KUALA LUMPUR: Lotus aims to make inroads into China through a joint venture that would hasten the development of its cars there, leveraging on the incentives offered by the Fujian provincial government.
Lotus parent Proton recently signed the agreement with Lotus Group International Limited and Chinese company Goldstar Heavy Industrial Co. Ltd.
Proton CEO Datuk Abdul Harith Abdullah said the agreement would see the formation of a new joint venture company that would undertake research and development (R&D) activities in the use of efficient and advanced technology.
"The joint venture company will then produce and sell Lotus branded passenger cars as well as provide after sales services in China."
China has become the most promising export market for Lotus cars. Lotus announced earlier this month a 55% increase in car sales to 2,008 units for its 2014/15 financial year, compared to the previous year, with 36 new dealers appointed during the period.
Lotus said it was the best result it had achieved since 2008/09. Key global markets were China (+186%), France (+177%) and Germany (+130%), while Japan (+103%) remains the company’s largest export market.
Lotus will continue to produce its sports cars its headquarters in Hethel, England. It makes the Evora, Exige and Elise.
Proton has worked with Goldstar before in 2002 but the deal to produce Proton cars in China fell through, resulting in a suit by the Chinese partner against Proton for breach of contract. The dispute was finally settled through arbitration.
