Nio has finally launched the much-anticipated Firefly brand in China, which will be targeting the most affordable corner of the EV market. Its first model is a small electric hatchback with swappable batteries, aimed at global markets including Europe, Latin America, and Southeast Asia.

Firefly EVs will be positioned below the Nio and Onvo in terms of size, features, and pricing. The goal of the brand is to make “small, electric high-end cars accessible to a broader audience”.

More: Is BYD Making A Cutprice Electric Porsche 911 Rival? (New Photos)

The urban hatchback is simply known as the Firefly. Responsible for its design is ex-BMW and Ford designer Kris Tomasson. The exterior has a few references to the discontinued Honda e, with a similar greenhouse, a black-finished roof, and matching pillars. The signature trait of the Firefly is the three-piece circular LED headlights and taillights that look like iPhone cameras.

Other highlights include the flush door handles, the six-spoke wheels, and the clean surfacing. According to Firefly, the plastic cladding on the lower part of the bodywork is made from a sustainable material. The company didn’t reveal the dimensions of the EV, which looks like a rival to the likes of the BYD Dolphin, Citroen e-C3, Fiat Grande Panda, and Renault 5.

The latest Chinese EV features a 92-liter (3.2 cubic feet) frunk with layered storage and a drainage function, which is larger than what you get in most EVs. This is combined with a boot that can reach up to 1,250 lt (44 cubic feet) when the rear seats are folded flat. There are no photos of the interior, but earlier spy shots revealed a minimalist dashboard with a Tesla-style infotainment touchscreen and a digital instrument cluster.

Firefly claims that the turning circle of 9.4 m (30.8 feet) and the “multi-scene automatic parking assist function” will make it easy to navigate the EV in tight urban areas.

The EV has been engineered to score five-star ratings on the C-NCAP and Euro-NCAP tests. This was made possible thanks to the extensive use of high-strength steel and aluminum comprising 83.4% of the body structure, double anti-collision beams in the front doors, and nine airbags as standard, and claims to offer the best torsional stiffness in its segment (35,700 Nm).

Details about the electric motors and battery pack have yet to be announced. However, we know that the latter will be swappable, although not compatible with the existing battery swapping stations of Nio and Onvo due to its smaller size.

The Firefly is already available to pre-order in China for ¥148,800 ($20,400), ahead of its official market launch in April 2025. The model will reportedly roll out in Europe in the first half of 2025, where it is expected to be more expensive. As reported by Car News China, Nio wants the products of the Firefly brand to be available in 25 countries by the end of 2025.

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Starting in the new year, the European Union will drastically tighten its regulations on automotive carbon dioxide emissions. From January 1, 2025, the EU will enforce a much stricter cap, requiring the average CO2 emissions per kilometer for each new car sold by a manufacturer to not exceed 93.6 grams. This represents a 19% reduction from the current year’s target.

According to consultancy firm Dataforce, under the new emissions measurement system, the 2024 target would equate to 116 g/km using the previous system of calculation.

Read: Europe Is About To Find Out If EV Sales Can Survive As More Governments Slash Subsidies

While the regulation doesn’t prescribe specific methods to achieve this reduction, it effectively forces major car manufacturers to ensure that at least 20% of their sales come from zero-emission electric vehicles. This marks a significant increase from the current average of 13% of all cars sold in the region, according to data from the industry association ACEA. As Reuters reports, manufacturers that fail to meet these targets will face hefty fines.

Automakers Shift Pricing Strategy

In response, automakers have started increasing the prices of their gasoline and diesel vehicles to reduce demand for internal combustion engine models and make EVs more appealing.

“Carmakers have started with their pricing strategy to steer demand towards battery EVs in order to reach the CO2 targets and avoid potential fines,” Beatrix Keim of the Center for Automotive Research told Reuters.

Companies such as Stellantis, VW, and Renault have already increased the prices of ICE models by hundreds of euros in recent months. For instance, all Peugeot models sold in France—except EVs—saw price hikes of up to €500 ($525) last month. According to S&P Global auto analyst Denis Schemoul, these adjustments could also help fund future discounts for EVs.

Affordable EVs On the Horizon

Over the next year, Europe will see the launch of several new and more affordable EV models. These include the Hyundai Inster, Fiat Grande Panda, BYD Seagull, Cupra Raval, Renault R5, Skoda Epiq, and VW ID.2. Other EVs priced below €25,000 (about $26,200 at current exchange rates) are also in development, such as the Renault Twingo, Kia EV2, and VW ID.1.

Mounting Criticism From Automakers

Not everyone is on board with the EU’s tightening regulations. At the Paris Auto Show in October, Luc Chatel, president of the French car lobby PFA, slammed Brussels for what he described as unrealistic emissions targets.

“At some point, enough is enough,” Chatel said. “I can’t sell enough electric vehicles and I’m going to be penalized on my thermal vehicles. What do they want me to make, horse-drawn carriages?”

This year, just 13% of all vehicles sold across the EU have been electric, and many politicians are pushing the region to relax its targets for 2025. If the sector fails to meet its CO2 obligations, fines could soar as high as €15 billion ($15.7 billion). Some automakers have found alternative strategies to avoid fines, such as pooling emissions with other brands. For example, Suzuki will pool emissions with Volvo in 2025, eliminating the risk of penalties.

Despite these efforts, skepticism remains. A source close to one of Europe’s major automakers told Reuters that simply raising ICE prices may not be enough to drive sufficient EV sales, citing weak growth in the EV segment. As the market faces both political and economic pressures, 2025 could be a turning point for the region’s auto industry.

While automakers navigate shifting electrification strategies, the global electric vehicle market continues to grow steadily. November 2024 set yet another sales record, with 1.8 million EVs sold worldwide, bringing the year-to-date total to an impressive 15.2 million units.

More: China’s Growing Love For EVs Has Oil Companies Freaking Out

According to market research firm Rho Motion, November marked the third consecutive month of record-breaking EV sales, with an additional 100,000 units sold compared to October’s previous high. This represents a sharp 32 percent leap from November 2023.

China Leads the Charge

Unsurprisingly, China continues to dominate the EV stage by a huge margin with an astonishing 1.3 million units sold in November, accounting for nearly 70 percent of global sales. Much of this growth came from rising demand for models produced by Geely, Tesla, and Changan, bolstered by China’s aggressive push toward electrification.

Between January and November 2024, China’s EV sales soared by 40 percent year-over-year, reaching a remarkable 9.7 million units and dwarfing sales in all other regions.

The global tally of 15.2 million EVs sold between January and November 2024 represents a 25 percent increase compared to the same period last year. Breaking this down, China was followed by the European Union, EFTA (Iceland, Liechtenstein, Norway, and Switzerland) and the UK at 2.7 million (-3%), the US and Canada at 1.6 million (+10%), and the rest of the world contributing 1.1 million (+25%).

Regional Gains and Setbacks

In Europe, major markets like Germany, France, and Italy are experiencing a slowdown, with year-to-date sales shrinking by 3 percent. However, the UK stands out as an exception, posting a 17 percent increase in sales thanks to stronger demand in the second half of 2024. Still, uncertainty looms as the UK government considers scaling back its EV mandate, citing feasibility concerns.

Across the Atlantic, the US and Canada have maintained a steady 10 percent increase in EV sales year-to-date, totaling 1.6 million units sold so far. Donald Trump’s recent election victory is expected to trigger a year-end rush for zero-emission vehicles, as buyers hurry to claim Biden-era tax credits before they risk being cut next year.

Charles Lester, Data Manager at Rho Motion, commented: “This quarter has picked up significantly for EV sales globally as we see record-breaking month after record-breaking month. However, the regional picture is somewhat uneven with Europe shrinking 3% this year so far, and once more China accounts for over two-thirds of the electric vehicles sold in November.”

In a significant legal ruling, a Norwegian court has ordered Tesla to pay a former employee more than €10,000 (equal to $10,500 at current exchange rates) in damages and cover upwards of €170,000 ($178,000) in legal fees after finding the company had violated his rights as a whistleblower.

The case stems from the actions of Lukasz Krupski, a former service technician at Tesla’s plant in Drammen, Norway. Krupski had provided more than 100 gigabytes of data to German publication Handelsblatt, revealing security flaws and a series of data protection problems. It included information related to problems with the Autopilot system and Tesla’s struggles to bring the Cybertruck to the market.

His leak also revealed that private information about Tesla customers and employees was publicly available, as were contracts with business partners, design plans, and confidential presentations.

Read: Fired Tesla Technician Turns From Company Hero To Enemy Number 1

Six days after the data was made public, Tesla’s reaction was swift and aggressive. At the company’s behest, Norwegian authorities raided Krupski’s apartment, seizing his computer, phone, and storage devices. Tesla quickly branded him a “disgruntled former employee.” In retaliation, Krupski filed a lawsuit against Tesla, seeking compensation for lost wages, emotional distress, and the unlawful treatment he endured.

Court Rules in Favor of the Whistleblower

Earlier this week, the Norwegian District Court of Buskerud ruled in favor of the whistleblower, the Handelsblatt reports, confirming that he is entitled to compensation, although he won’t get the full €250,000 (~$262,000) that he had been seeking.

“A Victory for Transparency”

Despite the partial financial settlement, Krupski viewed the court’s ruling as a personal victory. “Tesla made my life hell after I raised concerns about serious safety issues within the company,” he said. “I tried to act in good faith, but instead I was faced with retaliation, demotion and isolation. Even if I didn’t get everything I had hoped for, this decision is an important victory for transparency. Now I want to concentrate on looking forward and rebuilding my life.”

Before becoming Tesla’s enemy number one, Krupski had been recognized by none other than Elon Musk. In March 2019, while helping deliver new vehicles to customers in Norway, Krupski saved the day by disconnecting a modified charger from under a Model 3 that had caught fire, preventing a potentially devastating blaze.

Musk emailed him directly saying “Congratulations for saving the day,” but when Krupski replied back expressing safety concerns, he started to draw the ire of his superiors, who claimed he no longer had a future at the automaker. He was fired in 2022 over accusations of poor time management and of being a bad influence on other staff, but also for taking photographs on-site, which is against company policy.

Toyota’s latest entry into the ever-growing electric SUV game, the Urban Cruiser, has just been unveiled. And let’s be honest, if you think it looks familiar, you’re right. It’s basically a Suzuki e-Vitara in disguise, just with a Toyota badge and some slightly sharper edges. The Urban Cruiser is available in both FWD and AWD, offering what Toyota claims is a “spacious” cabin, for its size, at least.

Sizing Up the Urban Cruiser’s Footprint

Measuring 4,285 mm (168.7 inches) long, the Urban Cruiser slots in between the Yaris Cross and the C-HR in Toyota’s crowded European SUV lineup. Its exterior is heavily influenced by last year’s Urban SUV Concept, with just enough toned-down features to make it acceptable for production—basically, Toyota’s way of saying, “We liked that design, but we needed it to be less ‘concept car’ and more ‘can sell in 2025.’”

More: Toyota’s bZ3X Is A Sub-$14k Electric SUV That Americans Can’t Have

Now, if you’re wondering what makes it distinctly Toyota, it’s the face. Hammerhead headlights and unique tail light graphics set it apart from its Suzuki twin, but that’s pretty much where the differences end. Oh, and the wheels, they’re identical to the e-Vitara’s, so don’t bother squinting too hard when you spot one on the road.

Interior

The same goes for the interior, which features a bulky digital cockpit with a 10.25-inch instrument cluster and a 10.1-inch infotainment screen. The floating center console is decked out in glossy black inserts, paired with dark-themed upholstery. Options include a JBL premium audio system and a fixed sunroof, while all trims come standard with an array of ADAS.

Despite the small footprint of the Urban Cruiser, Toyota claims that the interior can be as spacious as a midsize SUV offering. This is made possible by the EV underpinnings and the generous wheelbase of 2,700 mm (106.3 inches), which is 140 mm (5.5 inches) longer compared to the Yaris Cross. Furthermore, the rear bench seats have sliding and reclining functions for added practicality.

Powertrain Options

As with its Suzuki twin, the Toyota Urban Cruiser rides on an EV-dedicated architecture and will be available with three power outputs and two lithium-iron phosphate battery options. The FWD models deliver 142 hp (106 kW / 144 PS) or 172 hp (128 kW / 174 PS) from a single electric motor, while the AWD version is good for 182 hp (135 kW / 184 PS) from a dual-motor setup. The smaller 49 kWh battery is exclusively available with FWD, while the 61 kWh unit can be had with both FWD and AWD.

WLTP range figures haven’t been disclosed yet, but the Urban Cruiser does feature an energy-saving heat pump for the A/C and a manually activated battery pre-heating function—ideal for colder climates.

Market Debut

The Toyota Urban Cruiser will make its first public outing at the 2025 Brussels Motor Show in January. Pricing will be announced closer to market launch in Europe sometime next year.

Toyota states that it is committed to achieving zero CO2 emissions in Europe by 2035 and full carbon neutrality by 2040. The automaker aims to have 15 zero-emission vehicles in its lineup by 2026, including six BEVs on a dedicated platform.

BYD’s ongoing global expansion continues, and next year, it will start building the popular Dolphin and Atto 3 EVs in Europe. European carmakers are already petrified of the surging Chinese giant and will soon have to deal with BYD building vehicles in their back yard.

The company is constructing a large production facility in Hungary and according to its European boss, Stella Li, it’ll be ready to ramp up production towards the end of 2025. According to Li, BYD’s initial plans called for the tiny Seagull to be the first model built in Europe, but priorities have shifted, likely because the Dolphin and Atto 3 should sell in higher numbers than the Seagull.

Read: 2026 BYD Dolphin EV Breaks Cover With A Prettier Face And A New Powertrain Option

Speaking with German business magazine Capital, Li noted the ramp-up at the Hungarian plant will take two to three years, and that a third model is next for production on European soil, slotting between the Dolphin and Atto 3. This new model, referred to as the ‘Atto 2’ by Li, is expected to be a rebranded version of the Yuan Up that was shown earlier this year and is already available in China. It’s noticeably smaller than the Atto 3 and has a more rugged and upright design, a bit like the Mercedes-Benz GLB, but smaller. The Seagull will also become the fourth model built at the Hungary plant.

Securing its place in the European market won’t be easy for BYD. The growth in EV sales has slowed across the region throughout much of 2024. In response, BYD is expected to start offering more of its plug-in hybrids in Europe.

In October, Stella Li announced that BYD would build the majority of the EVs it sells locally in Europe following the enforcement of import tariffs on Chinese-made electric vehicles. BYD is working to establish a new supply chain in Europe, will assemble battery packs in Hungary and Turkey, and will only need to import battery cells from its home country.

Electric vehicles may be gaining popularity worldwide, but the path to mass adoption remains challenging. In Europe, where EV incentives have historically fueled sales, several countries are planning to scale back or overhaul their subsidy programs in 2025, a shift that could hinder growth in one of the key markets for electrification.

France is leading the charge with some of the most significant changes. As part of its 2025 national budget, the government is slashing its EV subsidy program’s budget from €1.5 billion to €1 billion. Currently, French buyers can receive between €4,000 (around $4,200 at current exchange rates) and €7,000 ($7,300) in subsidies for EVs priced under €47,500 ($49,900). In 2025, those subsidies will be cut nearly in half, dropping to between €2,000 ($2,100) and €4,000 (~$4,200).

Leasing Scheme Changes Hit Low-Income Families

The country is also dialing back its innovative EV leasing program. This scheme, which allows low-income households to lease a small EV for €100 ($105) per month or a larger family electric car for €150 ($157) per month, proved so popular that it had to be paused just two months after launching due to overwhelming demand. In 2024, the program received €650 million ($682 million) in funding, but next year, the budget will be slashed to €300 million ($315 million), according to Rho Motion.

Read: EV Sales Drop 10.8% In EU As Buyers Flock To Hybrids

Meanwhile, Spain is making changes to its EV incentive scheme, which has had a €1.55 billion ($1.62 billion) budget. Buyers currently receive up to €7,000 ($7,300) for electric cars, €9,000 ($9,400) for commercial EVs, and additional subsidies for motorcycles and scooters. Starting next year, Spain will introduce direct payments for these incentives, meaning customers will no longer face delays of up to two years to access their subsidies. While this change will streamline the process, details on the program’s overall budget and scope remain under wraps.

Subsidy Cuts Already Hitting Germany Hard

The ripple effects of cutting EV incentives are already being felt. Germany, one of Europe’s largest EV markets, experienced a steep decline in sales after its government slashed subsidies in December 2023. EV sales in the country plummeted 69% in August compared to the previous year, following drops of 37% in July and 16% in June.

The same report from Rho Motion notes that battery electric vehicles (BEVs) are still, on average, 75% more expensive than their internal combustion engine (ICE) counterparts. Subsidies and tax incentives remain critical tools for driving EV adoption and making them accessible to more consumers.

As Europe scales back financial support for EVs, the industry may face an uphill battle to maintain its current momentum.

New spy shots have surfaced online of the new EV from Firefly, the entry-level brand from Chinese automaker Nio. The car is tipped to be showcased to the world on December 21 at the annual Nio Day in Guangzhou.

While Nio itself is only a relatively young EV startup, it’s following the lead of other Chinese automakers in launching separate brands dedicated to building cheaper and more accessible cars. Firefly will slot below the recently introduced Onvo brand from Nio and focus on small and mid-size EVs. These photos confirm its first model will be a compact hatchback.

Read: Nio Drops Onvo L60 Price To Obliterate Tesla’s Model Y, Starts At $21K

We first caught a glimpse of the new car back in March, but new photos give us a better look at it. The car’s proportions are fairly typical for a hatchback of this size, and key elements like the short front and rear overhangs immediately catch the eye. Viewed from the side, it’s impossible not to notice the car’s thick C-pillars as well as the aero covers over the wheels. The dimensions resemble vehicles like the five-door Mini Cooper and BYD Dolphin.

Nio’s engineers have done a good job hiding the car’s front and rear fascias from prying eyes, even going to the trouble of affixing faux headlights and taillights to the black body cladding. It’s safe to assume that both the headlights and taillights will be LED units.

Photos of the Firefly’s interior have also been published by IT Home and CarNewsChina. Like plenty of other EVs out there, the Firefly sports a large central infotainment screen that looks like a huge tablet has been stuck to the dash. Despite the car’s budget positioning, Nio has also managed to add a digital instrument cluster, which is a nice touch (take note, Tesla). A simple two-spoke steering wheel and a flat floor are also visible.

Technical specifications about the car remain unclear, but it will reportedly support battery swapping through dedicated Firefly swap stations. It’ll initially launch in China but should also be sold in Europe, although recent tariff hikes will likely make it more expensive than originally planned. China prices could start between ¥100,000-200,000 (~$13,700 – $27,400), while European prices should kick off from under €30,000 (~$31,500).

In the past, if foreign automakers wanted to do business in China, they were effectively forced into a joint venture with a local manufacturer. While this policy has changed over the years, it appears the European Union might try enforcing something similar.

According to the Financial Times, EU officials are planning to introduce new rules that would require Chinese firms to transfer intellectual property to European businesses in exchange for subsidies. This will reportedly go into effect in December and apply to €1 billion ($1.05 billion) worth of battery development incentives.

More: Chinese Battery Maker Scraps Plans For Two German Factories As EV Demand Weakens

The publication went on to quote two senior officials as saying the scheme could be rolled out to other subsidy programs. However, the exact details aren’t set in stone and may change.

While the plan sounds pretty straightforward, it appears to have aspects of a poison pill strategy. In particular, it could make Chinese firms hesitant to go after incentives as it would require them to share technology with European rivals. This could end up helping European companies as there may be less competition for funding.

It’s not clear if that’s what officials have in mind, but the EU has to walk a fine line as the Financial Times noted CATL and Envision Energy have invested heavily in European facilities. It also goes without saying that China would likely be angered by the move and this could cause them to retaliate.

This wouldn’t be the first time China has fought back as they slapped a hefty tariff on European brandy in an apparent response to Europe’s targeting of Chinese EVs. At the time, China’s Ministry of Commerce suggested they could also target pork and dairy imports as well as “large-displacement fuel vehicles” such as luxury sedans and sports cars.

The automotive industry’s transition to electric vehicles continues to expose the growing pains of even the biggest players. On Wednesday, Ford announced plans to cut 4,000 jobs across Europe by the end of 2027, citing financial challenges tied to the EV shift and rising competition. The automaker is also scaling back operations at its Cologne plant in Germany, attributing the move to sluggish demand for its EVs.

Ford pointed to “unprecedented competitive, regulatory, and economic headwinds” as the driving forces behind the cuts, emphasizing that its European passenger vehicle business has endured “significant losses” in recent years.

The Job Cuts Amount to 2.3% of Ford’s Global Workforce

The planned reductions represent nearly 14% of Ford’s European workforce or 2.3% of its global personnel. Unsurprisingly, Germany and the UK will bear the brunt of these layoffs, with only “minimal reductions” expected across other European markets. The cuts are set to unfold over the next three years, with Ford pledging to consult with social partners throughout the process.

More: Ford Ranger EV Promises To Be An “Exciting” Gamechanger

Adding to the grim outlook, Ford announced more short-time working days at its Cologne facility for the first quarter of 2025. The company cited “lower-than-expected” EV demand as the reason, exacerbating concerns over the viability of its current strategy.

The facility is home to production for the fully electric Ford Explorer and Capri, which share their underpinnings with the VW ID.4 and ID.5. This measure is a follow-up to the recent adjustment on the EVs production schedule, with employees already working alternate weeks until the end of the year.

Emission Targets and Consumer Disconnect

Dave Johnston, Ford’s European vice president for Transformation and Partnerships, defended the job cuts as a painful but necessary step: “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.” Yet the broader picture reveals frustration with the regulatory environment.

As with most automakers, Ford is not happy with the strict emission regulations in Europe, saying there is a “misalignment” between CO2 targets and consumer demand for electrified vehicles.

Ford Calls for Policy Overhaul

This disconnect has prompted Ford to escalate its lobbying efforts. In a recent letter to the German government, CFO John Lawler urged policymakers to improve market conditions for EVs. The letter outlined key asks, including “public investments in charging infrastructure, meaningful incentives, improved cost competitiveness, and greater flexibility in meeting CO2 compliance targets.”

While Ford is clearly seeking ways to navigate the EV transition, its European troubles underline a larger industry-wide challenge: balancing regulatory pressure with market realities. For now, the road ahead for Ford, and others, remains bumpy.

In a quick riposte to the European Union’s freshly imposed tariffs on Chinese-made electric vehicles, the People’s Republic has escalated the dispute by filing a formal complaint with the World Trade Organization (WTO), urging Brussels to reconsider. Beijing’s latest move, thinly veiled in diplomatic language, signals it’s not about to sit quietly as the EU cranks up the pressure on Chinese EVs competing in the European market.

The lawsuit accuses the EU of lacking any “factual and legal foundation” for the tariff hikes, claiming they violate WTO rules and amount to “an abuse of trade remedy measures.” China’s Ministry of Commerce adds it filed the lawsuit “in order to safeguard the development interests of the electric vehicle industry and global green transformation cooperation.”

Read: China Tells EV Makers To Stop Investing In EU Countries That Approved Tariffs

China has requested consultations with the EU, initiating a 60-day window to hammer out an agreement before the WTO could step in with a dispute panel.

In a statement issued to Bloomberg, a spokesperson from the ministry said China is urging “the EU to face its mistakes and immediately correct its illegal practices, and to jointly maintain the stability of the global electric vehicle supply chain and China-EU economic and trade cooperation.”

In the months since the tariffs were formally announced, officials from China and the EU have held talks to try and negotiate a resolution that works for both. However, no agreement could be reached before the tariffs were introduced at the end of October. SAIC has been hit with the largest tariff increase of all, 35.3%, while Geely has been hit with an 18.8% tariff hike, and BYD must now pay an additional 17% tariff. These hikes come on top of the existing 10% tariff.

Marcos Sefcovic, the EU’s incoming trade chief, is reportedly on the ground in China this week, suggesting that Brussels hasn’t entirely abandoned hope of reaching a deal.

Meanwhile, the Chinese Commerce Minister, Wang Wentao, recently met with officials from France and urged them to push the EU towards a resolution, Reuters reports.

Last week, it was revealed that the Chinese Ministry of Commerce had told local car manufacturers to pause investment plans in countries that voted in favor of the tariffs while encouraging investments only in countries that voted against them. These include Germany, one of five members that opposed the new tariffs.

If you assumed Kia’s subcompact EV3 would be its smallest foray into the electric SUV segment, think again. These spy shots reveal that the Korean automaker is cooking up an even smaller EV, the Kia EV2, set for a 2026 release. This sub-compact contender is designed with the European market in mind, where space—and price—are at a premium.

Though Kia has teased details about its forthcoming model lineup, this is our first glimpse of the EV2 in the metal. The heavily camouflaged prototype could be easily mistaken for a Kia EV3 if it wasn’t for the redesigned greenhouse and the slightly smaller footprint.

More: Kia Wants A Picanto-Sized EV And Electric Stinger Successor

The EV2 manages to pull off a mini-SUV stance, thanks to its upright nose, near-vertical windshield, and boxy silhouette, capped off with roof rails that give it a touch of ruggedness. Familiar styling cues, like the vertically stacked LED headlights and blacked-out pillars, link it to the larger EV siblings—the EV3, EV5, and EV9. Interestingly, the taillights sit lower than you’d expect, though these might just be placeholder units. The prototype also rolls on smart-looking alloy wheels with a machined finish.

Inside, the modern headrests on the seats are similar to the EV3, while we can see what appears to be a digital instrument cluster. While the rest of the dashboard remains covered, a separate infotainment display seems to protrude from the center—a shift from Kia’s usual single-panel screen setup.

The Kia EV2 is expected to measure around 4,000 mm (157.5 inches) in length. That makes it longer than its Hyundai sibling, the Inster, which measures 3,825 mm (150.6 inches) and competes in the A-SUV category. However, it’s still shorter than the MINI Aceman at 4,079 mm (160.6 inches) and the Jeep Avenger at 4,084 mm (160.8 inches), both on the smaller end of the B-SUV segment. For reference, the Kia EV3 is significantly larger at 4,300 mm (169.3 inches), putting it at the upper end of the same category.

Underpinning the EV2 could be a shorter version of Kia’s E-GMP platform. Chances are that the model will be available with a single electric motor and a smaller battery pack, as it is aimed squarely at budget-conscious buyers who want electric without breaking the bank.

Kia’s CEO, Song Hu-sung, has indicated that the EV2 will aim for a price between €25,000 and €30,000 (around $27,000 to $33,000 at current exchange rates). Production is scheduled to begin in Slovakia, with the car expected in showrooms by 2026.

And the EV2 might not be the last of Kia’s mini EVs. The Korean brand is already contemplating an even tinier and cheaper EV1, which could eventually replace the Picanto as Kia’s smallest offering in Europe.

SH Proshots

If you wanted to start work at 18 with confidence that you could put in 45 or 50 years before sailing off to a happy, comfortable retirement, a job in the German auto industry always seemed like a solid bet. People are always going to want Golfs, right? But a new study says that thinking is outdated and reckons hundreds of thousands of workers could be left unemployed in as little as a decade, with EVs shouldering much of the blame.

In the same week VW asked workers to take a 10 percent pay cut to save their own jobs, an investigation by Prognos suggests it might only be delaying the inevitable. The report predicts the switch to electrification would reduce the number of workers in the German auto sector by 186,000 in 2035 compared with 2019 levels.

Related: VW Wants To Eliminate Bonuses And Cut Wages By 10%

The headcount reduction is mostly, but not exclusively, the result of the ‘drive systems’ of electric cars requiring fewer components than their combustion predecessors, meaning that both automaker employees and those working in the supplier industry risk losing their positions.

Jobs related to welding and metal processing, as well as business management and administration, will become more scarce, the report claims, but automakers will need to recruit more people working in IT, in electrical engineering and also (perhaps surprisingly) in mechanical engineering. Overall, though, more jobs will be lost than created, so while workers at risk would be wise to retrain, there still won’t be enough roles in 2035 for everyone currently employed in the auto industry.

The Prognos report says that the transition in the makeup of jobs at German automakers has been going on for the past few years, but will pick up steam over the next 10. And nowhere is evidence of the shift clearer than at VW, which this week asked its employees to take a pay cut and could be about to close three factories having never previously shut a plant in the company’s entire history. In fact, only a few days ago it was reported that Audi will shut down its Brussels plant, where the Q8 e-tron is manufactured, in February 2025.

VW chiefs claim that radical steps must be taken to help the company navigate its way through some tough times. And workers must be prepared to make some sacrifices in the short term if they’re to have any hope of safeguarding jobs in the long term.

“We urgently need a reduction in labor costs in order to maintain our competitiveness. This requires a contribution from the workforce,” Arne Meiswinkel, the VW brand’s personnel boss said, according to Reuters.

The automaker is struggling with a perfect storm of rising costs, a slower than expected uptake for its EVs in Europe and the US, and declining market share in China.

European tariffs on Chinese-made electric vehicles took effect on Wednesday, after both sides failed to hammer out a resolution. The new policy slaps import taxes as steep as 45.3% on certain Chinese electric vehicles, a confrontational step that will likely reverberate across the industry.

These tariff hikes have been a long time in the making and came after an exhaustive investigation from the European Commission. Rates vary between companies depending on how cooperative they were with EU authorities. For example, SAIC, the parent company of MG, faces the steepest increase at 35.3%, in addition to the existing 10%. BYD, meanwhile, is absorbing an additional 17% tariff, and Geely’s rates have jumped by 18.8%.

Read: BYD Will Fight EU Tariffs By Producing Most EVs In Europe

Just as the new tariffs were enforced, Reuters reports that the Chinese Ministry of Commerce has told local car manufacturers they should pause investment plans in countries that voted in favor of the tariffs.

Unnamed sources say carmakers have been “encouraged” to invest only in countries that voted against the tariffs while remaining prudent about planned investments in countries who abstained from voting. Ten members of the European Union, including France, Poland, and Italy, threw their support behind the import taxes. A further 12 abstained from voting, while five members opposed them. These included Germany, the world’s third-largest economy, and an automotive juggernaut.

The insistence from the Ministry of Commerce to pause investments in countries that approved the hefty taxes could be bad news for Italy and France. Both countries have been feverishly courting Chinese car brands in recent months but voted to approve the tariff hikes. SAIC plans to open a parts center in France before the end of the year, and Italy has spoken with several companies looking to attract investment, including Chery and Dongfeng Motor.

Meanwhile, BYD appears to have played its cards just right. Long before the tariffs were even a rumor, the company committed to building a factory in Hungary, and as fate would have it, Hungary voted against the import taxes. BYD is also rumored to be weighing a shift of its European headquarters from the Netherlands to Hungary—a move that now looks not only shrewd but perhaps prophetic.

Chinese EV battery maker SVOLT has announced it will shutter its European operations in January and abandon plans for two production facilities, blaming slumping sales across Europe and rising trade tensions for the abrupt pullout.

Originally spun off from Great Wall Motors’ battery division, SVOLT now aims to refocus its European presence around technical services, warehousing, engineering support, logistics, and maintenance. In other words, it’s downsizing from ambitious manufacturing to just enough infrastructure to maintain a foothold in the region, but the shift signals a major retreat from its initial production-heavy aspirations.

Read: BMW Cancels €2 Billion Battery Deal With Northvolt Due To Delays

The move kills off two planned plants in Germany—a module and pack assembly facility in Saarland and a cell manufacturing plant in Brandenburg. The pack plant was first announced in late 2020 and included a €2 billion ($2.16 billion) investment. It was supposed to manufacture up to 24 GHw of packs each year and begin operations by mid-2024 but had been delayed. The battery cell plant was announced in 2022 and would have been SVOLT’s first overseas cell factory. It had planned to begin production in 2025.

Despite being China’s eighth-largest battery producer with a 2.36% share of the local market, SVOLT has been struggling to gain traction both at home and abroad. Financial constraints seem to be the root of the problem. It had planned to go public on the Shanghai Stock Exchange STAR Market in late 2022 but these plans were officially scrapped in December last year.

Currently, SVOLT is known to supply battery packs Citroen e-C3, and while limited other details about supply contracts in Europe are known, Rho Motion suggests that it may have had a contract with BMW to supply batteries.

Other battery manufacturers are struggling to establish themselves in Europe. In September, Volvo’s joint venture alongside Northvolt asked the Swedish government for $1.2 billion in funding to help it complete construction of its plant in Gothenburg. This plea came just months after BMW canceled a €2 billion order for battery cells from the Swedish firm.

Audi will close its production facility in Brussels, Belgium, in February next year, but there remains a glimmer of hope it could be saved with new investment.

The Forest plant has been under threat for several months and will be the first factory closed by the VW Group in Europe. It handles production of the Q8 e-tron and employs roughly 3,000 staff, but will close its doors on February 28. The VW Group has previously confirmed there’s been a slowdown in demand for the Q8 e-tron models built in Brussels and that it has no plans of building any other vehicles at the site.

Read: Audi Wants To Kill The Q8 E-Tron, May Shut Brussels Plant

The decision was made during a works council meeting with unions earlier in the week. Production of the Q8 e-tron will continue right up until the closure, and workers will be required to return from Christmas holidays to complete two final months of work over two shifts.

Audi has been looking for ways to make the plant viable. It has spoken with 26 potential investors who’ve shown interest in the plant, but according to the carmaker, none of them have presented a sustainable business plan.

Speaking with The Brussel Times about attempts to save the plant, Audi Brussels spokesperson Peter D’hoore said that no viable alternative had been found to keep the site alive.

“More than twenty alternative business models were analyzed as part of the information and consultation process, for example in the areas of electromobility and battery technology, but also lifecycle sustainability and new business models along the value chain,” D’hoore confirmed. He added that as of Tuesday this week, Audi had been in talks with a new investor.

This new investor is from the commercial vehicle sector, although details about negotiations with Audi are being kept under lock and key. As it stands, management at the plant will finalize information and the consultation process with workers at a works council meeting scheduled for November 12.

Mitsubishi will soon expand its European lineup with two new compact SUVs, set to be locally manufactured by Groupe Renault. One will be an EV and the other an ICE/HEV model, and both will launch in 2025.

The company published a single teaser, with the two SUVs under a veil, next to Mitsubishi’s existing European lineup. The model on the left is most likely the Mitsubishi equivalent of the Renault Symbioz, which is heavily based on the Mitsubishi ASX and Renault Captur subcompact SUV twins. This is evident from the identical lighting signature and the slightly longer body.

More: Mitsubishi DST Concept Previews 7-Seater SUV With Boxy Looks For Asia

Mitsubishi’s new SUV will be available with gasoline, and self-charging hybrid powertrain options. Just like the Renault Symbioz, it will ride on the CMF-B architecture and is expected to measure 4,413 mm (173.7 inches) long.

The other upcoming SUV was originally announced in December 2023 as the first fully electric Mitsubishi following the i-MiEV from 2010. This one will be based on the Renault Scenic E-Tech, which shares the CMF-EV architecture with the Megane E-Tech, the Nissan Ariya, and the Alpine A390.

The Renault Symbioz and Renault Scenic E-Tech (left) compared to their Mitsubishi equivalents (right).

The Mitsubishi brother of the Renault Scenic E-Tech will feature a slightly tweaked exterior design, with unique LED graphics up front. Options will likely include 60 kWh and 87 kWh battery packs, alongside single-motor 168 hp (125 kW / 170 PS) and dual-motor 215 hp (160 kW / 218 PS) powertrains.

The automaker revealed that its upcoming compact SUVs will be equipped with plenty of ADAS. They will also feature a Google built-in infotainment, likely mirroring Renault’s OpenR system.

As hinted at by the official teaser, the new Mitsubishi models will sit above the subcompact Clio-based Colt and Captur-based ASX, and below the Outlander PHEV. The latter was recently introduced in Europe with a more efficient plug-in hybrid powertrain and a bigger battery, allowing a combined range of 844 km (524 miles).

Shipments of Chinese-made electric vehicles into Europe reached near record highs in September, just as the European Union prepares to slap imported EVs from China with hefty new tariffs.

Local customs data reveals that Chinese car manufacturers shipped 60,517 EVs to the European trade bloc last month, which consists of 27 countries across the continent. This represented a 61% increase from the year prior and was the second-highest level on record, only behind October 2023.

Read: Why Europe’s Automakers Are Against EU Tariffs On Chinese EVs

The rush to export EVs to Europe comes just weeks before hefty new tariffs are expected to be enacted by the end of this month, Auto News notes. On October 4, members of the European Union voted in favor of enforcing the new tariffs, despite five member countries voting against the tariff hikes. Tariffs would have been overturned if a qualified majority – 15 EU members representing 65% of the bloc’s population – had voted against them. However, that did not happen.

Germany, Europe’s largest economy, voted against the tariff hikes and fears potential trade retaliation from China, which could hurt their businesses.

Officials from China and the EU continue to negotiate to see if a compromise can be reached. If a solution cannot be found in the coming days, the tariffs are tipped to go into effect at the end of the month.

Beijing is already fighting back against the tariff hikes. Officials from China have claimed the tariffs violate World Trade Organization rules and have lifted tariffs on brandy imported from the EU from 30.6% to 39%. The country may also hit pork and dairy imports from Europe with new tariffs and is contemplating raising tariffs on imported vehicles with large-displacement engines.

Stellantis is looking to cut production of some of its internal combustion-powered models to comply with 2025 EU emissions targets. This comes after chief executive Carlos Tavares recently revealed the firm opposes any delay in changes to the rules and says it will comply with them and won’t need to pay fines to do so.

Newly-appointed European chief operating officer Jean-Philippe Imparato has revealed that Stellantis must double its EV share next year to 24% of total vehicles if it wants to meet 2025 targets. The other option is to reduce production of ICE models if demand for their EVs doesn’t increase.

Read: Stellantis Selling Arizona Proving Grounds As Cost Cuts Continue

Updated EU rules come into effect on January 1 and will set an overall fleet CO2 emissions target of 95 grams per kilometer, a fall from the 106.6 g/km rule enforced since 2023. If an automaker misses the target, they will face fines of €95 per excess gram per vehicle. Imparato told Auto News that production cuts for the firm’s ICE models could start as early as November 1, confirming that his “first task is to align production for vehicles sold in the first quarter of 2025,” by the first week of November.

According to Imparato, Stellantis has several ways it can attempt to boost EV sales. For example, it will increase dealer incentives on EVs, providing rewards across the entire distribution chain, including zone managers and salespeople. The carmaking giant may also look to increase the prices of its ICE models “on a flexible basis, by model, brand, and market,” in an attempt to encourage shoppers to consider an EV.

There’s more Stellantis can do to help dealers. Many dealers have recently returned EVs from lease agreements in 2021 and 2022, and Imparato says the brand can help dealers with their residuals. Additionally, the executive says Stellantis can look to leverage the long-term value of EVs and effectively sell an electric model three times – once through an initial lease and then two more leases as a used vehicle.

Leapmotor should also help Stellantis meet emissions targets. The carmaker purchased a 51% controlling stake in the Chinese brand’s international arm, and its sales will count in the group’s overall emissions figures.

China’s unrelenting enthusiasm for electrified vehicles turned September into a record-smashing month for global sales, even as some markets wallow in the usual doom and gloom.

Worldwide deliveries of battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) surged 30.5 percent, bringing the total to 1.7 million units. A staggering 1.1 million of them were snapped up by buyers in China, where sales jumped 47.9 percent, according to Rho Motion data reported by Reuters. September was the second consecutive month in which China’s electrified sales hit seven figures.

Related: US EV Sales Soar Thanks To Generous Incentives

Sales were less spectacular in other parts of the world, but they were at least heading in the right direction – or the wrong direction if you’re a diehard combustion lover. North American sales were up 4.3 percent to 0.15 million, and in Europe they increased 4.2 percent to 0.3 million, spurred on in large part thanks to a 24 percent uplift in the UK and smaller gains in Italy and Germany.

China’s two consecutive bumper months have helped push global electrified sales for the first nine months of the year to 11.5 million, up 22 percent on the same period in 2022. Breaking those numbers down into regions reveals that China sales exploded by 35 percent to 7.2 million in January to September and the US and Canada increased its electrified take-up by 10 percent to 1.3 million.

The ‘rest of the world’ (anywhere that isn’t North America, Europe or China) moved 25 percent more units, shifting 0.9 million BEVs and PHEVs. But Europe, the next biggest region by volume for electrified cars after China, dropped 4 percent to 2.2 million.

“This record-breaking month of EV sales brings new hope to the industry,” claimed Rho Motion’s data manager, Charles Lester. “While the electrification of transport seems inevitable, the recent slowdown of sales in many parts of the world has sewn seeds of doubt which can now start to be swept aside.”

Sources: Reuters, Rho Motion