Lotus’ Entry Into China’s Car Production To Propel The Automotive Market

Feb-2019 | 99Strategy | Chemicals & Materials

The Chinese owner of Lotus is planning to start the production of the British sports car brand. This move by the firm is supposed to help in propelling the automotive market in China region. Reportedly, this production is supposed to be carried out in China for the first time. The novel plant in Wuhan city is supposed to have an investment of almost $1.3 Billion, as per the firm job advertisements and government papers. The earlier unreported plans are Zhejiang Geely Holding Group’s foremost shift to shake up the British trademark since its acquisition of a bulk stake in 2017.

The shift is in line with Geely’s goals to manufacture more up-market cars and drop its reputation for imitator designs and inferior quality. The firm’s latest move presents a potentially positive impact on the global market in the future. For Lotus, it might offer higher production volumes and novel models including SUVs to improve its sales. The increased production volumes along with additional models are supposed to boost the global automotive market in the upcoming period.

Alan Kang, Analyst, LMC Automotive, Shanghai, proclaimed that for Geely, to go high-end might help it grab more market share. The firm needs to take this action to better contend with worldwide brands and firm its position in the global market. Currently, Lotus cars are manufactured in Norfolk, England. In a common statement, Geely and Lotus proclaimed that whilst Norfolk was said to be Lotus’s manufacturing home, an important part of the firm’s plan to revive the brand was enlarging the brand’s manufacturing footprint on a worldwide level. The company proclaimed that the detailed information on additional models and locations will be disclosed in due course as the firm’s plan moves ahead.