TL;DR
Lotus, the British sports car maker owned by China’s Geely, is exploring manufacturing its new hybrid SUV in the U.S. to counteract recent sales declines. This move aims to expand its presence in the American market amid tariff challenges.
British sports car maker Lotus, owned by China’s Geely, is considering establishing manufacturing of its new plug-in hybrid SUV in the United States to address declining sales and tariffs affecting its Chinese-made vehicles.
Lotus experienced a 46% drop in global vehicle deliveries in 2025, totaling 6,520 units, primarily due to tariffs and supply chain disruptions impacting its Chinese production. To counteract these challenges, the company is evaluating U.S. manufacturing options for its upcoming hybrid SUV, aiming to better serve the North American market and reduce costs associated with tariffs. This strategic shift reflects Lotus’s broader effort to regain market share in the highly competitive U.S. luxury and performance SUV segment, which has seen increasing demand for electrified models.While specific plans, such as location and timeline, are still under discussion, sources indicate that Lotus’s management views U.S. production as a potential catalyst for a sales rebound. The company has not yet officially announced a manufacturing plan or timeline but is actively exploring the feasibility of local assembly or production facilities.
Potential U.S. Production Could Reshape Lotus’s Market Strategy
This move could significantly alter Lotus’s approach to the U.S. market, potentially enabling faster delivery times, lower import tariffs, and a stronger brand presence. For consumers, local manufacturing might also translate into more competitive pricing and increased availability of Lotus’s hybrid models. The decision underscores how global supply chain challenges and tariff policies are influencing automakers’ manufacturing strategies, especially for premium brands seeking growth in North America.
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Recent Declines and Strategic Shift in Lotus’s Global Operations
Lotus, traditionally a British sports car manufacturer, was acquired by Geely in 2017. Since then, it has expanded its lineup to include hybrid and electric vehicles, aiming to modernize its brand. However, in 2025, the company faced a 46% decline in global deliveries, largely due to tariffs imposed on Chinese-made vehicles and supply chain disruptions caused by geopolitical tensions and pandemic-related issues. These challenges prompted Lotus to consider new manufacturing strategies, including potential U.S. production, to stabilize and grow its sales.
Historically, Lotus has focused on niche markets with high-performance models, but the company is now seeking broader appeal through electrification and local manufacturing efforts to tap into the growing U.S. EV and hybrid SUV market.
“The company sees local manufacturing in the U.S. as a key step to improve sales and reduce costs, especially with the increasing demand for hybrid and electric vehicles.”
— an anonymous source familiar with Lotus’s plans
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Details of Lotus’s U.S. Manufacturing Plans Remain Unclear
It is not yet confirmed whether Lotus will establish a new factory, partner with existing facilities, or simply assemble vehicles locally. The timeline for any potential U.S. production remains uncertain, and official announcements are pending. Additionally, the impact on pricing, supply chain logistics, and market reception is still unknown as discussions are ongoing.
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Next Steps Include Feasibility Studies and Potential Announcements
Lotus is expected to conduct detailed feasibility assessments over the coming months, with possible announcements of manufacturing plans or partnerships by late 2026. The company aims to finalize its strategy to capitalize on the U.S. market’s demand for electrified SUVs and to mitigate tariff-related costs. Observers will be watching for official confirmation and specific details about the production site and schedule.
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Key Questions
Why is Lotus considering U.S. manufacturing now?
Lotus is exploring U.S. production to counteract declining sales caused by tariffs and supply chain issues affecting its Chinese-made vehicles, aiming to reduce costs and improve market access.
Will Lotus build a new factory in the U.S.?
It is not yet confirmed whether Lotus will establish a new factory or partner with existing facilities; plans are still under consideration.
How might this affect Lotus’s vehicle prices?
If U.S. manufacturing is implemented, it could lower import tariffs and shipping costs, potentially leading to more competitive pricing for American consumers.
When will Lotus make an official announcement about U.S. production?
No official timeline has been announced, but feasibility studies are expected to conclude by late 2026, with possible updates thereafter.
What models will be produced in the U.S.?
While specific models are not confirmed, Lotus’s upcoming hybrid SUV is the primary candidate for U.S. manufacturing, aiming to boost sales in North America.
Source: Nikkei Asia
