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Lotus Technology Inc.
4/22/2025
If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ms. Demi Zhang, head of IR. Please go ahead.
Thank you, Dorothea. Good morning, good afternoon, and a good evening, everyone. Thank you for joining Lotus Tech's first quarter and the full year 2024 in this call. This is Demi Zhang, the head of IR at Lotus Tech. I'm very honored to introduce company management with us today, CEO Tim Feng Feng and the CFO Da Xue Wang. On today's call, we'll start with prepared remarks from CFO and the CEO first, and then kick off the Q&A session. Before we continue, please be reminded that today's discussion will contain forward-looking statements pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and forward-looking statements involving inherent risks and uncertainties. As such, the company's actual results may be material and different from the view expressed today. The further information regarding risks and uncertainties is included in relevant followings of LOTUS TAC with the U.S. Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements except as required under applicable law. Please also note that our earnings press release and this conference call will include disclosure of non-audited GAAP financial information, as well as un-audited non-GAAP financial measures. Please refer to our press release, which contains a reconciliation of un-audited and non-GAAP measures to comparable GAAP measures, which you can find at ir.group.com. With that, I'd like to turn the call over to our CFO, Mr. Wang, please.
Thank you. Hello distinguished shareholders, analysts, and members of the prize. Thank you very much for joining our Q4 and full year 2024 learnings release. My name is Da-Xue Wang, the Chief Financial Officer of Lotus. I would like to take this opportunity to brief you the financial results of the company. In 2024, the company delivered over 12,000 vehicles, reflecting a year-on-year increase of over 70%. For the fourth quarter, Over 4,500 vehicles were delivered, representing a 20% year-on-year increase. We consider this as a remarkable growth, considering the global trade uncertainties and economic slowdown. As for the revenue, although the fourth quarter results were narrowed by 12% year-on-year to $272 million, the company gained an increase of 36% year-on-year increase to $924 million over the full year. Another achievement we want to highlight is we have achieved a reduction in operation expenses for five quarters in a row. The region execution of efficiency enhancement plans. Now, I would like to further break down our sales by category and by region. It turns out that the lifestyle vehicles increased by 57% year-on-year and accounted for 57% of the total deliveries as well. A region, Europe, the home of Lotus brand, continued to expand with an annual increase of some 180% and contributed nearly 40% of the total deliveries. China, as the second largest market for Lotus, contributed one quarter of the total deliveries. North America, mainly the United States, surged by 15% in 2024, making up 21% of the company's total deliveries. And the rest of the world's regions represented 15% of the total, with nearly 90% of year-on-year growth. For your attention, in the fourth quarter, we started to deliver EMEA in Malaysia, Thailand, Singapore, UAE, and Philippines. For the key financial indicators, deliveries and revenues have been just reported. I will not repeat here. The cost of revenues increased to 895 million US dollars and 301 million US dollars for the full year and for the fourth quarter respectively. As a result, the gross profit margin was lowered to 3% for the full year and negative 11% for the fourth quarter. We reported an operating loss of 736 million US dollars for the year and 189 million dollars for the fourth quarter. That loss was accrued to $107 million for the full year and $441 million for the fourth quarter. For your information, I just made a lot of adjustments under the non-GAAP measures. We're not much different. Then, I'll first stop here and hand over the speaker to Mr. Feng.
Hello, everyone. I'm Feng Qingfeng, the CEO of Dudu Group. I'm here to report on the progress of 24 years.
Hello, everyone. I'm CEO of Lotus Tech, Feng Qingfeng. Allow me to share our key achievements in the year of 2024.
First of all, our overall performance in 2024 is superior to the overall growth of the luxury market, which is ranked number one among the British luxury car brands. Our turnover in 2024 exceeded 12,000, which is 74% higher than in 2023.
Our performance overall is better than the broader luxury market. We have ranked the top among British luxury car brands with over 12,000 vehicles delivered in 2024, a 74% better compared with our performance in 2023.
Currently, we have four models, one SUV, one sedan, one sports car, two sports cars, including our Emera and Super Sports Car Evia.
Currently, we have four models under delivery. We have one SUV, one sedan, or rather GT, and two sports cars, including a Mira and also a Zaya.
We continue to work in the direction of internationalization. This year, we have entered the new markets of Taiwan, Asia, Asia-Pacific, and Yangzhou, which are more than 10 countries.
Last year, we keep exploring our international footprint. We have entered into more than 10 countries in GCC region, Asia, and Oceania. In addition to that, we have also been keeping cost reduction and also efficiency improvement, and we've been achieving operating expense reduction for five consecutive quarters.
At the same time, we also released a concept car, Zero One. This is a revolutionary concept car, which is mainly focused on sustainable materials and re-defining luxury. It has received a lot of praise from the media.
Besides, we have also launched our Theory 1 concept car. This is a revolutionary concept car made with sustainable materials to redefine luxury, and we have gained a wide recognition from our press friends.
This car defines a new style language for our future models and a new definition of sustainable materials.
For this particular vehicle, it has defined our direction for our future models, particularly on its design language and also its sustainable principles.
In terms of ESG, it has achieved a lot of progress and good reviews. It has won the 24-year Retail Association's Sustainable Development Award for Business Transformation. It has also won the 24-year China-European Chamber of Commerce Sustainable Business Award. It has also won the Tourism Award. and continuous supply chain management time cases are included in the Shanghai climate anniversary report, climate science and technology, and released at the 29th United Nations Climate Change Conference.
As for our progress on ESG, we were honoured as highly commenced at Ruta's Sustainability Awards 2024, leading the EV industry within Ruta's Vision 2045 campaign. Lotus was the winner of the 2024 EUCCC Sustainable Business Award and the Green Up Award for outstanding environmental practices. Our sustainable supplier management case was also included in Shanghai Climate Week 2024 Climate Tech InFocus report, and this report was also released at COVID-19.
In the first quarter of 2025, we have delivered 12,082 units. In the middle, we have already delivered 2,000 units.
As for our recent development in 2025, we have already delivered more than 12,000 vehicles in the first three months. And as for the sales at the end, we have already delivered more than 2,000.
As you all know, in China, we have been called Lotus, which means the sound of Lotus. In the past, there was a dispute on the Lotus label. So we have been using Lotus NYO and Chinese Lotus as Chinese trademarks. Through four years of hard work, we got back the English Lotus text trademarks and Chinese lotus trademarks, and achieved the mark of the global brand.
In the past, the Lotus in China was called the English pronunciation of Lotus, and we have to use N-Y-O as part of our logo. But in January 2025, we have successfully reclaimed the proprietary rights of Lotus iconic logo, Lotus wordmark, and the Chinese character of Lotus, Lianhua, in China, ensuring consistency in terms of its trademark across the world.
In terms of the model, we have re-adjusted some of our SUV Electra and the luxury GT E-Maya. In February, our product was upgraded to a fully optimized configuration, and the price competitiveness was significantly improved. When this model was released in February, we started to deliver it in China. In the second quarter, we will start dealing with other countries and regions in Europe.
In addition to that, we have also made a model facelift for our Elettra and EMEA. Specifically in February, we have refreshed the lineup of those two models with upgraded configuration and competitive pricing. In China, the vehicle has been delivered starting from February, and in Q2, the delivery will also commence in the EU and the rest of the world.
At the same time, in February of this year, 16 cities in China launched the MOTU City NOA system, which supports smart highway driving, high speed and city roads, and no cross-country roads. It also supports the functions such as pass-through navigation, smart road selection, and flexibility of obstacles. At the same time, in February, OTA was launched, which allows our products to reach the city limits of door-to-door traffic.
Besides, we have also launched a map-less urban NOA navigation on autopilots in 16 cities across China in February this year. The system can effortlessly achieve lane-changing seamless transition between highways and city roads using data intersections, intelligent lane selection, and smart obstacle avoidance. Starting in February, we have also started our OTA to push this function to our end customers.
This system can make our vehicle to be able to deliver door-to-door intelligent driving.
Starting from quarter two, this function will be available in more than 100 cities in China through OTA.
This year, in March, we, the smart driving company Lotus, and Cao Cao went on a strategic partnership to create a new smart driving platform and accelerate the commercialization of Robotaxi. At the same time, we have started to demonstrate operations in Hangzhou and Suzhou.
In March this year, Lotus' intelligent driving arm, Lotus Robotics, has also established a strategic partnership with Cao Cao Mobility to launch an innovative intelligent mobility platform for Robotaxi. We have also started the pilot operation in the city of Hangzhou and the city of Suzhou. In addition to that, Lotus Technologies' natural capital assessment project was also included in the World Economic Forum report, which demonstrates our ambition and also our progress in sustainable development, particularly among luxury vehicles.
In 2023, when we were in the U.S. IPO, we had a put option. On April 14th of this year, we received a commission notice issued by Geely. It requires our company to purchase the shares of Geely, which was signed on January 31st, 2023, and the shares of Geely, which was held by the UK, which was held by the UK,
On April 14, 2025, we have received the exercise notice from Chile requiring Lotus Tech to purchase 51% of the equity interests in Lotus UK. According to the put option agreement, dated January 31, 2023, between the parties,
In this way, we will have two factories. One factory is in Wuhan, China, and the other is in Heathrow, England. Through these two factories, we can make products that cover four major areas of the world, such as the Middle East, Asia-Pacific, Australia, China, and the United States. These are the four major sales areas.
If we can exercise this push option, we will be able to operate on two factories, Hathor factory in the UK, and Wuhan factory from China. Those two factories can cover four regions, Middle East, APAC, Europe, China, and North America.
According to the base's jurisdiction, Lianhua Group will purchase China's Lianhua Group This strategic acquisition will promote the integration of all business and operations under the Lotus brand and truly realize the one-label partnership.
As for the exercise of a put option from Julie, Lotus expects to acquire 50% of equity interest in Lotus UK through a non-cash transaction based on pre-agreed valuation methodology. Upon completion, Lotus will gain control of Lotus UK and consolidate its financial results. The strategic transaction will enable the company to integrate all global business under Lotus brand.
Subject to potential regulatory approvals, the acquisition is expected to be completed in 2025, this year. 再来讲一下我们的产品线,这个EVAIA是一款超跑,是一个全球限量130台的一个超跑,电动超跑。 It has already started to be delivered around the world.
As for our product pipeline, Evia, this is our hypercar. It has a limited offering of 130 vehicles globally. We have already started the delivery of this hypercar.
The second one is Emera's sports car. Emera's sports car is the largest in the United States. Of course, it will also be distributed globally. In 2025, we will launch Model Year 26, which will adapt to the US market and global law. In 2027, we will make a major upgrade. At the same time, we will meet the standards of the European law, and we will also make an upgrade.
And moving on to our EMIRA sports car. The US market is the biggest market for EMIRA and this vehicle has also been available for global other markets. This year we are going to launch a model year 26 for EMIRA. It will be dedicated to the US market and also meet the compliance requirements for other markets.
in 2027 we are planning a major uplift for emira it will have a more horsepower it will also be compliant to eu7 emission requirements um
As for our lifestyle vehicles, the electronic mayor previously, I briefly mentioned about it that we have already commenced the delivery in China for model year 26 and the delivery for EU, UK and the rest of the world will also start in quarter two.
At the same time, at the end of this year, we will S.O.P. a new electric car. This is a super electric car. In the first quarter of 2016, we started in China, first in China.
At the end of this year, in other words, at the end of 2025, we are planning to launch a PHEV. We would call it a hyper-hybrid model.
This model will start delivery first in China in Q1 next year.
in 2027 we are also planning another new model and by adding this new model together we would be able to deliver our vision of the vision 80 strategy in other words we will have a six models in total and that's all i'd like to share with you thank you well thank you ceo ms affleck
Thank you.
If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Kevin Coelho from Tier 1 Systems. Please go ahead.
Hey, good morning, everyone. Thank you for taking my call. I'm calling as a Lotus investor, as someone who opened an exotic car dealership here in California about 11 years ago, and most of all as a car enthusiast. And basically, really my question is, is there any plan? It seems like you have a really amazing opportunity with the Amira to create something that would be highly in demand here in the U.S. market, which would be something that's lighter weight than... than currently exists right now in the mirror, maybe adding carbon ceramic brakes, carbon bucket seats, some other things to remove a couple hundred pounds, and also increasing the horsepower and redline on the V6, which is an amazing engine. It sounds great. If you look at Porsche, they really have kind of created the recipe that everyone else, I think, should follow. If you look at what the GT3s and the GT3 RSs sell for, I mean, they're going for 100,000 over MSRP right now. They're almost impossible to get. I'd be curious to know, do you have any plans of creating just really like a hardcore, maybe an Amira R with a high revving V6, manual transmission, lightweight? I think that would do amazingly well here in the U.S.
market. 非常感谢你的建议。 因为美国确实是我们Amira的销量表现得非常的好。 Thank you for your question.
I think it's a brilliant suggestion and intact. U.S. is the largest market of Amira. Almost 50% of Amira's sales are all coming from the U.S., and particularly our basics model, very much preferred by our U.S. consumers.
We are also very aware that American consumers are very fond of large-capacity, large-power engines, such as a sports car. At the same time, we have also launched our 2.0T, which is a large-power engine. In fact, at the beginning, we were more worried about the United States, thinking that the United States would prefer the V6 instead of the 2.0. But when the American consumer tested the 2.0T engine with 400 horsepower and the same horsepower as the V6, it was liked by the American consumer. Because the final feeling is still very good, especially the response and response of the 8DCT power system is very good.
Well, we are very clear that our US consumers would prefer engine or model with a higher horsepower and a higher RPM. As a matter of fact, we have another model available in the US market, the 2.0 turbo model. It has also a relatively high horsepower At the very beginning, we were quite concerned about our U.S. consumers that they may only prefer the V6 model instead of the 2.0 turbo model. However, after our consumers' testing drives the 2.0 turbo model with also 400 horsepower, our consumers are very like it, particularly with its power transition, ACCT transmission, and very fast response.
On the V6 engine, we do not plan to expand its horsepower. We are studying a new engine, the V8 engine, to see if it is feasible. We are now studying it. Because the V6 engine will not be able to meet the O7 in the future. So we don't want to spend too much investment on the V6.
As for V6, we, to be honest, do not have the plan to further increase its power because this engine will not be compliant for EU7 emission. However, we are investigating a new power system, which is a V8. it will have a bigger horsepower, and we are currently investigating the feasibility of the V8.
In the beginning of this year, we first made a variety of commemorative versions in Europe, by reducing some weight, by using some special, like the carbon fiber you just mentioned, and so on. We started to launch some limited versions. In the American market, we will also do some research to see if this kind of
And actually, in Europe, we have launched some limited edition with less weight, like the suggestion that you mentioned. We put more carbon fiber materials on it. And we will consider to see if we are going to launch similar models in the U.S. market.
Thank you very much for your advice.
Thank you for your passion for Lotus. Also, thank you for your great suggestion.
Thank you very much. Appreciate it.
Thank you. Your next question comes from Laura Lee from Deutsche Bank US. Please go ahead.
Hey. Well, thank you for taking my question. So my first question is about the ADAS revenue. So what's its contribution over the last year? And any update on the guidance? Any new design we are working on?
Yeah, that's my first question. Thank you, Laura. I will invite Seyapo to give her answer.
Her first question is on the revenue guidance. Yeah.
So you mean for the 2025, right? Yes. Okay. So if you're like, we have a detailed plan, basically it's going to be, you know, like we have improvements compared to the 2024. Let's say that we are waiting for the further approval from the board of directors.
Thank you. And Laura's second question, I remember, is the question on the revenue on the robotics
Okay, so for the robotics, actually, we achieved a pretty, you know, improvement compared to the one year before. And we gained not only the internal data from the Lotus, we also gained some, you know, customers from the outside of the company, and also outside from the TD group. So, like, overall, we've achieved, like, 22 million US dollars from the customers outside the Lotus. So that's something, like, meanwhile, like, our... the profit margin i think with uh we have a pretty high you know margin compared to the sales of goods i mean we are going to be able to keep this number in this year so that's the i think that basically the the revenues from the the robotics side okay okay go to appreciate
My second question is around like the margin trajectory. As you mentioned, for this year and the 26th, are there any like headwind or tailwind on a year-on-year basis we should consider? And also thinking about the tariff situation, are there any like changes on production arrangements that you're considering?
Yeah, thank you, Laura. Her first question is on the margin trajectory for this year and the next year. And also considering the tariff situation, is there any changes? Okay.
So I think the margin is going to be much improved if you compare it to last year. Last year, first, there is a trade in uncertainties. And also, like, we have the stock. So if I could tell you, you know, the stock clearing plans, which cost our profit margin to lower compared to the one year before. But this year, I think the first day where the stock plan is going to be much over and we no longer have this stock clearing requirements. Meanwhile, like, We have a much better product, you know like cost Structure, so that means like however, you know, the gross profit money is going to be much better than the candy and 2024 so that's lower my expectation for the year 2025.
Yeah When you do it, you're a corporate who will you jump stop turn to a margin? Oh
Laura, excuse me, do you do you mind repeat your last question on the tariff? Sorry, your voice was very far away.
Oh, yeah. Yeah. So yeah, the second part is around like the impact of tariff and any like mitigation you're considering, like changes on production arrangement, or just sort of solutions.
Thank you.
Well, definitely we have been affected by the U.S. unbelievably high tariffs, particularly for our lifestyle vehicle, which is produced in China. And for our lifestyle vehicle, we have already stopped its export into the U.S. market. However, our sports car, which is produced in the U.K., has not been affected yet. We are still investigating the market and also we are still doing analysis.
Okay, gotcha. Yeah, that's helpful.
Thank you, Laura. Thank you. Once again, if you wish to ask a question, please press star 1 on your telephone. Your next question comes from from MSIM China. Please go ahead.
Hi, thank you for taking my question. I have two questions, actually. First one is, what are the contributing factors behind the significant decline? in gross profit in fourth quarter of 24. And how much did the intelligent driving and the bespoke service contribute to the service revenue and the gross profit in this fourth quarter?
Thank you, Roy. Can we invite Mr. Wang?
Yeah. So basically, the fourth quarter performance, as you tell us, we have some decline. It's because we cleared the stock And meanwhile, like the, because of the, I started this from the Paris. I mean, for the intelligent driving business, There's an accounting rule exchange change because of the booking policy from the cash basis to the accrual basis in the fourth quarter. So this results in some adjustment, accounting adjustment in the figures. So you can tell from the fourth quarter of the the sales, the revenues from the services, you can see the change. So basically, starting from this year, we already, under the new accounting policies, the gross margin is going to be recovered. And meanwhile, particularly in the service sector, we're going to align the entire driving business with the industry benchmark. So thank you.
Okay, thank you. Thank you. Europe and the UK have a very large sales ratio of 40%. So through Model 1.26, we will improve our profit margin.
And also, I'd like to comment that in 2025, our gross margin is going to be greatly improved due to our launch of the model year 26. As I previously elaborated, the model year 26 lobby launched in Europe, including EU and UK in quarter two, and those two markets actually accounted for more than 40% of our sales. So by launching model year 26, it can help us to improve our gross margin.
Okay, thank you. I have a second question is, what is the revenue and profit margin of the intelligent driving business in the past year, 2024? And any guidance for this following year, 2025, and mid-term revenue and profit margin for vehicles and all the comprehensive service, respectively? What is the plan to improve the margin? Yeah, that's my final question.
Thank you.
Yeah. The benchmarks... margin for the for the intelligent German business is about like 30%. So it's in line with the industrial standard. So and so starting from this year, we're going to not only to you know, improve the margin also they're going to they're going to, you know, like get more clients more business from the market. So I think they're going to further lower the cost is thereby increasing the profit margin.
Okay, thank you.
Thank you, Roy. Thank you. Your next question comes from Tom Liu from Capital Sunrise. Please go ahead.
Thank you for taking my questions. Up to you. The first one is, what's the cash burn rate now and how long is the runway? Is there any significant financing we can expect in the next six months?
Yeah, as you can tell from like our financial performance, we do have, you know, the gap in terms of the cash. And also, we are making the cash gap, you know, field through the operation, through the, you know, investment plans, through the financing. And we are being, you know, closely, you know, contacting the, you know, investing investors in the market. So please, you know, take a close look at our announcement and also the company release. Thank you so much.
Tom, you have another question?
Yes. My second question is about the management capabilities. So we've noticed the recent management shifts and would you mind you share the rationale behind and what makes the current management team the right one to turn around a luxury company? Thank you.
There are two major changes in our management. One is the change in CFO. Wang University also has a lot of financial experience, including experience in the capital market. And it used to be a collective company. It used to be a collective company, so it has made a lot of progress. So we have some changes in CFO.
As for recent management change, we do have to welcome the new CFO, Wang Daxue. He had a rich experience in finance and also capital markets. In addition to that, he also had a great performance in Geely.
The second one is that the sales manager of our Chinese market has made a change. The new sales manager, Qingfeiji, He has also made luxury products in the luxury market. For example, the VW. During the sales of VW, he has been able to sell 80,000 to 90,000 units of VW in a year. He has grown by a lot. He also has a lot of experience in luxury cars.
And another thing I'd like to comment is about the change of the head of sales in China. We have introduced a new China sales president, Qin Peiqi. He had also rich experience in luxury products, particularly with Volvo. During his time with Volvo, he helped the Volvo sales volume increase from 80,000 to 90,000 to more than 180,000 to 190,000 for significant jumps.
Actually, our entire team has a lot of experience in operating luxury cars.
And overall, I just want to say that for our entire management team, we have a seasoned and also rich experience when it comes to luxury brand management.
Although our salesman, Mao Jingbo, used to operate in Benz and Lincoln. Now, we want it to become a global partner. A partner between Europe, the US, the Middle East and Asia. On the one hand, it will be a partner for marketing. On the other hand, it will be a partner for brand and market promotion. In order to ensure the brand reputation of OneLootus globally.
First of all, Ms. Mao-Qin Guo, she previously had a really rich experience with Benz and also Lincoln, and now she is responsible for closest coordination of self-advocation and brands and marketing collaboration covering the regions such as the EU, US, and APAC. The ultimate target is to ensure wireless consistency.
Our signature brand has not changed, it is still our standard. It is our signature designer and our signature brand. So our beautiful products are designed by him, including our concept car Zero One, which has received a lot of praise.
Our chief brand officer, or chief creative officer, Ben Payne, still remains at this position, and he created a lot of brilliant concepts for us, and also the sensational concept car, Fury 1, that I previously mentioned, is also created by him.
Our American CEO is the CEO of Maserati, and he has a lot of experience in luxury cars.
As far ahead of sales in the U.S., he was COO of Maserati, so he can bring us lots of great experiences that he previously gained.
Thank you.
Thank you. There are no further questions at this time. I'll now head back to Ms. Young for closing remarks.
Darcy, do you want to remind everybody how to raise their questions if there is any more?
Once again, that is star one if you wish to ask a question. That's star one on your telephone. Thank you. We have a question from George Tang from Elson Capital. Please go ahead.
Hi, good morning. Thanks, everybody, for your time this morning. I have three quick questions for management. First question is, can management kindly give a high-level guidance on how the put option will impact the company's financials, such as the balance sheet, cash flow, and P&L? It appears there's a pretty high debt-asset ratio of over, I believe, 130% by the end of 2024. How will the acquisition change that number? Thank you.
Thank you, George. I will first invite CFO to give you some color on the question.
So regarding the execution of the put option, we're still going to do the due diligence. I'm talking with the dialogue with the lot of UK. So I think we are going to release the result and what time it's done. And for the phone you just mentioned, it's going to be a non-cash deal, so it's not going to bring the cash to the company. And overall, I think the answer to your question, we can't wait until we finish the investigation and then we get the deal done. So please take a close look at our for the notice. Thank you very much.
Perfect. Thank you. And I have another question, perhaps. This has been burning in the back of many people's minds, but I was wondering what is Lotus's U.S. strategy, market strategy, given the current geopolitical tensions and terrorist situation? And having said that, what do you think would be your target sales for U.S. market this year? Thank you.
Thanks, George. I'll invite the CEO to answer your question.
Actually, this year in the U.S., it's not the most difficult year. Although the flood in California has the greatest impact on us as a living vehicle, it will also have a slight impact on our cars. But I don't think it will have a big impact. So our plans for cars in the U.S. this year have not changed so far. In fact, the inflation may only affect a few of our 200-300 companies. It won't affect them too much.
Yes, in 2025, it is going to be tougher, but particularly we are affected by our lifestyle vehicle, or mainly affected by the tarry hike. As far as sports car, we were slightly affected, so we haven't actually changed our original plan for sports car sales in the U.S. We expect about roughly 200 to 300 sales more because of the tarry in the U.S.,
We are also looking for a solution for the U.S. Because the U.S. market is very important to Lotus. It is the world's largest luxury car market. And for the Lotus brand, the U.S. consumers are quite aware and satisfied with it. So this must be an important market for us. So what we are going to do next is to solve the daily use of cars produced in China. How to enter the United States? We are already studying this. In the future, we will announce our plan at the right time. Because this must be related to the reason for the geopolitics. It is not convenient to announce these plans now. But our determination is to enter the United States.
Finally, we're also exploring our paths and the solutions for the U.S. market. And because the U.S. market is the biggest market for luxury premium vehicle segment, in addition to that, Lotus also has relatively high brand awareness in the U.S. market. So definitely U.S. market will be one of our priorities. In addition to that, we will also keep exploring our feasibility of exporting lifestyle vehicles to the U.S. market. And at this moment, we will not be able to disclose any details, but please feel free to stay tuned to our future announcements. The only thing that I may add is that manufacturing in the U.S.
could be one of our potential solutions.
Thank you. Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. We'll now pause a moment to allow for any final questions to register.
There are no further questions at this time. Yeah, thank you, Darcy.
Well, given the time constraint, I think it will conclude the call very soon. Everyone, thank you very much again for joining us today. If you have any further questions, please feel free to contact our IA team, and this concludes the call. Have a very good day, everyone, and thank you very much again.
Bye. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.