Lotus has confirmed operating losses in the first half of this year amounting to $263million – around £195million – just days after announcing it will lay off nearly half of its UK workforce.
The historic Norfolk-based sport car maker has published its financial results for the opening six months of the calendar, which took a hammering from a major decline in deliveries.
Just 2,813 Lotus cars were sold in the first half of the year, down 43 per cent on the 4,904 recorded between January and the end of June in 2024.
And while its new-generation of electric models – the Electre SUV and Emeya saloon – saw a 21 per cent decline in orders (from 2,428 to 1,922), it was the company’s traditional sports cars that weighed heavy.
Sales plummeted 64 per cent, down to just 891 deliveries of the two-seat Emira in the opening six months of 2025 compared to 2,476 in the previous year.
The results come in the wake of the company confirming it will slash some 550 UK jobs as part of a major restructuring ‘designed to enable Lotus Cars to operate with a flexible and agile business model, allowing it to ramp operations and resources in line with demand, as and when needed’.
Lotus has confirmed operating losses in the first half of this year amounting to $263million – around £195million
Just 2,813 Lotus cars were sold in the first half of the year, down 43%. And while its new-generation of electric models – the Electre SUV (second left) and Emeya saloon (right) – saw a 21% decline in orders, it was the company’s traditional sports cars that weighed heavy
Almost half of all deliveries in the first half of 2025 were made in China, which saw an increase in sales of 13 per cent.
Lotus’ EV models are produced at its state-of-the-art facility in Wuhan.
However, all other markets posted thumping declines.
Europe saw a 41 per cent dive to just 858 sales, while US deliveries plunged 66 per cent.
Lotus blamed President Donald Trump’s threat of 25 per cent tariffs earlier in the year – which have since been negotiated down to 10 per cent for the first 100,000 cars arriving in the United States annually – on the fall in demand in the US.
However, it also identified ‘gradual destocking’ and the ‘phased commencement of upgraded model deliveries’ as factors triggering poor half-year results.
For all other markets around the world, sales slipped by 87 per cent to just 122 cars.
As such, total revenues fell to $218million (£162million), which was a 45 per cent decrease year on year.
Mr. Qingfeng Feng, CEO at Lotus Cars, said a positive performance in the ‘fiercely competitive’ Chinese market ‘underscores the resilience of our strategy’, though admitted to ‘volatile market conditions’ elsewhere.
‘We are confident that we will further strengthen our operations and deliver sustainable value for our shareholders over the long-term.,’ he went on.
Daxue Wang, chief financial officer, added: ‘With deliveries of the upgraded models ramping up in China during the second quarter, we achieved a QoQ [quarter on quarter] revenue growth of 35 per cent, a testament to our product competitiveness.
‘Notably, our gross margin has rebounded meaningfully from the trough as compared with the full year of 2024, supported by disciplined cost controls.
‘We remain committed to enhancing operational efficiency to continue to deliver value for our customers, partners, and shareholders.’
Last week, Lotus Cars confirmed it had launched a consultation process to determine how many roles out of the 1,300-strong workforce at the factory in Norfolk would be retained as it looked to streamline the business.
The news came after the firm announced in April 270 job losses at its Hethel headquarters.
Just two months later, Lotus said it had ‘no plans’ to close the factory – which received a £100million upgrade only in 2022 – following reports that Chinese owner Geely was proposing to shut its UK operations entirely.
However, a poor first 2025 performance and consultation on job losses now casts further doubt on the future of the UK base.
The Lotus Cars headquarters and factory in Hethel – which famously has its own test track – underwent a £100m upgrade in 2022
Hethel has been home to Lotus sports car production since 1966 and retained under Chinese ownership since the multinational took a controlling stake in the business in 2017
Last week, Lotus Cars confirmed it had launched a consultation process to determine how many roles out of the 1,300-strong workforce at the factory in Norfolk would be retained as it looked to streamline the business
Under the proposals announced last week, roles across divisions including engineering, manufacturing, and supporting services will be affected by job cuts
Hethel has been home to Lotus sports car production since 1966 and retained under Chinese ownership since the multinational took a controlling stake in the business in 2017.
Under the proposals announced last week, roles across divisions including engineering, manufacturing, and supporting services will be affected.
A spokeswoman for the group said: ‘The proposal is designed to enable Lotus Cars to operate with a flexible and agile business model, allowing it to ramp operations and resources in line with demand, as and when needed.
‘We believe this is necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment, which is seeing uncertainty with rapid changes in global policies, including tariffs.’
The company added that restructuring is ‘vital to enhancing our future competitiveness in the market’.
It said: ‘The brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus sports car, motorsports and engineering consulting operations.’
Almost half of all Lotus deliveries in the first half of 2025 were made in China, which saw an increase in sales up 13%
Europe saw a 41% decline to just 858 sales, while US deliveries plunged 66%
Lotus blamed President Donald Trump’s threat of 25% tariffs earlier in the year – which have since been negotiated down to 10% for the first 100k cars arriving in the United States annually – on the fall in demand in the US
South Norfolk Council said last week that it is ready to support workers who lose their jobs at the factory.
‘Lotus has been an integral part of South Norfolk since 1966 and we have worked with the company over many years supporting its plans for growth, and we will continue that support,’ commented council leader Daniel Elmer last week.
‘The global situation is very difficult for car manufacturers, especially following the implementation of American tariffs, and we must now hear from the government about what they are planning to do to protect jobs and support our manufacturing businesses.’
A spokesman for the Government’s Department for Business and Trade (DBT) told the Daily Mail: ‘We recognise car makers such as Lotus have been facing significant long-term challenges and we know this announcement will be concerning for workers and their families.
‘This Government inherited some of the highest industrial energy prices in the world, while businesses most impacted by global tariffs have faced increased pressures.’
The DBT added that it had ‘secured landmark trade deals, including our deal with the US that saved thousands of jobs in Britain’.
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