Lotus Technology, a British sports car manufacturer majority-owned by China's Geely group, will experience a significant price reduction for its high-performance electric SUV in Canada following a change in tariff policy. The automaker stated that the price of its Wuhan-made Eletre SUV is projected to decrease by approximately 50%.
This reduction is a direct result of Canada lowering import duties on Chinese-made electric vehicles (EVs) from 100% to 6.1%. Lotus anticipates an immediate and substantial impact on demand, with wholesale deliveries of the Eletre expected to see exponential growth.
Lotus CEO Qingfeng Feng welcomed the new tariff policy, indicating it fosters a more open and equitable market for international auto brands. The policy shift, announced by Prime Minister Mark Carney, permits up to 49,000 Chinese EV imports annually in exchange for reduced tariffs on specific Canadian exports to China, such as canola.
While this quota represents about 2.5% of Canada's total new vehicle sales last year, it is set to expand to approximately 70,000 EVs within five years. The agreement specifies that over half of these imports should be affordable models priced at $35,000 Canadian or less, though it also accommodates premium vehicles like those offered by Lotus.
Two years ago, the Eletre was launched in Canada with a starting price of $126,800 Canadian. Currently, only the ultra high-end Eletre Carbon, priced at $313,500 Canadian ($229,900 U.S.), is listed. This model features a 905-horsepower dual-motor setup, accelerates from 0 to 60 mph in under three seconds, and offers an estimated range of 280 miles from its 109-kilowatt-hour battery.
If Lotus reintroduces an entry-level Eletre, the estimated 50% price reduction would position it competitively with vehicles like the Tesla Model Y, while maintaining a more upscale and performance-oriented profile. Other automakers may also announce pricing adjustments as Canada's revised tariffs on Chinese EVs are implemented.