Lotus Technology, the British sports car maker in which Chinese group Geely Group holds a majority stake, welcomes Canada’s decision to reset its tariff policy that is set to lead to a significant drop in prices for high-performance electric SUVs.
The automaker said in a press release on Saturday that the price of the Eletre SUV made in Wuhan will drop by almost 50% as a direct result of… Canada reduces tariffswhich reduces import duties on Chinese-made electric vehicles from 100% to just 6.1%.
Lotus expects the change to have an immediate and meaningful impact on demand. Eletre’s wholesale deliveries are expected to see “exponential growth” as the benefits of the tariff flow, the company said.
“We warmly welcome the new and improved tariff policy, which creates a more open and fair market environment for global car brands,” Lotus CEO Qingfeng Feng said in a statement.
The policy shift was announced last week by Prime Minister Mark Carney, who said Canada would allow up to Imports 49,000 Chinese electric cars Annually in exchange for reducing customs duties on some Canadian exports to China, such as canola.
In the context of Canada’s overall automobile market, this number remains relatively small at only about 2.5% of GDP 1.9 million new cars It was sold in the country last year. However, the share is expected to grow, rising to nearly 70,000 electric vehicles over the next five years.
More than half of these must be imports Affordable models Priced at $35,000 CAD ($25,000 USD) or less. But the deal also leaves room for luxury cars, something Lotus appears to be excited about.
The automaker launched the Eletre in Canada two years ago with a starting price of C$126,800. However, Lotus’ website and online configurator only list the ultra-premium Eletre Carbon, which carries a sticker price of C$313,500 (US$229,900).
It gets a 905-horsepower dual motor, rockets from 0 to 60 mph in less than three seconds, and offers an estimated 280 miles of range from its 109-kilowatt-hour battery.
However, the reduced tariffs were only meant to bring a wave of six-figure electric cars. If Lotus chooses to reintroduce the entry-level Eletre, a roughly 50% price cut would put it in the same ballpark as the Tesla Model Ywhile being more upscale and performance-focused.
Lotus is unlikely to be the only carmaker to benefit from the new tariff policy. More automakers may announce their own price adjustments in the coming weeks and months as Canada’s reduced tariffs on Chinese electric vehicles begin to take shape.
Contact the author: suvrat.kothari@insideevs.com
