According to a recent Autocar report, Lotus will produce its own V8 engine for the upcoming Lotus Esprit. Lotus is also apparently working on producing its own V6 engine for the new Lotus Elan.
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The Lotus Esprit Concept we first saw at the Paris show was said to be powered by a Toyota-developed engine, like most modern-day Lotus cars such as the Elise and Exige - powered by a Toyota 1.8-litre, and the Evora - powered by the 3.5.-litre V6 also seen in many Toyota cars and SUVs. Now the company is thinking of working on its own.

The V8 originally planned for the Esprit was the brutal Yamaha-enhanced 5.0-litre engine also seen Lexus IS F sedan. Lotus has announced it might not be using the IS F V8 for the Esprit as it could potentially use a V8 engine developed in-house by the Lotus team. Lotus boss, Dany Bahar, told Autocar that the new car could use a V8 developed at its purpose-built factory in Hethel, UK. Bahar said,

"We have done three engines for other manufacturers; why not do it ourselves? The engine is the heart of a sports car; we should do our own product."

Bahar has said a definite decision won't be made until January though, but says the fans' initial reaction to the Lotus Esprit being powered by a Toyota engine might not go down too well. He said,

"In the mind of sports-car enthusiasts, Toyota power might not be good enough."

No details or specification expectations have been mentioned yet.

He also said future plans for the Lotus Elan could include a V6 engine also built in-house.