(Yicai) Nov. 25 -- Lotus Technology announced last week that it has decided to abandon its pure electric vehicle strategy and produce its first hybrid car due to disappointing EV adoption in the super luxury category, according to Chief Executive Officer Feng Qingfeng.

In the ultra-deluxe market, where prices exceed USD80,000 per vehicle, the penetration rate of new energy vehicles has failed to meet expectations, Feng said in a recent interview with Yicai. At around 10 percent, it fell short of the Wuhan-based carmaker’s projected 20 percent rate.

In Chinese retail channels, NEVs had a 53 percent adoption rate last month, surpassing fuel cars for the third straight month, according to data from the China Passenger Car Association.

Lotus Tech, which is owned by China’s Geely Holding, is developing hybrid technologies and will use them in various models, Feng pointed out. The Shanghai-based company plans to develop its first hybrid under the Emira brand.

Chinese NEV startups such as Xpeng Motors, Leapmotor, and Changan Automobile's Avatr Technology have also ditched their pure electric strategies, taking the hybrid and extended range paths. Nio reportedly plans to debut its first hybrid in 2026, but the Shanghai-based firm will only sell it overseas. 

Ultra-deluxe car buyers are unique, as they much prefer fossil fuel-powered vehicles, Feng said. They have had ample experience with high-performance gasoline cars, and do not perceive the same level of performance breakthrough in EVs, he pointed out. 

This group of buyers also has not fully experienced the lifestyle benefits of the smart technologies that come with NEVs, Feng noted.

Feng also noted that while China has the highest number of EV charging stations in the world, many areas of the country are still inaccessible, and the imbalance is even more pronounced in global markets. As a result, hybrid technology remains a key direction for electrification, he said.

Lotus Tech's deliveries surged 136 percent to 7,617 vehicles in the nine months ended Sept. 30 from a year earlier, according to its third-quarter financial report. That represented just 63 percent of its 12,000 target for the year.

Editors: Shi Yi, Martin Kadiev