Lotus has launched its first super hybrid SUV, the Lotus FOR ME, with a starting price of 500,000 yuan, sparking debate. The pricing controversy reflects deeper challenges facing the brand, including declining sales and financial performance.
Repeated price reductions have shifted Lotus away from its original ultra-luxury positioning, pulling it out of the high-end vehicle market. With the introduction of its first plug-in hybrid model priced around 500,000 yuan, the brand now faces internal price overlaps and competition, further diluting its long-established premium image and raising serious questions about its brand positioning.
The Lotus FOR ME is available in standard and SE editions, with official starting prices of 508,000 yuan and 558,000 yuan, respectively. As the brand's first mass-produced model built on Lotus's super hybrid architecture, the FOR ME is based on a 900V high-voltage platform. It features a 2.0L turbocharged engine paired with dual electric motors, delivering a combined output of 952 horsepower. The vehicle accelerates from 0 to 100 km/h in 3.3 seconds and is equipped with a 70 kWh battery, offering a comprehensive range of over 1,400 km. Despite these technical specifications, market attention has focused primarily on its pricing strategy.
The starting price of the Lotus FOR ME is only 40,000 yuan lower than that of the brand's all-electric flagship model, the ELETRE "Summer Blossom," which starts at 548,000 yuan. Both models compete in the super SUV segment, with highly similar positioning and overlapping price ranges, leading to internal customer分流 and creating a situation of internal competition.
This is not the first time Lotus has faced controversy over pricing. In February of last year, the brand reduced the starting prices of the ELETRE "Summer Blossom" and EMEYA "Blooming Flowers" by 180,000 yuan and 140,000 yuan, respectively, bringing them into the 500,000 yuan price range. At the time, online discussions highlighted that the price cuts were large enough to purchase an additional BYD Seal, with money to spare for charging. Hashtags such as "Lotus price cuts betray early owners" trended on social media.
Alongside price reductions, Lotus also implemented a "de-contenting" strategy, removing features such as lidar and rear-seat massage functions. Some early owners expressed concerns that the 500,000 yuan pricing undermines the brand's "ultra-luxury" positioning, negatively impacting vehicle resale value and causing identity anxiety among owners.
The decline in prices has also affected Lotus's vehicle resale values. While used car dealers offer varying prices for different Lotus models, the extent of depreciation relative to the original manufacturer's suggested retail price is consistently significant. Data from automotive platforms and used car transactions show that early ELETRE models, originally priced from 828,000 yuan, now typically sell for between 420,000 yuan and 468,000 yuan on the used market, representing a depreciation of 45% to 50%. Similarly, EMEYA models, originally starting at 668,000 yuan, now sell for approximately 408,000 yuan to 579,800 yuan, depreciating by 30% to 40%. Even compared to the reduced 2025 official prices of 548,000 yuan and 528,000 yuan, used models generally sell for 10% to 30% less. The consensus among early owners is that owning a Lotus for one year results in nearly half its value lost, with resale values significantly lower than those of competing luxury and new energy vehicle brands in the same price range.
In 2024, Lotus Group CEO Feng Qingfeng publicly stated that the brand would maintain its million-yuan luxury positioning and avoid participating in price wars. However, within just six months, Lotus significantly reduced prices, citing the need to "broaden the price range and respond to market competition." In a letter to owners, former Lotus China President Mao Jingbo explained the price cuts as a response to market changes but did not address compensation or protection for early owners, further raising doubts about the brand's commitment to its customer base.
In the current market, the Lotus FOR ME faces intense competition in the 500,000 to 600,000 yuan price segment. At the higher end, it competes with traditional luxury hybrid models such as the Porsche Cayenne E-Hybrid and Lamborghini Urus PHEV, brands with decades-established ultra-luxury heritage and strong recognition among high-end consumers. At the lower end, Lotus encounters competition from new energy models like the Xiaomi SU7 Ultra, Zeekr 9X, and AITO M9, which offer more attractive comprehensive advantages in terms of intelligent features and value for money.
The controversy over the new model's pricing reflects broader challenges in Lotus's overall sales and financial performance. Ongoing weak sales directly illustrate the brand's operational difficulties. According to unaudited financial reports for the third quarter and first nine months of 2025, Lotus delivered 4,612 vehicles globally in the first nine months of the year, a decrease of 39.3% year-over-year, averaging only about 500 vehicles per month.
This downturn is not limited to the previous year. In 2024, Lotus achieved global sales of 12,100 vehicles, a record high for the brand but still far below its initial target. In April 2024, the company set an annual sales target of 26,000 units, only to reduce it by 64% to 12,000 units four months later. In 2025, the gap between actual and target sales continued. First-half global sales were 2,813 vehicles, a year-over-year decline of 43%. In August, the company significantly lowered its target from break-even 30,000 units to 12,000 units. Despite the 60% reduction, Lotus's progress toward this revised goal remained sluggish, with only 4,612 vehicles delivered by September, achieving just 30% of the target.
The situation is worsening further in China, Lotus's largest market. Data shows that Lotus sold 2,635 vehicles in China in 2025. In the first two months of 2026, monthly sales dropped to below 100 units, with 89 vehicles sold in January and 87 in February.
Declining sales have continued to pressure Lotus's financial results. Unaudited reports for the first nine months of 2025 show total revenue of $356 million, a decrease of 45.48% year-over-year. Third-quarter revenue was $137 million, down 46% compared to the same period last year. The net loss for the quarter was $65.42 million, while the net loss for the first three quarters reached $378 million.
To reduce costs, Lotus initiated two rounds of large-scale layoffs in 2025. In February, the company cut 270 positions at its UK headquarters and factory. At the end of August, it announced an additional reduction of 550 jobs, representing approximately 40% of its UK workforce.
It has been reported that Feng Qingfeng has been seeking foreign investment to address the company's challenges but has so far been unsuccessful. Additionally, recent rumors suggest that Qin Peiji, President of Lotus China, is under investigation. Although sources within Lotus have denied these claims, it is confirmed that Qin has been absent from two important recent product launches.
Price reductions have failed to reverse the downward trend. With sales continuing to fall, strategic positioning in disarray, and key management figures absent, the future of Lotus remains uncertain.
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