Lotus has signalled a reprieve for its UK factory in Hethel, saying the Norfolk site is the leading option to build its first hybrid supercar as the Geely-controlled marque resets strategy, cuts targets and seeks to stabilise its finances.
Chief executive Feng Qingfeng told the Financial Times the plant would be the “best option” to produce the Type 135, a V8 hybrid supercar due in 2028, although the final decision will depend on “supply chain availability, operational efficiency and also cost discipline”.
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The move comes about a year after Lotus reversed plans that would have ended manufacturing at Hethel, a shift that had cast doubt over the future of the site.
The company also cut 550 UK jobs last year, about 40% of its local workforce, leaving the factory with around 600 full-time employees.
Lotus is repositioning around hybrids after its all-electric growth push faltered amid weaker EV demand, product delays, cost overruns and the impact of US tariffs.
Feng said the company is now targeting annual sales of 30,000 vehicles by the end of the decade, sharply below its earlier goal of 150,000 by 2028.
Lotus sold 6,520 vehicles last year.
“In the past, we moved too fast,” Feng said, adding that the new focus is “the pursuit of profitability and sustainability of the company”.
Central to that plan is the Eletre X, Lotus’s first plug-in hybrid, launched in China in March and based on Geely’s hybrid platform.
The model has secured more than 1,000 orders and is due in Europe later this year.
Feng said Lotus is aiming for a near-term product mix of roughly 60% hybrids and 40% battery-electric vehicles.
He also said Hethel has become an important export base after a trade deal reduced tariffs on some UK-built cars entering the US, while Chinese-built models such as the Eletre X face prohibitive duties there.
Still, Lotus is under financial pressure.
Its market value has fallen to under $800m from more than $9bn after its Nasdaq listing in 2024, and it carries $3.3bn in liabilities, mostly loans from Geely.
“We have to make it work,” Feng said.
