Lotus, the iconic British automotive brand, has delivered a strong performance in the first half of 2024, with a significant breakthrough in the North American market and a global share exceeding 70%. The brand, which was established in London in 1948, has made a remarkable comeback in the new energy sector, capturing a leading position in the high-end electric vehicle market.
Strong Sales Growth and Global Expansion
In the first half of 2024, Lotus delivered a total of 4,873 new vehicles, a significant increase of 239% year-on-year. As a global luxury brand, Lotus’ products are now widely available in mainstream markets around the world. In China, the brand delivered 1,208 new vehicles, accounting for 25% of total sales. This represents a significant decrease from the 67% market share China held in the same period last year.
In the European market, Lotus delivered 1,459 new vehicles, accounting for 30% of total sales, outperforming the Chinese market. Furthermore, Lotus successfully entered the North American market and achieved a strong start, delivering 1,278 new vehicles, accounting for 26% of total sales.
Robust Financial Performance
Lotus’ financial performance in the first half of 2024 was also impressive. The company achieved a gross margin of 13%, an 8% increase year-on-year. The gross margin, which represents the difference between revenue and operating costs, reflects the level of production conversion and value creation. This margin not only represents profit but also the competitiveness of the brand. Lotus had previously set a gross margin target of 17-19% and achieved this in the first quarter of 2024.
In terms of revenue, Lotus reported $225 million in the second quarter of 2024, a year-on-year increase of 103%. The EBITDA (earnings before interest, taxes, depreciation, and amortization) was $177 million, and the adjusted net loss was $201 million. Lotus plans to achieve positive EBITDA and operating cash flow by 2026.
Strategic Expansion and the Win26 Plan
Lotus entered a new era of success in February 2024 when it went public in the United States, listing on the New York Stock Exchange. The stock closed at $13.80 per share, with a market value of over 66.8 billion yuan.
Lotus, with a 76-year history, has faced challenges in the past. Former President Mike Kimberley once said that the company had been on the brink of bankruptcy at least five times before the 1980s. However, the company’s first half-year financial report after its listing shows a strong upward trend.
In 2018, Lotus launched its VISION 80 – a ten-year revitalization plan. Currently, the plan is in the second half of its implementation. According to the early plan, Lotus aims to achieve profitability by 2025, achieve an annual compound growth rate of 80% in sales by 2028, capture a 4% market share in the global supercar market, and increase the gross margin to 30%.
In addition to expanding the high-end market, Lotus is also seeking breakthroughs in the infrastructure of charging systems. In December last year, Lotus, along with Volvo, Polestar, and Lightning Energy Technology, founded a luxury car brand charging alliance. Lotus has reached a strategic cooperation with NIO, integrating more than 2,000 charging stations across China.
Expansion and New Beginnings
Lotus has entered four major strategic markets in the world: China, Europe, America, and the Middle East and Asia Pacific, with more than 200 stores globally. Lotus plans to increase the number of global stores to 300 in 2024-2025 to continue expanding its market share.
With the upcoming Chengdu Auto Show, Lotus will once again shine in the spotlight. The brand’s booth will showcase four products that interpret the culture of the racing track and the legend of the champion, including the EMEYA Profluent Black and White Pack inspired by the racing flag, the EMEYA Profluent Platinum Pack, the EMEYA Profluent R+ Black Gold Edition paying tribute to the Lotus Black Gold Legend, and the EMIRA Racing Photo Training Edition customized for the Champion Road racing event.
With 76 years of accumulation, the iconic brand of Lotus is not lacking in stories. 2024 seems to be a new year for Lotus. While we often say that high-end products are sold based on stories, in fact, high-end products rely more on culture and heritage. With its 76-year-old Windy Tale, Lotus has moved smoothly in the electric vehicle transformation. The strong performance of the pure electric vehicles has almost become a commonality, which is why simply stacking performance cannot surpass competitors. Relying on its deep-seated track experience, Lotus has always insisted on optimizing aerodynamic design and strict lightweighting, making it fast and stable, which is an unchangeable element in Lotus’ genes.
After six months of listing, Lotus has delivered a solid half-year financial report, with impressive performance in terms of delivery volume, revenue, and gross margin, among other indicators. The core indicators are not inferior to those of first-tier new force brands. On a solid foundation, Lotus will further open up in the next stage, and we have every reason to look forward to Lotus writing another century-old wind legend starting with 2024.
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