The E20's chassis was shaped by James Allison, Naoki Tokunaga, Martin Tolliday, Nick Chester, and Dirk de Beer. Several notable technical developments defined the car's design cycle.
Lotus had planned to introduce a reactive ride-height suspension system, a hydraulically controlled mechanism using brake caliper cylinders and suspension push-rods to keep ride height optimal throughout a lap. The FIA initially approved the concept, then reversed course one week later, ruling it breached Article 3.15 of the technical regulations, which requires aerodynamic devices to remain immobile relative to the car's sprung mass. The system was dropped before the season started.
During pre-season testing, Grosjean reported an unusual sensation in the chassis at Barcelona. Investigation revealed a mounting fault in the upper front wishbone on the rear suspension arm. Simulations showed the problem affected both available chassis, prompting the team to withdraw from the remainder of the Barcelona test. The fault was corrected before the season opener.
The E20 was one of the few 2012 cars to run a variant of the double-DRS system introduced by Mercedes. This concept directed air from the rear wing DRS vent through the car and across the front wing, reducing front-wing downforce to balance the car at high speeds. Lotus had initially protested the Mercedes system but, after the FIA rejected their protest, developed their own version — referred to internally as "The Device". Despite extensive development through the second half of the season, The Device was never raced on the E20. The concept was carried forward to the successor E21, where it was finally used in competition at the 2013 British Grand Prix on Räikkönen's car.
For the Korean Grand Prix, the team introduced a Coandă-effect exhaust system, which used the curvature of the rear bodywork to guide exhaust gases over the diffuser, generating additional downforce.
The E20 showed pace from early in the season, with Grosjean qualifying third in Australia, but the team's results were frequently undermined by incidents and tactical errors. By October, despite being expected as early as April to challenge for wins, the team remained without a victory.
A breakthrough came at Bahrain, where both Räikkönen and Grosjean finished on the podium behind Sebastian Vettel. Further podiums followed in Spain and Canada. At Valencia, Grosjean was running with the race leader Fernando Alonso when an alternator failure retired him — the same failure that had already taken out Vettel — leaving Räikkönen to finish second.
Grosjean's season was blighted by repeated first-lap incidents. The most severe came at the Belgian Grand Prix, where his move at the start triggered a multi-car collision involving Lewis Hamilton, Alonso, and Sergio Pérez. The stewards handed Grosjean a one-race ban, sidelining him for Monza, where he was replaced by reserve driver Jérôme d'Ambrosio.
Räikkönen remained in championship contention into the final stages of the year. His defining moment came at Abu Dhabi, where he inherited the lead after Hamilton's McLaren retired with an electrical fault and held off a late challenge from Alonso to score Lotus's first race win of the season. The team finished fourth in the Constructors' Championship with nine podiums across the year.
The E20 carried the black and gold colour scheme associated with the John Player Special Lotus cars of the 1970s and 1980s. Special liveries included an Angry Birds design at Monaco to mark the team's 500th race entry, a Dark Knight Rises promotion at the British Grand Prix, and an Angry Birds Star Wars variant at the United States Grand Prix. The team also partnered with rock band Linkin Park at Monaco to promote an iPad application.
The E20 was subsequently used for demonstration runs in various Alpine liveries, including the Renault R.S.17 colours during Robert Kubica's 2017 appearances, the Alpine A522 colours in 2022 driven by Aseel Al-Hamad and Abbi Pulling, and the Alpine A525 livery in 2025. Al-Hamad had earlier completed a celebratory lap in the car ahead of the 2018 French Grand Prix.