Lotus Technology, the British sports car maker majority-owned by China’s Geely group, is welcoming Canada’s decision to reset its tariff policy that’s set to result in a dramatic price reduction for its high-performance electric SUV.
The automaker said in a press release Saturday that the price of its Wuhan-made Eletre SUV will drop by roughly 50% as a direct result of Canada’s reduced tariffs, which slashes import duties on Chinese-made EVs from a punitive 100% to just 6.1%.
Lotus expects the change to have an immediate and meaningful impact on demand. Wholesale deliveries of the Eletre are projected to see “exponential growth” as the tariff benefits flow through, the company said.
“We extend our warm welcome to the new, optimized tariff policy, which creates a more open and fair market environment for international auto 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 49,000 Chinese EV imports annually in exchange for reduced tariffs on certain Canadian exports to China such as canola.
In the context of Canada’s overall auto market, that number remains relatively small at only about 2.5% of the 1.9 million new vehicles sold in the country last year. Still, the quota is set to grow, rising to roughly 70,000 EVs within the next five years.
More than half of those imports would need to be affordable models priced at $35,000 Canadian ($25,000 U.S.) or less. But the deal also leaves room for premium vehicles, something that Lotus seems excited about.
The automaker launched the Eletre in Canada two years ago with a starting price of $126,800 Canadian. Today, however, the Lotus website and online configurator only list the ultra high-end Eletre Carbon, which carries a sticker price of $313,500 Canadian ($229,900 U.S.).
It gets a 905-horsepower dual-motor setup, rockets from 0 to 60 miles per hour in under three seconds and offers an estimated range of about 280 miles from its 109-kilowatt-hour battery.
Even so, the reduced tariffs were barely meant to bring in a wave of six-figure EVs. If Lotus chooses to reintroduce the entry-level Eletre, the roughly 50% price cut would put it in the same ballpark as a Tesla Model Y, while being far more upscale and performance focused.
And Lotus is unlikely to be the only carmaker to take advantage of the new tariff policy. More automakers might announce their own pricing adjustments in the weeks and months ahead as Canada’s reduced tariffs on Chinese EVs begin to take shape.
Contact the author: suvrat.kothari@insideevs.com
