Luxury car maker Lotus taken over by Chinese group

Chinese manufacturer Geely's is set to take over British sports car brand Lotus, following the firm's struggles with profitability in recent years.

Geely's, which also makes the iconic London taxi cab, will take a majority stake in Lotus as part of a larger effort to acquire Lotus’ Malaysian parent group Proton.

Lotus will be the latest brand to be taken on by the Chinese carmaking group, which also successfully took over Swedish brand Volvo seven years ago.

The British luxury vehicle firm has recorded losses for the last few years, although in 2016 they were reduced to £27m annually.

The Zhejiang Geely Holding Group has been growing steadily in recent years with a raft of acquisitions in several different regions across the globe. Lotus would represent the company’s most prestigious purchase to date.

Geely bought the London Taxi Company out of administration in 2013 for £11m when it was called Manganese Bronze, having collapsed the previous year after a steering fault in one model saw the company hit the skids.