Produced by Zhineng Automobile
Lotus is now preparing to change its name back to Lotus, and it has been following the route of the luxury electric vehicle market. From what was shared in its financial report for the first half of 2024, we can try to explore whether this luxury EV market can stand up.
● In the first half of 2024, Lotus Technology's total revenue reached $398 million, a significant increase of 206% year-on-year.
● Gross margin for the first half of the year was 13%, a significant increase from 5% for the same period in 2023.
● Total product deliveries reached 4,873 units, a year-on-year increase of 239%.
● Lotus' net loss was US$460 million, an increase of 30% year-on-year.
The delivery target for 2024 has been revised to 12,000 units.
Is it still possible to do high-end pure electric vehicles, which is a core question? From January to August 2024, China's market of more than 500,000 new energy vehicles will reach 175,000, which is mainly due to the increase in sales of the M9.
Part 1
Market competition
Lotus Technologies has adopted a global market strategy, ensuring a balanced distribution of deliveries in key markets through a network of more than 200 stores in prime locations around the world, contributing 20-30% of deliveries respectively, 25% in China, 30% in Europe, 26% in North America and 19% in others.
In the luxury electric vehicle market, Lotus Technology faces fierce competition from competitors such as Tesla, Porsche, and NIO, and the improvement of market share is still an issue that the company needs to continue to pay attention to.
Changes in tariff policies and the international trade environment may affect the company's pricing strategy and sales channel layout in different markets, and it is necessary to quickly adjust its strategy in an uncertain market environment to maintain a competitive advantage.
Part 2
Strategic Alignment and Future Prospects
JUDGING FROM THE PRODUCT MATRIX, FROM THE VERY BEGINNING, EVIJA, EMIRA, ELETRE AND EMEYA HAVE ALSO TRIED TO PLAY CARDS A FEW TIMES, BUT THE EFFECT IS NOT OBVIOUS.
The next two new cars in 2025/2026 and 2026/2027 are important brands for the brand.
Lotus Technology launched its "Win26" initiative in 2024 to optimize internal processes and structures, implement overall cost control, and adapt products and marketing strategies to the world's diverse markets.
The core objective of the program is to achieve positive EBITDA and operating cash flow by 2026. Specific strategic directions include:
● Optimized cost structure: Lotus Technology plans to improve its financial performance in the medium to long term by improving production efficiency, optimizing supply chain management, and executing more targeted pricing strategies in key markets around the world.
● Product and service diversification: The company launched the Lotus Chapman Bespoke premium customization service to further enhance the brand's luxury positioning, and plans to meet the needs of high-end customers through personalized options and the delivery of limited-edition customized models, driving continuous improvement in gross margin.
● Strengthen technology R&D and software revenue growth: With the deepening of technology cooperation and the continuous research and development of intelligent and connected technologies, Lotus Technology is likely to see more growth in technology service revenue and software subscription revenue in the coming years.
Lotus Technology's management, CEO Feng Qingfeng and CFO Li Kunlong, both emphasized the importance of the "Win26" program in the coming years to achieve sustainable growth and greater market competitiveness by optimizing processes and strengthening brand and market resilience.
Li Kunlong said that the company will firmly implement this plan, optimize the balance sheet, and strive to fulfill the company's commitment to shareholders.
Compared with the price range of fuel vehicles and pure electric vehicles, this market is very niche and difficult to convert.
brief summary
It's hard to say whether it will be possible to make a pure electric luxury car, whether it is Rivian, Lucid or Lotus. And the problem that new energy vehicles are currently facing is that the price continues. Now and for a long time to come, if there is only a pure electric premium, no consumer will treat the electric car as a special product!