Lotus Technology announced on December 12 that it had debuted its first plug‑in hybrid (PHEV) model, marking a historic entry into the segment after 77 years of pure‑electric focus. The vehicle was added to the Ministry of Industry and Information Technology of the People’s Republic of China’s new‑vehicle catalogue on December 5, 2025, and will be officially launched in China in the first quarter of 2026, with a technology preview event scheduled for January 2026.
The new PHEV is a variant of the Eletre SUV, built on a 900‑volt hybrid platform that couples a 2.0‑liter turbo‑charged petrol engine with a 70‑kilowatt‑hour battery and electric motors. The combination delivers up to 952 horsepower and a combined driving range exceeding 1,000 kilometers, positioning Lotus to compete in the premium plug‑in market that accounted for 47‑70% of luxury new energy vehicle sales in China in September 2025.
Lotus’s shift to a mixed powertrain strategy comes amid slower luxury electric‑vehicle sales and broader global market challenges. By adding a high‑performance PHEV, the company aims to broaden its product mix, improve gross margins, and strengthen its competitive stance against rivals such as NIO and Lucid. The launch also dovetails with the planned acquisition of Lotus UK, expected to close in 2026, which will integrate operations and enhance efficiency across the brand’s global footprint.
Financially, Lotus reported $356 million in revenue for the third quarter of 2025—a 46% year‑over‑year decline—and a net loss of $378 million for the first nine months of the year, a 43% narrowing of the loss compared to the prior year. Gross margin improved to 8% in Q3 2025, driven by healthier inventory dynamics and a shift toward higher‑margin models. The company’s free cash flow was negative $48.51 million in the twelve months ending December 12, underscoring ongoing cash burn. CEO Qingfeng Feng emphasized cost discipline and inventory optimization as key levers, while CFO Daxue Wang highlighted the narrowed loss as evidence of disciplined resource allocation.
The PHEV launch is a strategic response to headwinds in the luxury EV segment. Revenue decline reflects macro‑economic softness and intensified competition, while margin improvement signals effective cost control and a favorable product mix. The new hybrid offers a tailwind by appealing to consumers seeking extended range and flexibility, potentially offsetting some of the revenue pressure. However, the company’s financial challenges—persistent losses and cash burn—remain a concern, and the success of the PHEV will be critical to stabilizing performance and capturing a share of the premium plug‑in market.
In summary, Lotus Technology’s first plug‑in hybrid represents a significant milestone in its electrification journey, marking a strategic pivot that could broaden its product portfolio and improve profitability. The company must navigate ongoing financial headwinds, but the PHEV launch positions it to better compete in a rapidly evolving premium plug‑in landscape.
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