One of the biggest stories to hit the automotive sector in Canada in recent months, is the announcement by the Federal Government, of allowing Chinese Electric Vehicles into the country at a tariff rate of 6.1%, down from the 100% previous agreed to by both the U.S. and Canada.

While there are many questions surrounding this decision, particularly in the run up to renegotiations of the Canada- U.S.-Mexico free-trade agreement (CUSMA) in July, already we are seeing signs that this change in policy by the Government of Canada is resulting in some significant shifts within the automotive manufacturing and retail landscape.

A good example is Lotus Cars. This storied brand, which today is 51% owned by Geely, is now shipping its stylish Eletre, electric crossover utility from its production facility in Wuhan, China to Canada, where enthusiastic dealers are ready to offer them to customers at select retail outlets. This represents the very Chinese assembled electric SUV to be sold under the Government of Canada’s new quota program. To gain insight into this strategy and what implications it potentially has for the wider automotive retail market in Canada (and potentially North America), Autosphere recently sat down with Massimiliano (Max) Trantini, President & CEO, Lotus Americas.

Autosphere: When we look at the Canadian market, what do you feel are some of the key factors consumers are looking for, particularly when it comes to an electric SUV such as the Eletre?

Massimiliano Trantini: What we have seen, is that Canadian customers tend to gravitate toward SUVs and depending on the market, they are also focused on enviromental sustainability, particularly in regions such as the B.C. lower mainland and Quebec. In the segment that Lotus is targeting, customers also want ample size and space in their vehicle, and they also want performance. We believe, that within that context, an all-electric SUV is the right product and answer for them. Additionally, it needs to blend practicality with that performance, so in the case of the Eletre, for example it offers seating for five, a trunk volume of 690 litres, while offering acceleration, handling and braking you’d expect from a Lotus. So for us, it represent a highly suitable product for the market. Within the Canadian market for luxury SUVs there’s also a bit of polarization and you have distinct price points at the $170-$180,000 and $100-$120,000 range. These tend to attract very specific types of customers, but with a product like the Eletre, we feel we have a luxury SUV that really competes in the former category, while offering a price point of around $120,000. Essentially, it’s about creating a new niche of product that blends high quality and high performance with a unique style and heritage at a value oriented price point in its segment.

“Now, things are much different and our pricing structure allows us to create a much stronger value proposition.”

— Massimiliano (Max) Trantini, President & CEO, Lotus Americas

AS: Going into specifics, who do you see as your target customer in Canada for the Eletre?

MT: Traditionally, the Lotus customer in North America (and we’re talking about core customers), tend to be aged between 45-60 and predominantly male, and enthusiasts, who own more than one Lotus vehicle. What we are seeing however, is that while that core customer base remains, there are younger and increasingly more female customers interested in our brand, people that might compare our offerings with those from premium German brands. So essentially we see two segments of customers, the traditional Lotus client base and a new type of customer that’s looking for value and differentiation within the premium market space.

AS: Let’s talk about pricing, especially because with the change in tariff policy that’s made a huge difference to Lotus’ approach for vehicles like the Eletre, correct?

MT: This has had a huge impact on us. When the original 100% China EV tariffs came in, it simply didn’t make sense for us to bring vehicles like the Eletre to Canada, particularly at a price point where the value proposition was limited. Now, things are much different and our pricing structure allows us to create a much stronger value proposition and cater to buyers seeking out vehicles within the $120-$140,000 price range, which we feel enables us and our dealers to offer customers a highly attractive option in the market.

AS: Looking at sales volumes, what are your projected targets for this year in Canada, and perhaps into 2027?

MT: It’s important to stress that Lotus is still a niche brand, so our strategy, particularly with an EV like the Eletre is not about chasing volume. While we are looking to increase our sales, for us, the important part is creating a very strong partnership with our dealers and investors. We are in business together, and that means that the proposition we offer is sound and is profitable not only for us as a manufacturer but our dealers as well. Additionally, this partnership has to be rewarding for our customers and that they see the value in what we bring to the table. Yes, we are looking to increase the number of vehicles we sell, but it is important to ensure we serve the customer in the best way we can. At Lotus, we believe that our relationship with the customer doesn’t end with sales transaction but instead, starts there and carries on through the service side of vehicle ownership. That’s where we feel the real value exists when it comes to the business proposition, and having that strong, long-term relationship with the customer, will strengthen the relationship with the dealer and that in turn, gives us a solid foundation from which to start and grow our sales in the Canadian market.

AS: When we look at EVs, it’s not just about purchasing a vehicle, but an entire transportation system. Can you tell us a little about your approach to charging infrastructure and what that means for customers who are looking to purchase a vehicle like the Eletre?

MT: If we start with the vehicle, the Eletre offers an 800-volt electrical system. Currently, we have one of the fastest charging systems on the market. In Canada and the U.S., we can charge up to 350 kilowatts and you can charge from 20% to 80% battery life in less than 15 minutes. In China, we offer even faster options, including 600 kW charging. Getting back to Canada, that 15 minute charging time narrows the difference between an EV and a traditional ICE vehicle in terms of filling up at a gas station. While there has been a push by the federal government and the provinces to invest in charging infrastructure, Canada is a vast country and the infrastructure is still inconsistent, with the majority of it concentrated in the province of Quebec as well as the Metro Toronto and Vancouver areas. Nevertheless, we have made a concerted effort to minimize any issues around operation and range anxiety. By combining fast-charging infrastructure with a 500 km range on the Eletre, it takes away a good deal of that uncertainty and with the Government of Canada committed to investing $1.5 billion over the next three years, the situation regarding charging is only likely to improve going forward.

AS: Are there any aspects regarding the retail experience among dealers in Canada that are designed to exude the unique brand proposition that Lotus offers?

MT: First of all, I want to share that our dealers are very loyal and in many cases have been working with the brand for a very long time. Even when we weren’t able to offer new products they stood by us and continued to cultivate and promote the brand. Now, with new product coming, they are excited. They are also in a unique position because there is such a strong affection for the Lotus brand and such a solid enthusiast customer base. Loyalty runs deep for both our dealers and our customers, and that reflects in the way in which we will grow and expand our presence while remaining true to the brand. We are also fortunate in that there is very open dialogue between us, our dealers and our customers. They will tell us what they love about the brand, the product and experience, and also where we need to improve. We take this feedback very seriously and it’s from this that we’ve been able to deliver vehicles like the Eletre, as well as continuing to enhance our product offering and grow our portfolio in the future.

AS: Is there anything else you’d like to mention?

MT: I think just to say that we are here, in the market, with a new EV product and we’re ready to go. A year ago, with the 100% EV tariffs, it felt that all the work we had done in trying to bring the Eletre here to Canada was for nothing, but now, looking back, it was a blessing because all that time creating a plan to bring the vehicle and support it through our dealer network ultimately paid off. When the tariffs were reduced, we were first out of the gate with an EV that was ready for the Canadian market and will be available to customers through our retail network this year. Our objective is to continue promoting awareness around the Lotus brand and our product, to let the public know we are open for business and they can book a test drive and see what we’re all about. This represents a new chapter for Lotus Cars here in Canada and North America, and we’re excited about the future.