WUHAN: Lotus Technology, which develops electric cars for the Lotus brand globally, has signed an investment pact with a unit of EV upstart Nio Inc, as the iconic British sports and racing-car maker’s Chinese owners seek to transform it into an all-electric brand.
Lotus Technology and Nio will explore collaboration in areas including high-end intelligent EVs, Lotus said in a statement.
The company, which broke ground for the global headquarters of Lotus Technology in Wuhan today, plans to roll out new EV models over the next five years, according to the statement.
The first model, a sports utility vehicle codenamed Type 132, will debut next year. It will be followed in 2023 by a four-door coupe and another SUV in 2025. An all-new electric sports car, Type 135, will hit the market in 2026.
The models are in addition to the Evija all-electric hypercar and the Emira, the last petrol-powered sports car from Lotus, which will both be built at Hethel in the UK, Lotus said.
A separate factory already under construction in Wuhan, with the capacity to make 150,000 cars a year, will be completed soon, with production set to start later this year.
The deal with Nio Capital, the investment arm of Nio, was part of a funding round that valued Lotus Technology at 15 billion yuan (RM9.6bil), Bloomberg News reported earlier, citing a person familiar with the matter who asked not to be identified because the matter is private.
Chinese billionaire Li Shufu founded Zhejiang Geely Holding Group Co, which also controls Sweden’s Volvo Cars, and has made a number of strategic moves to add momentum to his carmaking empire as the global auto industry transitions toward electrification and other alternative energies.
The Hangzhou-based carmaker has forged tie-ups with companies including Daimler AG and Renault SA.
Geely bought a stake in Group Lotus in 2017. It owns 51% of the company, including Lotus Cars and consultancy Lotus Engineering, while Malaysia’s Etika Automotive Bhd owns the rest.
Geely is weighing an initial public offering of Lotus Cars, or just its EV unit, as soon as next year, Bloomberg News reported in April.
A listing could value the entire business, including its combustion-driven sports and racing cars, at more than US$15 billion, people familiar with the matter said then.
