Why Even Lotus Is Going Hybrid

If 2024 will be known for one thing in automotive history, it’s backtracking. Yet another automaker has walked back on plans of going all-electric, and it’s one that’s gone hard in the EV paint when it comes to product planning. As part of a third-quarter investor relations document, Lotus outlined a new hybrid system promising more than 683 miles of combined range and a 900-volt high-voltage architecture. Dubbed “Hyper Hybrid,” it’s a firm pivot away from an all-BEV future, and it’s easy to see why this shift in direction may have happened.

Here’s a little background: Shortly after Geely acquired the famed British sports car brand, Lotus had a vision of the Emira being the last ever combustion-powered model from the marque, quickly following it up with the Evija electric hypercar, the Eletre electric SUV, and the Emeya electric sedan. However, despite these grand plans, a number of things haven’t gone to plan. Some of it seems due to regulatory pressures, and some of seems due to rich people just not wanting EVs. Let’s dig into it.

Firstly, there are the tariffs. As it stands, the Eletre and Emeya are both made in China, and if you’ve been following the headlines over the past few months, Chinese EVs aren’t looked upon fondly by Western governments. America has a 100 percent tariff on Chinese EVs, Canada matched that, and even in Europe, since Lotus is under Geely, the Eletre and Emeya are subject to an 18.8 percent tariff on top of existing duties.

As such, the U.S. market price of the Eletre SUV has soared from an anticipated $107,000 starting price and $145,000 for the top R trim to $229,000. When an electric G-Class is priced at $162,500, the Eletre is a hard sell. Considering how critical the U.S. market is as a playing field for upscale SUVs, that sort of delta puts Lotus on the back foot, so a pivot of some sort certainly seems necessary on that front. Since the upscale EV market is rather saturated, there’s definitely some white space to get a plug-in hybrid in there, and that could boost consumer appeal.

Then there’s the fact that ultra-high-end EVs have been a bit of a hard sell. Back in May, Autocar reported that Mate Rimac of Bugatti Rimac saw dwindling demand for electric hypercars. The astonishing Rimac Nevera hadn’t sold out its 150-car limited-production run, with Autocar reporting:

Rimac said he doesn’t see demand returning for electric hypercars because, while in the mainstream car segments there will be little prevailing loyalty for individual brands and powertrain technologies, the high-end car segments demand a high level of differentiation and “analogue” appeal.

This doesn’t play so well for the seven-figure Lotus Evija electric hypercar, as what was meant to be a halo product for the brand certainly seems overshadowed by the Emira, a low-six-figure combustion-powered sports car that seems simply fantastic. Mercedes drove it in Los Angeles earlier this year and it opened up a whole new world.

The fact of the matter is not everyone wants to drive a battery-electric vehicle or is even able to charge one at home. At the same time, diehards still want sports cars the old-fashioned way — stick-shift, lightweight, and with a rousing internal combustion crescendo. You aren’t going to force the latter group into BEVs anytime soon, and the missing middle of hybrids, plug-in hybrids, and extended-range electric vehicles needs to be filled. The truth is, we’ll be seeing many different powertrain choices for many different applications for years to come. Lotus isn’t the first to pivot towards a broader portfolio and it won’t be the last.

(Photo credits: Lotus)

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