Lotus, which sold 1500 cars in its all-sports car, all-petrol range last year, is aiming to move 100,000 EVs by 2028 as it moves into the EV market with its first SUV. Photo / Supplied
Lotus, which sold 1500 cars in its all-sports car, all-petrol range last year, is aiming to move 100,000 EVs by 2028 as it moves into the EV market with its first SUV. Photo / Supplied
Lotus is undergoing an extreme makeover, and one that offers a glimpse into the way the global and New Zealand car markets are changing - in a world where the firm sees only "six or seven" more years of sales for cars with internal combustion engines.
The fabled English sportsand supercar maker is broadening its reach with an electric SUV - and is shooting for sales of 100,000 EVs a year by 2028.
Its latest managing director, Matt Windle, certainly knows this territory.
Lotus managing director Matt Windle at Giltrap Group. Photo / Dean Purcell
He was Telsa Motors' principal engineer for seven years from 2005 working closely with Elon Musk on the EV pioneer's first vehicle, the Roadster.
Now, with Lotus recapitalised to the tune of $2.8 billion by China's Geely, Windle is overseeing a push into EVs that includes a new $100m factory in the firm's hometown of Norwich, and a new $700m plant in Wuhan capable of turning out 150,000 vehicles a year.
Windle was part of a squad of Lotus executives who visited new distributor Giltrap Group in Auckland this week.
It came at a time when Giltrap is sharpening its EV offerings. The group already has multiple electric options across its multi-brand stable, but in the new year added the Polestar 2 to its lineup (read Driven's review here) and earlier this month it opened a Polestar showroom (on the bottom floor of Westfield Newmarket).
The Polestar 2. Photo / File
Many motoring pundits see the Polestar 2 as a bid to go head-to-head with Tesla's Model 3, local sales of which exploded after the Clean Car Discount was introduced in July last year - helping double the amount Kiwis spent on EVs in the year to March to $877m.
The Polestar 2 is off to a fast start. It topped New Zealand's EV sales charts for April with 81 sales. True, it was a month distorted by government incentives (the first, and most generous, phase of the Clean Car rebate expired at the end of March - which saw a Tesla Model 3 bulge of 979 sales that month, then a near-flatline in April). Still, with 237 sales since January of the Polestar 2 ($69,990 or $78,900 with a dual motor), the newcomer has momentum.
It also has something in common, on the business side of things. The startup Polestar was bought by Volvo in 2015 - and since 2010, Volvo has been owned by Chinese giant Geely. In 2017, Geely bought a 51 per cent stake in Lotus for a bargain-basement $65m.
Windle paints the deal as a win-win, with Geely's billions turbocharging production and vehicle development, but Lotus guaranteed to maintain its own vehicle platform (platforms are commonly shared between different brands' models in a conglomerate setup) and its key design elements, such as its aerodynamic vents, remain unique. "The holes are ours," Windle says.
The Emira, landing in NZ next month, will be Lotus's last internal combustion engine vehicle. Photo / Supplied
Windle will not get on Greenpeace's Christmas card list just yet.
The vehicle that's next up in Lotus's lineup, the Emira, runs on good old gasoline explosions and, although it introduces a number of features to broaden its appeal, it's still firmly within the carmaker's recent heritage. A V6 version will land in New Zealand next month, priced at $177,000 (see Driven's preview here); a four-cylinder $144,000 version will follow in 2023.
But it will also be Lotus's final internal combustion model.
From next year, the firm will begin production of a pure electric "Hyper SUV" called the Eletre.
It will also be the first Lotus that's more suited to carting a family than a blat around Hampton Downs. There will be cupholders. But also a bit of pep promised, with a hold-onto-your-coffee 0 - 100km in three seconds promised, and a range of 550km (see Driven's preview here).
From left: Lotus Asia Pacific regional director Dan Balmer, brand director James Andrew, global sales director Geoff Dowdin and MD Matt Windle at Giltrap Group in Auckland. Photo / Dean Purcell
"Last year, we manufactured, 1520 cars, and we could have sold more if we could have made them. It was a good year for us. But the scale is tiny. The technology that you need to meet legislation, to meet certification requirements - the amortization of that over 1500 units; it's just not a sustainable business."
He adds that last year, there were around 3 million EV sales worldwide. By 2030, it's estimated that EVs will account for 60 to 70 per cent of sales (not unrealistic, given almost all major car manufacturers have said they will cease making ICE vehicles by the end of the decade) or around 33 million vehicles.
So when Lotus was strategising its latest reboot, the Eletre hit the commercial sweet spot.
"We're combining the two biggest growing segments, EV and SUV," Windle says.
The company sees sales of around 4000 next year and 7000 the year after that as it shoots for 100,000 a year by 2028. It anticipates that once it gets to that level, 90 per cent of its sales will be "lifestyle" vehicles and 10 per cent sports cars.
The Evija will be a high-performance "hyper car" EV with a production run limited to 130 and a price tag around $3m. Photo / Supplied
All of the lifestyle vehicles will be EVs, and Lotus's sports and supercars will tilt in that direction too. Later this year, the Evija, a "hyper car" with a production run limited to 130 and a price tag of around $3m, will serve as an EV showpiece.
But in the here and now, Lotus shares the same headaches as every other manufacturer. Windle says he's never known such a challenging industry environment, between supply chain problems, the semi-conductor shortage and Covid chaos impacting almost every level of vehicle production. The latest supply chain headache is with foot carpets - a simple item but one that can hold up delivery of a car.
Lotus Asia Pacific regional director Dan Balmer. Photo / Dean Purcell
The better news is that with its deep-pocketed parent, Lotus is much better positioned to ride out the trouble.
"The challenge and the opportunity for us is to grow the volumes away from the classic epicentres of Lotus currently into new markets into new audiences. And that includes not just sports car-loving public, but also SUVs and EVs," Asia-Pacific regional director Dan Balmer said.
POSTSCRIPT: Will Lotus get back into Formula One?
Lotus won multiple drivers and constructors titles during its time in Formula One.
Windle says he's watching Netflix's Drive to Survive, but says he doesn't harbour any ambitions to return to the competition.
"I'm a big F1 fan, but it's just too expensive," the Lotus boss told the Herald.
"Ultimately, yes, I would love us to get back there in some form. But in the short term, we're just putting all our focus into product development. If the revenue predictions are right, we might have a spare $200m. That's what you need just to get to the table in F1."
Sticking with Norwich
Lotus became Norwich City FC's shirt sponsor after it won the Championship and was promoted to the Premier League for the 2021/22 season - only to finish dead last.
Will Lotus stick with the team after it's relegated?
"I do have an out, and we are talking to him about what we're going to do," Windle says.
"But are a fantastic family and community-based club, and we're a family and community-based business. So the two fit together really well and I think we'll probably carry on."
He adds, "Funnily enough, I came straight from Carrow Road (Norwich's stadium) to come to New Zealand. They sent a feedback form that said, 'What can we do to make your day better?' and I just put 'Score more goals'.
