What happens when Lotus culls the Elise, Exige and Evora at the same time and replaces it with just one model, the Emira? Low sales. Well, hold on, not exactly. Replacing the old models with the new Emira should have been a strategic move for Lotus to mitigate potential losses. To ensure a smooth transition, new Lotus should have taken measures to have a substantial inventory of Emira’s ready. This inventory would act as a buffer, helping to cover any potential sales decline during the initial phase of the Emira’s release. However, it appears new Lotus relied on the motoring press to act as their buffer, the motoring press that the new Lotus has in their pocket. Especially the British press who have become surrogate outliers for spreading the Lotus Emira gospel through numerous digital media platforms.
New Lotus employs a robust marketing strategy, enlisting influencers and YouTubers to promote their brand. They heavily invest in marketing initiatives, evident by their significant presence at events like the 2023 Goodwood Festival of Speed. At the festival, Lotus showcased their products in the mother of all show stands, a venture that likely required an estimated budget of around £200,000 to commission.
The company’s financial stability has notably improved since being acquired by Geely, giving them access to abundant financial resources. It’s estimated that Geely has invested around £500 million, with further investment on the way.
This substantial financial backing has allowed new Lotus to undertake ambitious marketing campaigns and leverage influencer partnerships to enhance brand awareness. By participating in high-profile events and promoting their products through digital platforms and media channels, Lotus aims to reach a broader audience and attract potential customers.
Despite receiving numerous accolades for the Emira and executing well-planned launch schedules, new Lotus invested heavily in media relations, effectively buying the media with special access, and offering all-expenses-paid VIP trips to exotic destinations with first-class service. Despite these efforts and expenditures, the sales figures for the new Lotus Emira in 2022 were disappointing, with only 576 units sold. This marked a significant decline compared to the previous year, 2021, which generated 1,566 units sold, prior to the discontinuation of the older models.
New Lotus blamed supply chain issues and production problems but they may as well blame it on the sunshine. However, new Lotus remains bullish remaining steadfastly optimistic that 2023 will be a record sales year. A record year for Lotus would signify surpassing the milestone of selling more than 5,053 units, a figure previously achieved in 2005. However, their ambitions extend far beyond this accomplishment. The company has set its sights on selling over 150,000 units annually by the year 2028.
However, reaching the 150,000 unit mark will undoubtedly present substantial challenges. The company will need to address various factors, such as increasing production capacity, maintaining product quality, and ensuring effective distribution channels to accommodate potential demand.
Is there a demand for new Lotus? The facts are laid bare for all to see, at the moment no, there is little demand for new Lotus.
The Eletra has joined the Emira to offer potential Lotus buyers more options and more models will follow. Amidst all the information shared, what is conspicuously missing holds significant intrigue. Lotus has chosen not to disclose the number of pre-orders received for the Eletra. Similarly, they have remained tight-lipped regarding the current demand cycle for the Emira.
This lack of transparency regarding pre-orders and demand figures raises questions about the true level of interest surrounding these new models. The decision to keep this information undisclosed could be strategic, aimed at controlling narratives and managing expectations. It may also indicate that the pre-order and demand figures might not be as impressive as the company had hoped, and revealing them might undermine the positive image they are trying to project.
Suppose we consider the hypothetical scenario that the Emira had 10,000 confirmed orders for 2023. In such a case, it is likely that Lotus would be announcing this achievement with great enthusiasm and fanfare, like a tenor performing a powerful song at the last night of the proms.
However, the absence of any such announcement from Lotus suggests that the actual number of confirmed orders for the Emira might not be as substantial as one would expect.