According to a new report from Bloomberg, DRB-HICOM – the parent company of the Lotus sports car brand – will form a joint venture with Chinese company Goldstar Heavy Industrial Co. for local production of Lotus cars and engines in the fast-growing Asian automobile market. The parent company said that the proposed joint venture will initially study production and sales of vehicles and parts, as per the report.
The proposed joint venture involves an investment of CN¥10 billion (US$1.6 billion) over a period of 15 years and will start production and sales of vehicles and engines within 24 months of obtaining a license. Local production in China will allow for significant growth in one of the brand’s most popular market, as production in the country helps avoiding 25% import duty. The Malaysian-owned company will raise the required funds through internal accruals and borrowings. However, production of the Evora, Exige and Elise models will still be exclusive to Lotus’ UK headquarters in Hethel, says a report from Auto Express.