Lotus to become first Chinese EV brand in Canada under new tariff agreement, CEO says

Lotus is poised to become the first Chinese electric vehicle brand to enter the Canadian market under the 6.1% tariff, according to CEO Feng Qingfeng, who revealed the company has temporarily suspended exports to the Middle East due to ongoing regional conflicts.

“The current conflict [in the Middle East] has slightly affected us, as local dealers regularly update us on the situation. We’ve paused some vehicle exports to the Middle East,” Feng told Chinese media Economic Observer.

The announcement came just a day after Lotus unveiled its LTS (Lotus Tuned Specification) engineering standard and announced that its first super-hybrid architecture vehicle, the new Lotus For Me, will launch in China by late March before entering European markets mid-year.

“We will be the first Chinese brand to enter Canada (under the new tariff),” Feng stated. “The Canadian market opportunity is too precious to miss. Since we’ve taken the lead, we must capitalise on this advantage. The growth in Canada may compensate for some of our losses in the Middle East.”

The market entry follows recent diplomatic developments between China and Canada. During the Canadian Prime Minister’s official visit to China from January 14-17, both countries reached a broad consensus on deepening economic and trade cooperation. Canada will allocate a quota of 49,000 Chinese electric vehicles annually, which will enjoy a most-favoured-nation tariff rate of 6.1% without the additional 100% tariff. This quota will increase gradually according to a set proportion.

Lotus has already established six dealerships in Canada and plans to expand to approximately twelve this year. “We’ve already begun production. If Canada releases detailed tariff implementation guidelines in March, our vehicles can be exported immediately,” Feng explained.

The British-based sports car manufacturer, founded in 1948 and acquired by Geely in 2017, has maintained its production presence in the UK while expanding its global footprint. North America accounted for 21% of Lotus sports car global deliveries in 2024, with the company’s UK Hethel factory serving as a crucial export hub, particularly for the US market, where 60% of UK-produced Lotus sports cars are sold.

Feng outlined the company’s ideal sales distribution as “3331” – with China, Europe, and the United States each accounting for 30% of sales, and other countries and regions making up the remaining 10%. Lotus is currently focusing its efforts on the Chinese and European markets.