Lotus Technology, the British sports car maker majority-owned by China’s Geely group, is celebrating Canada’s recent decision to reset its tariff policy, which will lead to a significant price reduction for its high-performance electric SUV, the Eletre. The automaker announced in a press release that the price of the Wuhan-made Eletre SUV will decrease by approximately 50% due to Canada’s reduced tariffs on Chinese-made EVs, dropping import duties from 100% to just 6.1%.
Lotus anticipates that this change will have an immediate and substantial impact on demand for the Eletre. Wholesale deliveries of the electric SUV are expected to experience exponential growth as the tariff benefits take effect. Lotus CEO Qingfeng Feng expressed his gratitude for the optimized tariff policy, stating that it creates a more open and fair market environment for international auto brands.
The policy shift, announced by Prime Minister Mark Carney, will allow up to 49,000 Chinese EV imports annually in exchange for reduced tariffs on certain Canadian exports to China, such as canola. While this number represents only about 2.5% of the 1.9 million new vehicles sold in Canada last year, the quota is set to increase, reaching approximately 70,000 EVs within the next five years.
More than half of the imported EVs will need to be affordable models priced at $35,000 Canadian ($25,000 U.S.) or less. However, there is also room for premium vehicles, a category that Lotus is particularly enthusiastic about. The automaker initially introduced the Eletre in Canada two years ago with a starting price of $126,800 Canadian.
Overall, Lotus Technology is looking forward to the positive impact that Canada’s new tariff policy will have on the demand for its electric SUV. With the price reduction expected to make the Eletre more accessible to a wider range of customers, the automaker is optimistic about the growth potential in the Canadian market for high-performance electric vehicles. Lotus, known for its high-performance sports cars, has recently made waves with the release of its new electric SUV, the Eletre Carbon. Priced at a hefty $313,500 Canadian ($229,900 U.S.), this ultra-high-end vehicle boasts a powerful 905-horsepower dual-motor setup, allowing it to accelerate from 0 to 60 miles per hour in under three seconds. Additionally, the Eletre Carbon offers an impressive estimated range of about 280 miles from its 109-kilowatt-hour battery.
While the Eletre Carbon is certainly an impressive vehicle, some consumers may find the price tag to be out of reach. However, there may be hope on the horizon for those interested in Lotus’ electric offerings. The recent reduction in tariffs could potentially pave the way for the reintroduction of the entry-level Eletre, which would come with a significantly lower price tag.
If Lotus were to bring back the entry-level Eletre at a reduced price, it could potentially compete with more affordable electric vehicles on the market, such as the Tesla Model Y. Despite being in the same price range as the Model Y, the Eletre would offer a more upscale and performance-focused driving experience, making it an appealing option for luxury electric vehicle enthusiasts.
Furthermore, Lotus is not the only carmaker that could benefit from the new tariff policy. With the potential for reduced tariffs on electric vehicles, we may see other automakers following suit and introducing more affordable electric options to cater to a wider range of consumers.
Overall, the future looks bright for Lotus and other carmakers looking to capitalize on the growing demand for electric vehicles. With the potential for more affordable options on the horizon, consumers can look forward to a wider range of electric vehicles to choose from in the coming years.