As it takes a step back from plans to only sell full-electric vehicles and introduces a new type of “Hyper Hybrid” Lotus may look to Volvo for the internal combustion engine to pair with its 900-volt electric architecture.
New CEO for Europe Dan Balmer confirmed that with just a two-year time-frame Lotus won’t be developing its own ICE unit, nor will it be working with existing partners Toyota, which provides the Emira‘s V6 or AMG, supplier of the same car’s turbo four. Instead the engine will be sourced from within the Geely group, which could mean turning to Volvo which already has its super-and-turbocharged T8 engine working in a hybrid set up in the XC90.
Another option could be to work with Horse Powertrain, a joint venture with Renault which is developing pure combustion and hybrid drive systems.
“The platform will be based on our existing architecture, so the concept is EV first,” said Balmer. “It’s an innovation that won’t fully be understood for a while, but in China there are already brands taking similar concepts to market. There’ll be a greater understanding of what the technology and platform can deliver over the next 12 to 18 months and then we’ll be ready to come to market as well.”
Balmer confirmed that one of the biggest drivers of Lotus’ U-Turn on its electrification target has been global tariffs on Chinese-made vehicles. In Europe – Lotus’ biggest market – hybrid cars are exempt from these tariffs, which can be as high as 45.3 percent, which would allow Lotus to remain competitive.
“We’ve read the room,” says Balmer. “It’s also about acknowledging that different markets move at different speeds. We play by the rules of those markets as they set them as well.”
In the USA, meanwhile, tariffs have already pushed the price of the Eletre SUV up to the level of a Lamborghini Urus, while the Emeya Hyper GT, for which deliveries have just begun in Europe, may not even make it to America.
Hagerty was also told that it was still unclear if the U.S. was ready for Lotus EVs beyond the Eletre, even though within just a year it has become the world’s biggest market for the Emira sports car, proving that the brand remains popular with enthusiasts.
Lotus has plans for an all-electric two-seater, known as the Type 135, which is due to go on sale in 2027, but Balmer suggested that, at least in some markets, it could be sold alongside the Emira rather than completely replacing it.
