Lotus Signs Joint Venture Agreement to Build and Sell Cars in China
Lotus has signed a lucrative joint venture agreement that will see the car manufacturer build and sell its vehicles in the world’s largest auto market. The agreement was reached upon between three entities, that is Proton, China and Lotus.
The agreement will see Lotus accelerating development of its cars in China, leveraging on the incentives which are offered by Fujian Provincial Government. Lotus Group and Proton are both subsidiaries of DRB-HICOM Berhad.
While speaking about the agreement, Dato Abdul Harith Abdullah, Proton’s CEO, said that, “The JV Agreement will see the establishment of a new JV Company for the purpose of undertaking research and development (R&D) activities in the use of efficient and advanced technology. The JV Company will then produce and sell Lotus branded passenger cars as well as provide after sales services in connection with its products in the People’s Republic of China.”
“China has appeared to be the top key growth market for Lotus exports and is expected to grow at a very fast rate. Lotus Group is excited about the opportunities of this new Joint Venture,” said Jean0Marc Gales, Lotus CEO.
Despite its plans to start production of their cars in China, Lotus has stated that they will be continuing with manufacturing of its sports car range that is Evora, Elise and Exige, exclusively at its headquarters offices which are located in Hethel, England. This basically means that the Lotus models which will be made in China will be new.