Prices for high-end electric performance SUVs made in China are set to drop significantly for Canadians.
British sports car maker Lotus Technology, controlled by China’s Geely Group, welcomed Canada’s decision to readjust tariffs that will result in significant price cuts for its high-performance electric SUVs.
The automaker said in a press release on Saturday that the price of its Wuhan-made Eletre SUV will drop by about 50% as Canada slashes import duties on Chinese-made electric vehicles from a punitive 100% to 6.1%.
Lotus expects this change to have an immediate and meaningful impact on demand. Eletre’s wholesale deliveries are expected to see “exponential growth” as tariff concessions come into effect, the company said.
2024 Lotus Eletre S exterior rear quarter
Lotus Cars CEO Feng Qingfeng said in a statement: “We warmly welcome the new and optimized tariff policy, which creates a more open and fair market environment for international automobile brands.”
Canadian Prime Minister Mark Carney announced the policy shift last week, saying Canada would allow imports of up to 49,000 Chinese electric vehicles per year in exchange for lower tariffs on certain Canadian canola exports to China.
That number is still relatively small for Canada’s overall auto market, accounting for only about 2.5% of the 1.9 million new vehicles sold in the country last year. Still, the quota will increase, to about 70,000 electric vehicles over the next five years.
More than half of the imported products must be affordable models priced at C$35,000 (US$25,000) or less. But the deal also leaves room for high-end cars, something Lotus seems excited about.
2024 Lotus Eletre S interior dashboard
The automaker launched the Eletre in Canada two years ago, with a starting price of C$126,800. Today, however, the Lotus website and online configurator only list the ultra-high-end Eletre Carbon, which carries a price tag of CAD$313,500 (US$229,900).
It features a 905-horsepower dual-motor setup that accelerates from 0 to 60 mph in three seconds and delivers an estimated range of approximately 280 miles from a 109-kilowatt-hour battery.
Even so, lower tariffs won’t be enough to usher in a six-figure wave of electric vehicles. If Lotus chooses to relaunch the entry-level Eletre, a roughly 50% price cut would put it on the same level as the Tesla Model Y, while being more upmarket and performance-focused.
Lotus is unlikely to be the only automaker to take advantage of the new tariffs. As Canada’s reduction in tariffs on Chinese electric vehicles begins to take shape, more automakers are likely to announce their own pricing adjustments in the coming weeks and months.
Contact the author: suvrat.kothari@insideevs.com
