British sportscar maker Lotus plans China sales expansion to take on Porsche (updated)

Esprit Holdings

07/09/2021 08:47

(Adds quotes)
    BEIJING, Sept 7 (Reuters) - British sportscar maker Lotus
plans to open up to 70 showrooms in China by 2024 and start
production at its new Wuhan factory next year to ramp up
competition with rival Porsche, Chief Executive Feng Qingfeng
told Reuters on Tuesday. 
    Premium and luxury car sales are growing in China as
coronavirus pandemic travel restrictions leave consumers in the
world's biggest car market with more money to spend.
 urn:newsml:reuters.com:*:nL8N2Q83HP  
    Feng said Lotus, which is owned by Chinese firm Geely
 GEELY.UL  and Malaysia's Etika Automotive, will begin
production at its Wuhan factory next year, producing around
2,000 compact SUVs. 
    The plant, which is still under construction, would ramp up
to full production of 20,000 cars in 2023, Feng told Reuters in
a telephone call from Hangzhou, where Geely is headquartered.
    The cars will be positioned in a similar segment to rival
Porsche  PSHG_p.DE  and higher than BMW  BMWG.DE  and Audi, Feng
said. Porsche has said it sold 88,968 cars in China last year
thanks to demand for its Macan compact sports-utility vehicle.
    Feng said Lotus will open more than 20 showrooms next year,
first targeting major cities like Beijing and Shanghai. It will
expand the network further over 2023 and 2024 to include cities
like eastern Suzhou and Ningbo for a total of 50-70 showrooms
around the country.
    Lotus, the maker of the Lotus Esprit, famously driven by
James Bond in 1977's "The Spy Who Loved Me", has four showrooms
in China, according to its website.
    Lotus said its Wuhan-based technology unit recently received
an undisclosed investment from Nio Capital, an investment firm
founded by the chief executive of leading Chinese electric
vehicle maker Nio Inc  NIO.N . The technology unit is valued at
15 billion yuan ($2.32 billion). 
    Lotus Technology is studying a possible initial public
offering, potentially in New York, Hong Kong or London, as soon
as 2023 when it would start mass-production in its Wuhan
factory, Feng said. 
    
    ($1 = 6.4558 Chinese yuan renminbi)

 (Reporting by Yilei Sun and Brenda Goh; editing by Jane
Wardell)
 ((Y.Sun@thomsonreuters.com; +86 10 66271262; Reuters Messaging:
y.sun.thomsonreuters.com@reuters.net))