its planned stock market listing in 2023. The newly announced deal will see Lotus Technology buy out Geely’s 51% stake in the UK-based sports car business, a move that will “enable the company to integrate all businesses under the Lotus brand”.

The decision comes amid challenging conditions for the premium EV market and growing trade tensions, particularly in the US, where recent tariff hikes have significantly impacted global carmakers including Geely.

Originally formed to make Lotus more attractive to investors, Lotus Technology was positioned as a distinct, Chinese-built EV business in which Geely had a larger shareholding than in Lotus Cars UK. The latter remains 49% owned by Malaysian firm Etika.

While the exact ownership structure of the combined company has not been disclosed, the move is designed to simplify operations and offer Lotus Technology shareholders greater access to the company’s heritage-rich sports car division. Previously, Lotus Technology was responsible for the distribution of Lotus sports cars, but not their development or production.

Qingfeng Feng, CEO of Lotus Technology, said: “We are confident that the transaction will create substantial long-term value for our shareholders.”

The merger follows a difficult period for both parts of the company. Lotus Technology has been hit by weakening demand for electric vehicles among affluent buyers, while Lotus UK has faced headwinds in the form of newly imposed 25% import tariffs in the United States – a key growth market for the brand.

Last week, Lotus UK announced plans to cut up to 270 jobs at its Hethel factory in Norfolk, citing both the American tariffs and “shifting consumer demand for sports cars”. Sales of the petrol-powered Emira have failed to meet expectations.

Despite these pressures, Lotus delivered 12,065 cars globally in 2024, marking a 70% increase year-on-year. However, it has forecast a more modest 20% growth for 2025, with China expected to make up a growing share of the brand’s customer base. In 2024, Chinese buyers accounted for 25% of total sales.

In Europe, Lotus faces further challenges. The EU has raised tariffs on Chinese-made electric vehicles, adding as much as 29% to the cost of imports in Geely’s case — a significant blow for a brand looking to scale its EV footprint across the continent.

In response to the cooling appetite for pure electric models, Lotus has revealed plans to introduce petrol-engined range-extender versions of its EV line-up from 2026, in an effort to bridge the gap between traditional performance customers and the newer electric demographic.

The merger is expected to position Lotus more competitively in the global automotive sector, allowing it to better leverage its brand legacy while adapting to the evolving demands of a complex, multi-market EV landscape.