(Yicai) May 14 -- Lotus Technology, the British luxury car marque owned by China's Geely Holding Group, is ditching its all-electric strategy and resetting around hybrids and gasoline sports cars because of the complex market environment, its chief executive officer said.

Lotus will release the Emira 420, a new internal combustion engine sports model, in coming weeks, while it also plans to launch a hybrid hypercar, the Type 135, in 2028, Feng Qingfeng said in a letter sent to staff yesterday. The Wuhan-based company will only pivot to full electrification once market conditions are ripe, he added.

Just two days earlier, Lotus unveiled its Focus 2030 plan, saying it would take a flexible approach across ICE models, plug-in hybrid electric vehicles and battery EVs, with a target mix of roughly 60:40 between hybrids and BEVs across its electrified portfolio during the move to full electrification.

Lotus’ stock price [NASDAQ: LOT] closed 3.4 percent lower at USD1.43 in New York yesterday, 

Established in 1948, Lotus was once one of the world's top three sports car manufacturers along with Porsche and Ferrari. After getting into financial difficulties, it was first acquired by General Motors in 1986 and then by Proton in 1996, before Geely took control in 2017.

After Hangzhou-based Geely took the reins, Lotus set out a 10-year revival plan centered on a full switch to electrification and smarter, software-driven vehicles by 2028. The brand then launched a string of BEV models, including the Evija, Eletre, and Emeya.

But the electric sports car market has fallen short of expectations. Lotus’s global sales slumped 46 percent last year to 6,520 units, while revenue tumbled 44 percent to USD519 million, according to its annual earnings report released last month. Even so, a better product mix and cost controls helped slash the brand’s net loss by 58 percent to USD464 million.

Lotus will no longer blindly chase sales growth, Feng said in the letter, but will instead focus on higher profit margins. Aiming to turn a profit next year, he said, it also plans to cut costs further by combining its sports car research, development, and manufacturing operations in the United Kingdom with its China-based electrification and intelligent-technology platform.

Editors: Dou Shicong, Martin Kadiev