Ford may be pulling back on its EV spending, but it isn’t walking away from electrification. Instead, the company may be taking a different approach, and that path could lead through China. Specifically, Ford is reportedly in early talks with BYD, the Chinese automaker that recently overtook Tesla as the world’s top EV producer, to source batteries for its next hybrid models.

According to a report from the Wall Street Journal citing sources familiar with the discussions, nothing is finalized, and a deal may not materialize. But if it does, one idea under consideration is for Ford to begin importing BYD batteries for use in its factories outside the United States.

Read: Hold Your Horses, Ford Might Be Working On A Hybrid Pony Car

In response to the report, Ford didn’t confirm or deny the potential partnership. “We talk to lots of companies about many things,” the company told the newspaper. That kind of non-denial tends to say a lot without saying much at all.

BYD, while primarily known for its battery manufacturing in China, has been expanding its footprint globally, building production capacity in Brazil, Europe, and Southeast Asia.

Why BYD Might Be the Answer

The timing of these talks aligns with a major pivot inside Ford. The company recently took a $19.5 billion write-down after scaling back several electric vehicle initiatives, including high-profile battery joint ventures with South Korean firms SK On and LG Energy Solution. Alongside a renewed emphasis on internal combustion models, Ford plans to grow its hybrid lineup, an area where BYD already excels.

The Chinese company is one of the world’s largest producers of hybrid vehicles and battery packs for cars. Instead of launching new factories or reviving shelved partnerships, Ford might simply buy batteries directly, streamlining its supply chain as it targets a goal of having hybrids, plug-in hybrids, and EVs make up half of its global sales by 2030.

Will Washington Push Back on a BYD Deal?

Any such deal is unlikely to go over well with the Trump administration. Shortly after reports surfaced that Ford was speaking with BYD, top Trump trade advisor Peter Navarro hit out at the plan.

“So Ford wants to simultaneously prop up a Chinese competitor’s supply chain and make it more vulnerable to that same supply chain extortion?,” he wrote on X. “What could go wrong here?”

Meanwhile, Donald Trump took a different tack. Speaking to reporters in Detroit, the president said he welcomed foreign firms, including those from China and Japan, setting up shop in the States, as long as they employed American workers.

“You know, those tariffs are keeping the foreign autoworkers. Now, if they want to come in and build the plant and hire you and hire your friends and your neighbors, that’s great. I love that,” said Trump. ” Let China come in. Let Japan come in. They are. And they’ll be building plants, but they’re using our labor.

The unveiling of the EV2 in Brussels marks another step in Kia’s relentless expansion into the electric market, and it could easily become one of the brand’s biggest hits. Aimed at the new Renault 4, the EV2 draws on proven tech and echoes the design language of Kia’s larger electric SUVs. There’s also the possibility of a full-bore GT version joining the range.

Read: Kia’s EV2 Is Like A Renault 4 Without The Nostalgia

Kia has so far confirmed the EV2 will be offered as standard with a compact 42.2 kWh battery pack and a 145 hp electric motor driving the front wheels. With a claimed range of 197 miles (317 km), it’ll be best suited to urban dwellers and those who can charge at home.

Soon after, a GT-Line version will arrive, featuring a larger 61 kWh battery and a potential range of up to 278 miles (448 km). Kia hasn’t yet confirmed how much power the upgraded model will offer.

Is a Hot GT Variant in the Works?

A fully-fledged GT version would sit above these models in Kia’s line-up, and could serve as a rival to the Volkswagen ID. Polo GTI, albeit in a slightly larger package than the German hatchback. When asked by Autocar about the possibility of such a version, Kia Europe’s planning chief Alex Papapetropolous didn’t rule it out.

“At launch, we’re going to have Air and Earth trims, with GT Line following in June,” he said. “Of course, we’re looking at life-cycle animations on EV2, and it’s a segment that customers are very keen and receptive to have those life-cycle updates in, so we’re looking at adding more trims in the future.”

No AWD, No Problem?

If an EV2 GT is released, it will be quite different than Kia’s other electric GT models. Kia hasn’t engineered the car to support all-wheel drive, meaning it’d have to stick to front-wheel drive. That’s not the end of the world, but it does mean it wouldn’t be able to match the EV3 GT and EV4 GT, both rated at 282 hp, and would likely land closer to the 200 hp mark.

Kia would also have to reduce torque steer as much as possible. The front-wheel drive EV5 we drove last year was riddled with torque steer with its 215 hp and 229 lb-ft (310 Nm), and an EV2 GT would have far less weight to move.

The wait is nearly over. After years of speculation and teasers, Mercedes-Benz’s smaller G-Class is finally edging closer to production, The compact G-Wagen sticks closely to the blocky proportions of its full-sized counterpart, aiming to carry over much of its tough, go-anywhere character.

Shrunk in scale but not in identity, it’s being positioned to take on Land Rover’s downsized Defender in the growing premium off-roader market.

Read: A Baby G-Wagon Is Coming, And Yes, It Still Looks Kind of Badass

Although this isn’t the first time the model has been spotted in testing, these new images give us the clearest view yet. Caught undergoing cold-weather trials in Europe, the compact Mercedes is visibly shorter and lower than the full-fat G-Class, but the family resemblance is obvious.

SHproshots

Peek through the camouflage and you’ll spot familiar round headlights, likely paired with a sizeable grille up front. The front fascia sits tall and upright, though the overall lines are slightly more sculpted than the full-size version. It keeps that classic G-Class stance but smooths out a few edge around the corners – literally.

According to Gordon Wagener, former Mercedes design chief, the baby G was intended to look “a touch more modern than the big one.” He made that point in an interview with Car Magazine last year, and it tracks. One of the more interesting new details is the small, triangular rear side windows.

Underpinning the compact G is a brand-new platform, entirely separate from the full-size G-Class’s traditional architecture. It abandons the ladder-frame chassis, a move that might raise questions about hardcore off-road capability and towing strength. However, the payoff should come in the form of a more refined on-road experience, with smoother ride quality and improved daily comfort.

Former tech boss Markus Schäfer referred to the platform as a “miniature ladder-frame chassis” while speaking to Autocar last year. While it isn’t a true body-on-frame setup, he explained that it shares key qualities, particularly in suspension geometry and wheel sizing. So while it won’t match the full G-Class for rock-crawling antics, it won’t be soft either.

What Will Power It?

Then there’s the all-important question of powertrains. The mini G-Class will debut as an EV, which may catch some by surprise, given the current state of the market, especially here in the US. However, remember, this is a global model and there’s plenty of interest in EVs in major markets like China and Europe.

Details on the battery pack and electric motors are still scarce, but it would make sense for Mercedes to draw from the technology used in the latest CLA and GLC EVs. That would help ensure the new model delivers a reasonable driving range along with sufficient performance.

Whether combustion-powered versions will arrive after the new baby G is released remains unclear. Demand for the full-size electric G580 with EQ Technology hasn’t been particularly strong, so it would make sense for Mercedes to at least consider offering a few combustion powertrains. In that scenario, hybrid models might also be on the table, though nothing has been confirmed.

SHproshots

Canadian Prime Minister Mark Carney is visiting China this week on a politically significant trip, one that could carry broad implications for America’s northern neighbor, especially for its closely watched automotive sector. Among the issues likely to come up is the contentious matter of auto tariffs

Back in 2024, the Canadian government imposed sweeping 100 percent tariffs on Chinese-made electric vehicles, as well as steel and aluminum. China didn’t take long to respond, slapping retaliatory tariffs on Canadian seafood, pork, and canola.

Read: Canada Could Decide The Fate Of Chinese EV Tariffs As Carney Meets Xi

While some provincial leaders have been quietly pushing for a reciprocal easing of trade restrictions, Ontario Premier Doug Ford has taken a decidedly harder line. He has made it clear that he does not support lifting the tariffs on Chinese electric vehicles under any circumstances.

“I’m absolutely 100 per cent dead against this,” Ford told reporters. “I’ll reach out to him and text message and just tell them our concerns.”

“I’m very concerned and so are my friends in Michigan concerned,” the premier said after a meeting with Republican and Democratic state representatives from Michigan, according to The Star.

“When you have the Chinese government wanting to dump cheap Chinese parts and cheap vehicles here, it costs Canadian and American jobs,” said Ford. “This is nothing against the folks in the canola business or soybean — we have a thriving soybean business here, too — so it’s not about them. I fully understand why Premier Moe is concerned, but he’s protecting Saskatchewan.”

Could Local Production Change the Narrative?

Interestingly, Ford isn’t inherently opposed to Chinese brands. In fact, he recently expressed his openness for a Chinese brand to come to Canada and to set up a production facility in Ontario.

“If they’re willing to come here and invest in a plant just like GM, Stellantis, Ford, Volkswagen, Honda, Toyota and come here and manufacture, create jobs, and create parts here, well, now we’re on a whole different page,” he said.

Canadian Chinese Tensions

Carney’s diplomatic stop marks the first official visit to China by a Canadian Prime Minister in eight years. Political tensions have simmered between the two countries since 2019, when Canadian authorities detained a Chinese tech executive in Vancouver. In apparent retaliation, two Canadian citizens were arrested and held in China for nearly three years, according to CBC.

Despite those strains, China could become an increasingly important economic partner for Canada in the coming decade. The Canadian government has set a target to double non-U.S. trade by 2035, a goal that would almost certainly require deeper ties with Beijing.

While Canada’s tariffs on Chinese EVs has helped to insulate the local auto market, the reciprocal tariffs from China have hurt farmers. Speaking with CBC, a canola farmer recently revealed the tariffs had cost his farm roughly $450,000.

Australia may be late to the EV party, but the guest list is growing fast. Despite trailing behind many nations in electric vehicle adoption, recent sales data shows an accelerating shift among local buyers. For the first time, electrified cars have outsold (gasoline) petrol-powered vehicles in a single month.

This could very well mark a turning point, positioning 2026 to potentially become the first full year where battery-assisted cars surpass traditional combustion sales.

Read: Hyundai Slashes $7K From Its Smallest EV, But It’s Still $10K Pricier Than Its Chinese Rival

In December, a total of 35,058 hybrids, plug-in hybrids, and battery-electric vehicles found new homes across the country. This was slightly above the 34,559 petrol cars sold over the same four-week period.

China’s Growing Influence on the Numbers

Zooming out to the full year, total electrified sales reached 355,887 vehicles, securing a 28.6 percent share of the overall market. Pure battery-electric vehicles made up 103,270 of that figure, accounting for an 8.3 percent slice.

Much of this momentum can be traced to the growing presence of Chinese manufacturers, whose expanding lineups have proved popular with Australian buyers. Brands such as BYD, Geely, MG, Xpeng, and Zeekr have led the charge.

Demand for EVs from China will likely grow even more this year. A slew of small and affordable electric offerings will soon hit the market, including Nio’s Firefly, the Geely EX2, and the BYD Atto 1, Australia’s Drive reports.

Petrol Still Leads the Pack

Although demand for electrified cars is increasing, petrol cars still represent the largest slice of the market. Indeed, a total of 475,279 were sold in 2025, which was 38.3 percent of the total market. Diesel models also remain popular, accounting for 29.4 percent, a figure which has remained relatively steady for the past five years.

It’s a long way from the market of a decade ago. Back in 2015, petrol cars accounted for a dominant 67 percent share, a clear sign of how much the market and consumer habits have changed in just ten years.

Traditional hybrids also had a strong showing last year. Australians bought 199,133 of them, giving the segment a 16 percent share. Plug-in hybrids, while still a smaller category, made notable progress as well. With 53,484 units sold, they secured 4.3 percent of the market, suggesting growing interest in flexible, transitional technologies

As Honda doubles down on its electric dreams, tensions are rising inside its own retail network. Honda dealerships are pushing back against the company’s joint EV venture with Sony, arguing that it’s siphoning attention and resources away from the core Honda and Acura lines, especially at a time when EV demand has begun to cool. The company, however, appears unmoved.

Sony Honda Mobility unveiled its near production-ready Afeela 1 electric sedan at this year’s Consumer Electronics Show, preparing it for a limited launch in California in late 2026. Alongside the sedan, the company also teased a second model, a crossover still in development.

Read: After A $90K Sedan, Sony Honda Thinks What America Needs Now Is Another Pricey Electric SUV

Honda will manage all direct sales, vehicle deliveries, and servicing for the Afeela lineup, and will also collaborate with independent repair providers to support ownership beyond the showroom.

Dealers Push Back on Direct Sales

This has rubbed many dealers the wrong way. In August last year, the California New Car Dealers Association filed a lawsuit against Honda and Sony, claiming the direct-sales strategy is illegal under the California Vehicle Code.

Sony Honda Mobility has countered, maintaining that it operates as a separate business entity, and therefore isn’t bound to use Honda’s existing dealership infrastructure.

“While we understand the intent may be to target a different, tech-savvy customer segment, we see no compelling reason to bypass the established dealer network that has supported the brand for decades,” Bill Feinstein, the chairman of the Honda Dealer Advisory Board, told Auto News.

Honda says it has been “clear and transparent” with dealers that they will not be involved in the sale or distribution of the Afeela models.

A Hard Sell?

Feinstein didn’t stop there. “It’s really hard to understand how a premium electric vehicle priced at $90,000-plus makes sense with EV demand softening, high interest rates and intense price competition,” he said.

He also voiced concerns about the broader impact on the business. “We’re deeply worried about the ongoing drain on financial and engineering resources. Every dollar spent in Afeela’s R&D, manufacturing and marketing is a dollar not spent on core Honda and Acura products, where we see greater potential for volume growth and profitability.”

Despite the resistance, Sony Honda Mobility isn’t phased. At last week’s CES in Las Vegas, the joint venture unveiled a prototype of its next model, an all-electric SUV that shares much of its design language with the sedan. The company says this new model could hit the US market as early as 2028

General Motors is finally stepping into the plug-in hybrid game, a move that’s been a long time coming. Despite shifting political winds that have made it easier to build thirsty combustion models, GM still sees full electric vehicles as the ultimate goal.

Read: Chevy Promised 255 Miles, The New Bolt Beats It Anyway

With tariffs weighing on costs, the federal $7,500 EV tax credit now off the table, and fuel economy standards loosened, automakers are being forced to rethink their timelines and adjust accordingly.

While speaking at the Automotive Press Association, Mary Barra confirmed that GM “had to make some fairly significant changes,” including cutting billions of dollars’ worth of EV investments. But she also made clear that new hybrids are in development, Autonews reports.

Plug-In Plans Materialize

“We are evaluating plug-in hybrids,” Barra said. “We have plans to do some. In the past, plug-ins were the only hybrids that actually counted toward the regulatory perspective. So we have plans to do those, and we’ll have hybrids where we think we need to. But again, we’re mainly investing and continuing to work on EVs because we think that’s the end game.”

In mid-2024, Barra revealed there were plans to start selling plug-in hybrids in the US in 2027. In her most recent remarks, she didn’t provide an updated timeline or name any specific GM models slated to receive the new powertrains.

However, she acknowledged that hybrids present their own challenges, particularly the fact that many owners don’t bother to plug them in. Nonetheless, GM is weighing both plug-in and conventional hybrid setups as part of its evolving strategy.

Read: Drivers Buy Plug-In Hybrids And Forget The ‘Plug-In’ Part

“We’re trying to be very thoughtful about what we do from a hybrid and a plug-in hybrid perspective,” she said.

Staying the Course on EVs

Even though GM will invest in PHEVs, it isn’t pulling back from BEVs quite as aggressively as some of its competition. For example, Ford recently took a $19.5 billion writedown after axing several important EV programs and partnerships. GM, by contrast, expects to take a $6 billion charge related to scaled-back EV spending, alongside a separate $1.6 billion charge posted in the third quarter.

Read: Stellantis Quietly Kills Its Plug-In Hybrids In America

During her remarks at the same event, Reuters reports that Barra emphasized GM’s desire to remain adaptable, especially given the uncertain regulatory environment ahead.

“I’m a little surprised at some [automakers] that are really pulling away very quickly, because we don’t know what will be in ‘29, ‘30, ’32.”

As affordable EVs from China continue to pour into Europe, the question for legacy automakers is no longer if they should respond, but how quickly they can. For Dacia, the solution is straightforward: beat them at their own game by offering budget-friendly electric cars under a European badge.

Also: Dacia Working On New Sub-€18k EV For Europe

The Romanian brand, part of the Renault Group, already sells the Spring across the continent. Built in China, the Spring has carved out a niche as one of the cheapest EVs available in Europe, including Germany, where it can be had for just €11,900 ($13,900) after a massive €5,000 (around $5,900) discount that’s offered for a limited time.

But Dacia isn’t standing still. A second entry-level electric model is set to arrive in the second quarter of next year, priced around €18,000 (about $20,100).

The Twingo Connection

This upcoming model will be based on the new Renault Twingo. Unlike the China-manufactured Spring, the new EV will be assembled in Slovenia, sharing the same Novo Mesto plant as its combustion-powered sibling.

“Our aim is basically to maximize the offer of EV in the [minicar segment],” Dacia sales chief Frank Marotte confirmed to Auto News. “What we see is that the A-segment and probably in the future the B-segment are moving very fast toward BEV models.”

A Different Flavor of Affordable

To avoid cannibalizing sales of the Spring, Dacia says the new model will be “completely different,” not just in exterior styling but in color choices, interior design, and feature mix. The idea is to give each model its own identity, even if they serve similar purposes at the affordable end of the EV spectrum.

Dacia has already dropped a few hints about the design. A teaser sketch revealed a compact hatch with crossover cues and sharp lines, while a more restrained, camouflaged prototype appeared during a quarterly business update. Neither gives the full picture, but both suggest the new EV won’t be a softened copy of the Spring.

Depending on where you live, the newcomer might actually be the cheaper option. In countries like France and the UK, government subsidies currently exclude Chinese-built models, potentially tipping the scales in favor of this Slovenia-produced car. Pricing could fall below that of the Spring once local incentives are applied.

Read: This EV Was Already Cheap, Then Dacia Knocked Off Nearly $6,000

There’s also a regulatory upside. The new EV will help Dacia lower its fleet-wide CO2 emissions average, an important piece of the puzzle as EU targets tighten. The brand missed emissions goals for both 2025 and 2024, but this new model is part of a push to stay within the rules by 2027.

The car will ride on a shortened version of Renault’s AmpR Small platform, the same one underpinning the new Twingo. Power will come from a single electric motor delivering 81 horsepower and 129 lb-ft (175 Nm) of torque, paired with a 27.5 kWh lithium-iron phosphate battery pack. At this stage, only one variant has been confirmed, and the Dacia-branded model is expected to use the same setup

The era of all-electric performance cars from BMW M is nearly upon us. For years, the brand has been feverishly developing its next generation of cars and has confirmed that the first of these new models, the electric M3, will debut in 2027.

BMW isn’t officially calling the prototype shown here the Electric M3, or even the i3 M, though both names might seem like logical picks. If we had to guess, the latter feels like the more likely direction.

What Powers the Neue Klasse M?

At the center of all future electric models from BMW M, starting with the M3, will be an innovative powertrain based on the sixth-generation technologies found across the standard Neue Klasse family. At the front axle, there will be two motors, while at the rear, there will be a further two motors, each of which drives a single rear wheel.

Read: BMW’s Electric M3 Might Be Silent, But It’s Built To Make You Scream

BMW isn’t yet ready to reveal how much power its quad-motor system will produce, but don’t be surprised if future EV Neue Klasse models have four-digit horsepower ratings.

The motors are arranged in parallel, delivering power to one gearbox per wheel. Each of the two drive units also incorporates an inverter. The motors also allow for the precise control of power and torque at each wheel, creating what BMW says is a driving experience “that has never been achieved before.”

Supplying the motors will be a 100 kWh battery pack using BMW’s latest cylindrical cells. Driving ranges will obviously vary depending on the model, but the brand notes the pack has been designed to withstand the rigors of racetrack use. To offset some of the hefty weight of the electric powertrain, these electric M models will include lightweight natural fiber components.

Rear-Drive When You Want It

In news that will no doubt please hardcore driving enthusiasts, M says the front axle can be fully decoupled, turning its models into rear-wheel-drive beasts. Switching into RWD will also improve efficiency and boost driving range, so you can save the planet and spin up the wheels at the same time.

Channeling Hyundai’s Playbook

This isn’t where the driver-focused features will end. Much like the Hyundai Ioniq 5 N, electric M Neue Klasse models, like the M3 EV, will include simulated gear shifts and a special soundscape, aiming to add some emotion into the EVs, which are often void of excitement.

The ’Heart of Joy’ high-performance control unit will control all driving-related processes, like control of the wheels and the steering, operating alongside four high-performance computers. To put it simply, M’s Neue Klasse models will be tech fests aiming to put the driver at the center of the experience.

European buyers might soon get another shot at the Jeep Wrangler, after the model was recently discontinued across the continent. You’ll still find it at dealerships through the first half of 2026, but only what’s left in stock. After that, buyers will have to wait for Jeep to introduce the next-generation model.

More: Stellantis Quietly Kills Its Plug-In Hybrids In America

Jeep recently stopped taking new orders the current Wrangler in Europe, including the UK, because it no longer complies with updated GSR2 safety regulations. These require modern driver-assistance and monitoring systems, which the Wrangler lacks, along with updated cybersecurity protections.

On top of that, emissions played a role in its departure. The turbocharged 2.0-liter GME-T4 inline-four used in European models emits up to 269 grams of CO₂ per kilometer, putting it in the same category as some high-performance V8 SUVs. The fact that Jeep discontinued all hybrid variants in the US, probably didn’t help either.

It may be gone for now, but it won’t be gone forever.

Next Chapter in Sight

According to Jeep UK managing director Kris Cholmondeley, the current model has been “a victim of regulation” and he is confident there will be “another incarnation down the line.”

“I’ve had chats with the head of Europe and the head of the global team,” Cholmondeley told Auto Express. “I think we’re all aligned that we’d like to see it back – that’s what I would say. What and when? I don’t know. I honestly don’t know if it could come back as plug-in hybrid or full-electric. I just know the brand; it’s got such heritage, it seems silly to lose that.”

Lessons from the Defender

Although limited details are known about the next-generation Wrangler, it will almost certainly lean heavily on electrification with plug-in hybrid versions, and perhaps even an EV. Cholmondeley is hopeful that Jeep can replicate what Land Rover has done with the new Defender, making a future generation of the Wrangler more refined, while still retaining the off-roading abilities that have made it so iconic.

“Look at [the Land Rover] Defender,” he said. “If you can take something like a Wrangler and have a little bit of refinement, but still keep its personality, you see the hundreds [of sales] going to thousands, don’t you?”

Read: Jeep’s New Special Edition Looks Like It Borrowed A Bronco’s Sunday Best

While the Wrangler is one of Jeep’s most iconic models, the British director said the brand can retain an important presence in Europe, even without it in its range.

“Wrangler has been an enduring icon, but it has always been niche. That’s lovely for the heart – [but] in terms of the ongoing viability, a good brand can die by being too niche and not having a broader commercial appeal,” he told Autocar.

“Our job is to protect the core and the spirit and broaden the appeal. So I love Wrangler and everything it stands for, but I also love Avenger and Compass. They’ve got all that Jeep DNA running through them, but they’ve got much broader appeal.”

California California is moving to jumpstart electric vehicle momentum in the wake of the now-vanished $7,500 federal tax credit, and it’s bringing serious money to the table. To keep buyers engaged and support EV adoption, the state plans to introduce a new point-of-sale incentive designed to lower the upfront cost of electric vehicles right at the dealership.

The centerpiece of Governor Gavin Newsom’s newly unveiled $348.9 billion state budget proposal includes a one-time $200 million allocation for a point-of-sale rebate program targeting light-duty zero-emissions vehicles. Specifics are still under development, including how many rebates will be offered and which vehicles will qualify.

Next Phase of the EV Push

“Despite federal interference, the governor maintains his commitment to protecting public health and achieving California’s world-leading climate agenda,” California Air Resources Board spokesperson Lindsay Buckley said. “This incentive program will help continue the state’s ZEV momentum, especially with the federal administration eliminating the federal EV tax credit and carpool lane access.”

Read: California Won’t Replace $7,500 EV Tax Credit as Newsom Accuses GM of Selling Out

Car buyers in California rushed to snag new EVs in the third quarter of last year before the tax credit expired. Indeed, a record number of 124,700 zero-emission vehicles and plug-in hybrids were purchased across the state between July and September, the highest number on record. Predictably, sales tapered off in the fourth quarter once the credit was gone.

It’s not just consumers who will be pleased to hear California has incentives up its sleeve. Back in September, a group of automakers including Honda, Hyundai, VW, Audi, and Rivian sent a letter to Governor Newsom, urging the state to create a $5,000 EV rebate to offset the loss of the federal incentive previously scrapped under the Trump administration.

An incentive program won’t just benefit the hip pockets of locals. As reported by the LA Times, transportation is the largest source of climate and air pollution in California, so the more zero-emissions vehicles that can be sold there, the cleaner the air will become.

Also: California Flips On Immigrant Truckers, And Now Washington Wants Payback

Governor Newsom added that the state “refuse[s] to be bystanders” as China and other countries lead the industry’s shift to EVs.

“We must continue our prudent fiscal management, funding our reserves, and continuing the investments Californians rely on, from education to public safety, all while preparing for Trump’s volatility outside our control,” he said. “This is what responsible governance looks like.”

Electric vehicle sales in Japan have never quite taken off, but disruptions are underway. For nearly 15 years, Nissan held the top spot in the country’s EV market, thanks largely to the Leaf. Now, that grip is loosening.

A cooling appetite for Nissan’s EVs and rising demand for newer offerings from rivals have pushed the market into a new phase. For the first time, Nissan has been overtaken as Japan’s top-selling EV brand in quarterly sales, with Toyota stepping into the lead during Q4 2025.

Read: Toyota Sold Just 18 EVs In Japan Last Month

According to the latest data from Japan’s automotive industry association, Toyota sold 3,684 EVs domestically in the fourth quarter of 2025, a surge helped by the October launch of the bZ4X. While that figure is still modest by global standards, it represents a thirteenfold increase over the same period in 2024.

Nissan, meanwhile, saw its electric sales plunge 56 percent to 2,857 vehicles. The Leaf and Sakura both experienced weaker demand in the closing months of the year.

The momentum wasn’t limited to Toyota. According to Nikkei Asia, Honda also made gains, boosted by the launch of the N-One e:. With a range of up to 295 kilometers (183 miles) on a single charge, it now holds the title for longest-range electric minicar in the market.

Honda sold 2,732 units in Q4, a lift that was enough to pass Tesla, which also saw its numbers rise. Tesla’s sales increased by 62 percent year over year, reaching 2,600 vehicles in the quarter.

EVs Still a Niche in Japan

While EV sales have accelerated in much of the world over the past few years, they still make up only a small fraction of the Japanese market. At present, electric vehicles account for just 1.9 percent of all new car sales in the country. This is the lowest share among advanced economies.

Several new models slated for launch in 2026 could help lift that figure, and the government is moving to speed up the transition too. This year, qualifying buyers can receive up to 1.3 million yen ($8,300) in subsidies, aimed at nudging more drivers toward electric.

BYD may soon become a more significant contender. The Chinese automaker posted a 72 percent increase in Q4 sales, reaching 832 units. It plans to launch its all-new Racco electric kei car in the Japanese market this year, positioning it to make a more aggressive push into a historically difficult segment.

For China’s most wealthiest car buyers, the appeal of driving often takes a back seat to being driven. Luxury isn’t measured in horsepower alone, but in legroom, comfort, and the ability to stretch out while someone else handles traffic.

With that in mind, Nio is preparing a new electric SUV designed squarely for this audience, and for larger families as well. Shown here in newly released photos, the Nio ES9 is set to join the brand’s growing lineup, slotting in just above the ES8.

Big Numbers, Bigger Presence

This upcoming flagship will become the largest electric SUV available in China, overtaking the ES8 for that title, according to CarNewsChina. Figures from the Ministry of Industry and Information Technology confirm it stretches 5,365 mm (211.2 inches) in length, spans 2,029 mm (79.8 inches) in width, and stands 1,870 mm (73.6 inches) tall.

Read: This Full-Size Electric SUV Packs 456 HP And Costs Less Than A Honda Civic

That makes it 85 mm (3.3 inches) longer, 29 mm (1.1 inches) wider, and 70 mm (2.7 inches) taller than the ES8. More importantly, the wheelbase stretches to 3,250 mm (127.9 inches), an increase of 120 mm (4.7 inches) over the ES8, which translates to noticeably more room for passengers.

To put that in perspective, its footprint lands somewhere between the standard Cadillac Escalade and the extended-wheelbase Escalade ESV.

Visually, the design of the ES9 is very similar to its smaller brother, although it does have a more upright and squared front fascia. There are split DRLs and headlights at the front, alongside a large grille and a ribbon of black along the bottom of the bumper. As with the ES8, there’s a LiDAR protruding from the roof.

Around back, the design leans toward simplicity, featuring a single LED light bar and little else of interest. Other photos of the SUV reveal that retractable side steps will be available, as will at least six different wheel designs/finishes. Shoppers will also be able to choose between black or silver accents running along the body.

Dual-Motor Drive

We don’t yet know what the cabin of the ES9 will look like, but we do have some important powertrain details. Powering the SUV will be a 241 hp (177 kW) electric motor at the front axle and a 456 hp (335 kW) motor at the rear axle, combining to deliver 697 hp (513 kW) and 516 lb-ft (700 Nm) of torque. The battery pack will be sourced from CATL and is expected to have a capacity of 102 kWh.

There’s no word on what charging speeds this battery will support, but in the land of Nio, charging times aren’t particularly important, as Nio operates a huge battery-swapping network where a depleted battery can be replaced with a fully charged one in just 3 minutes.

A full reveal is expected in the coming months, with its domestic launch set to follow soon after. Availability in markets outside China has not yet been confirmed.

Price cuts aren’t just a domestic strategy for Chinese automakers. Even Western legacy brands are jumping in. Last week, BMW announced sweeping reductions across 31 of its models in China, highlighting a more aggressive effort to keep pace with intensifying competition in the world’s largest auto market.

The biggest cut came to the BMW i7 M70L, the high-performance flagship of the all-electric 7-Series. This dual-motor sedan delivers 659 horsepower and 811 lb-ft (1,100 Nm) of torque. As of last week, it now carries a price tag that’s 301,000 yuan lower, a reduction of roughly $42,000.

Read: BMW Is Cranking Out Cars “Like Pretzels” And Says Even China Can’t Keep Up

While the i7 had the largest drop in raw numbers, the steepest percentage cut went to the iX1 eDrive25L. BMW trimmed the price of the long-wheelbase variant of the compact SUV by 24 percent, bringing the new starting figure to 228,000 yuan, or about $32,600.

Speaking to Bloomberg, BMW said the price changes are part of its “regular price management,” adding that “final transaction prices are independently negotiated and determined between authorized BMW dealers and customers.”

How Far Will Discounts Go?

Behind the curtain, though, the timing suggests more than just routine recalibration. November marked the second straight month of declining sales in China, according to data from the China Passenger Car Association. That slide has spurred several automakers to adjust pricing.

Meanwhile, regulators have introduced measures designed to prevent brands from undercutting costs, prohibiting sales below production cost and banning dealer incentives that push prices beneath that threshold, Bloomberg reports.

Also: China Is Banning Tesla-Style Door Handles

BMW’s recent cuts appear to bring official pricing closer to what customers were already paying after negotiations. According to Yale Zhang, managing director at Automotive Foresight, the updated stickers largely reflect existing transaction norms rather than undercutting them. “The new prices aren’t any lower than typical dealer selling prices,” Zhang noted.

When Deals Become a Warning Sign

Big savings could be just around the corner. With the Chinese New Year approaching in February, many manufacturers are expected to introduce further incentives in hopes of front-loading first-quarter sales.

At least 14 car brands have already rolled out some form of discount or incentive program since the beginning of 2026. Zhang believes this trend is less a temporary blip than a reflection of broader pressures within the market.

“Various kinds of promotional activities may ebb and flow in the market from time to time, but they are here to stay,” Zhang told the news outlet.

Chinese authorities, meanwhile, are taking a cautious stance. With more manufacturers opting to slash prices, regulators are increasingly concerned about the potential knock-on effects. They worry that an extended period of discounts could spark deflation, disrupt the automotive supply chain, and put downward pressure on wages.

In just a few years, Chinese automakers may do more than disrupt the global car industry. As they scale up overseas and lean into their strengths in electrification and cost control, the shift looks less like a disruption and more like a permanent redrawing of the map. If the current pace holds, they could control a third of the global market within five years.

Read: One In Ten Cars Sold In The UK Now Comes From China

Analysts at UBS, the Swiss investment bank and financial services company, point out that while China’s domestic car market continues to grow, it’s the overseas expansion that’s becoming increasingly important for them. According to their latest estimates, foreign markets now represent about 20 percent of industry sales for Chinese carmakers, and in some cases, up to 50 percent of their profits.

The Global Impact of Expansion

UBS says its forecast remains unchanged from two years ago, even as Chinese manufacturers scale up production in Europe and some legacy automakers begin stepping back from their EV plans, citing uncertain returns and cooling demand.

“The main drag was due to Europe’s slowdown of EV adoption, and tariffs and protectionism against Chinese EVs,” said Paul Gong, UBS’s lead analyst for Chinese EVs. “I think 2024 progress was slower than expected, but recent signs have shown some catch-up.”

The South China Morning Post (SCMP) reports that China’s long-term bets on electric vehicles, vertical integration, and aggressive supply chain development appear to be paying off. These moves haven’t just given Chinese brands a cost advantage, they’ve made it easier to scale production and respond quickly to market shifts.

Chinese Carmakers Gain Speed as Global Rivals Lose Ground

Frank Diana, a managing partner at Tata Consultancy Services, says China’s edge is not just about scale but about speed. “The fact that [China] has been learning aggressively means that they’re going to have a dominant position and market share,” he explained. “But they’re not alone … you will see the rise of other players in the space.”

UBS forecasts that the rise of Chinese brands will cut deep into the dominance of current global leaders. Combined, Volkswagen and Toyota now hold 81 percent of the market share in key segments. By 2030, that number could drop to just 58 percent. Meanwhile, Tesla’s global share, currently sitting at around 2 percent, could grow to as much as 8 percent by the same year.

Also helping Chinese brands expand internationally is a move to localized production. In Thailand, automakers such as SAIC Motor, Great Wall, BYD, GAC, Changan Automobile, and Chery already operate assembly plants. Great Wall and BYD have also established manufacturing in Brazil, with BYD developing a large-scale facility in Hungary to support its growing footprint in Europe.

India Eyes a Bigger Role

China isn’t the only nation that could see its car industry expand rapidly by 2030. India, too, is positioning itself for growth. Domestic automakers like Tata and Mahindra are increasing their share in the local market and looking outward.

However, they face stiff competition, not only from dominant player Maruti Suzuki, but also from Chinese-owned MG Motor, which has introduced several new models to Indian buyers. BYD has also begun to establish a presence, and both Chery and Great Wall have plans to enter the market, reports SCMP.

Still, analysts suggest that China’s early investments gave it a lasting edge. The ability to learn quickly, build tightly controlled supply chains, and manage costs efficiently has kept its companies ahead.

“The EV supply chain is dominated by Chinese companies,” said analyst Ramakrishnan. “The India EV supply chain, including electronics, is imported from China.”

Fewer Players, Bigger Stakes in the Next Phase of EVs

In Diana’s view, the current market is heading toward consolidation. China’s early lead puts it in a strong position as the EV space matures into a more concentrated field of major players.

“So there will be consolidation even at the EV market level, and you end up with 10 to 15 platform orchestrators made up of [original equipment manufacturers and] big technology companies,” he said.

Mercedes-Benz isn’t waiting around when it comes to expanding its electric lineup in China. Less than six months after unveiling the all-new GLC with EQ Technology in Europe, the first images of the long-wheelbase version have surfaced, tailored specifically for the Chinese market.

Scheduled to launch as the GLC 350 L, this variant stretches the wheelbase to 3,027 mm (119 inches), compared to the 2,972 mm (115.2 inches) found in Western versions. The extra 55 mm, or about 2.1 inches, may not seem dramatic on paper, but in practice, it’s likely to matter quite a bit for those riding in the back.

Read: Star-Stricken Mercedes GLC EV Has A Grille Big Enough To Swallow A BMW iX3

Without a direct comparison, the extended-wheelbase GLC EQ looks much like the standard version. The longer rear doors are the most visible difference, with a small ‘L’ badge on the tailgate offering the only other clear indication of the added length. Otherwise, the SUV looks quite suave, though we’re still not entirely convinced by the oversized illuminated grille up front.

So far, early details from China haven’t confirmed the exact battery specifications for the local version. Globally, the GLC EQ is equipped with a 94 kWh lithium-ion pack, offering up to 443 miles (713 km) of range.

It’s likely that the Chinese model will carry the same setup, though local testing standards tend to be more generous. If that holds true, the official figure could land somewhere north of 500 miles (805 km) on a full charge.

According to data released by Chinese authorities, the GLC 350 L comes standard with a dual-motor setup. The front axle motor produces up to 219 hp (163 kW), while the rear one delivers a more substantial 402 hp (300 kW). By comparison, Europe’s sole announced version, the GLC 400 EQ, offers a combined output of 483 hp.

Mercedes-Benz has a lot riding on the GLC EQ’s performance in China. Competition from domestic EV makers is intensifying, and the German carmaker saw a 7 percent dip in Chinese sales in 2024. Full-year figures for 2025 haven’t been released yet, but expectations are for another decline. The GLC EQ’s success may play a key role in reversing that trend.

As more carmakers double down on their efforts to cater specifically to China’s fast-evolving EV market, buyers in other parts of the world are being left out of some genuinely interesting vehicles. The VW ID. Era 9X is one of the latest examples, and it brings quite a bit to the table.

Revealed through filings with China’s Ministry of Industry and Information Technology, as well as VW itself, this new production SUV emerges from the SAIC Volkswagen joint venture. It’s a large, range-extender SUV positioned to compete in a growing segment of vehicles that blend electric driving with longer-distance practicality.

Read: VW’s Next Electric Sedan Looks Nothing Like You’d Expect

Battery-electric SUVs are increasingly common in China, but they still don’t meet the needs of every buyer. That’s where extended-range EVs, or EREVs, come into their own.

A Full-Size SUV Built for China

The VW ID. Era 9X, which somewhat curiously shares its 9X badge with Zeekr’s own EREV SUV, is bigger than many popular Western model, including the VW Atlas and Touareg. It even edges out the BMW X7 in overall length. Measuring 5,207 mm (205 inches) long, 1,997 mm (78.6 inches) wide, and 1,810 mm (71.2 inches) tall, the Era 9X rides on a 3,070 mm (120.8-inch) wheelbase.

For reference, the BMW X7 comes in at 5,181 mm (204 inches) in length, 2,000 mm (78.7 inches) wide, and 1,805 mm (71.1 inches) tall, with a 3,105 mm (122.2-inch) wheelbase. This makes the ID. Era 9X slightly longer and taller, though marginally narrower and with a slightly shorter wheelbase. In terms of footprint, it’s firmly in full-size luxury SUV territory.

The exterior design remains remarkably close to the original ID. Era concept that VW unveiled earlier last year, with a premium and contemporary look that hasn’t been watered down much in the transition to production.

Volkswagen hasn’t revealed the production interior yet. But if it mirrors the concept closely, expect a massive dashboard-spanning infotainment system to carry over. There may also be an optional roof-mounted display for rear passengers. The spec sheet confirms that the ID. Era 9X will come with six seats in a 2+2+2 arrangement.

Powertrain Options

Where things get more interesting is under the skin. The ID. Era 9X is an extended-range electric vehicle, using a gasoline engine only to charge the battery. Volkswagen will offer it in three powertrain configurations, with both rear- and all-wheel drive options.

The base model features a single rear-mounted electric motor producing 220 kW (295 hp), powered by a 51.1 kWh LFP battery. It delivers a pure electric range of up to 267 km (166 miles). The curb weight comes in at 2,600 kg (5,732 lbs).

The second variant uses the same electric motor driving the rear wheels but swaps in a larger 65.2 kWh NMC battery. This upgrade boosts the pure electric range to 340 km (211 miles). It weighs slightly more at 2,620 kg (5,776 lbs).

Finally, at the top end, it keeps the 65.2 kWh battery but adds a second electric motor on the rear axle, bumping total output to 380 kW (510 hp). This dual-motor setup increases curb weight to 2,700 kg (5,952 lbs). Pure electric range drops slightly to 321 km (199 miles).

While full combined range figures haven’t been published, all three configurations are expected to comfortably exceed 1,000 km (over 600 miles) when using both battery and gasoline power, depending on the final gas tank capacity.

Will It Go Global?

Pricing is still under wraps and should be announced in the coming months before the vehicle officially goes on sale. While a Western launch isn’t confirmed, there’s reason to keep a small window of optimism open for certain martkets.

Mazda already offers its China-built JV models in Europe and Australia, having debuted the new CX-6e SUV earlier today, and Nissan is preparing to follow suit. It’s not out of the question for Volkswagen to consider doing the same with the ID. Era 9X, at least in select international markets, though a US launch is firmly off the table.

Launching a brand-new EV in China under a fresh badge with no Audi rings in sight might have seemed like an odd gamble at the time. But with the E5 Sportback now crowned China Car of the Year, Audi’s unconventional move is starting to look like a smart one. The car, developed in partnership with SAIC, is the first product of a standalone brand created specifically for the Chinese market.

While the China Car of the Year awards don’t carry quite the same global weight as the World Car Awards, they’re still judged by a panel that includes automotive journalists and industry insiders. And since the awards launched in 2014, Western brands have consistently punched above their weight.

Read: Of Course, The New AUDI E5 EV Is Ridiculously Cheap In China

Audi, or rather in this case, AUDI, began production of the E5 Sportback in August last year, with the first deliveries following just a month later. It enters a crowded but fast-moving EV space, where pricing pressure and tech innovation come at breakneck speed. Like many of its peers, the E5 Sportback offers strong value, a factor that’s undoubtedly helped fuel interest.

The EV, combining German engineering and quality with Chinese tech, is available in four different configurations. Prices range from 235,900 yuan (about $33,800) to 319,900 yuan (roughly $45,800) for the range-topping Flagship Quattro. That top-tier model features dual motors delivering 776 hp, a 100 kWh battery, and an estimated range of 402 miles (647 km) on a single charge.

Spurred on by the success of the sleek estate, Audi presented its new E SUV Concept at November’s Guangzhou Auto Show. This model has a similar design to the Sportback and will be launched later this year as the E7X.

The Other Winners

Of course, the E5 Sportback wasn’t the only car to earn recognition. Other winners included the Nio ET9, named Luxury Car of the Year, the iCAR V23 as Budget Car of the Year, the Ferrari 296 Speciale for Performance Car of the Year, and Audi’s own A5L, which took home Design Car of the Year.

Last year, the overall title went to the Aito M9, a flagship electric SUV. Other award recipients included the Mercedes-Benz E-Class, the Geely Galaxy E5, the Hyundai Ioniq 5 N, and Volkswagen’s ID.UNYX. In recent years, premium European brands have maintained a strong showing. The Mercedes-Benz S-Class won in 2022, followed by the EQE in 2023, and the BMW i7 in 2024.

As electric vehicles flood into Australia’s increasingly crowded new car market, the pressure is mounting, particularly from aggressively priced models coming out of China. In response, Hyundai has rolled out some major price cuts to two of its more compelling EV offerings, the compact Inster and the updated Kona Electric.

Starting with the pint-sized Inster, which we drove just a few months ago, price cuts mean buyers can now save upwards of AU$7,288 (equal to US$4,900 at current exchange rates).

The base Inster Standard Range now starts at AU$35,990 (US$24,200), and that figure includes all on-road costs. Even with the adjustment, it’s still undercut by the base BYD Atto 1, which starts from just AU$26,500 (US$17,800) in standard trim, or around AU$30,650 (US$20,600) for the Premium version.

Read: American Brands Shut Out As One Country Dominates World Car Of The Year Finalists

The Inster itself brings a lot to the table in terms of practicality. It makes excellent use of space and comes with a solid feature set for its size. But those strengths haven’t translated into strong sales, largely due to its steep pricing. Between June and December last year, just 467 units found homes in Australia, according to data from CarExpert.

Slashing Prices Across the EV Board

Even more significant price cuts have been made to the Hyundai Kona Electric and Hybrid. The entry-level Kona Electric Standard Range now lists at AU$45,990 (US$30,900), marking a price drop of more than AU$13,000 ($8,700). The Kona Hybrid also sees a notable cut, with prices falling to AU$39,990 (US$26,900).

The price cuts bring the Kona Electric cost to the Geely EX5, which starts at a touch over AU$44,000 (US$29,500). Elsewhere, Hyundai has slashed prices of the Kona Electric Extended Range by AU$13,357 (US$9,000) to $49,990 (US$33,600), including all on-road fees.

The price of the Kona Electric Premium has also been cut by AU$13,857 ($9,300), meaning it’s no longer available from AU$59,990 (US$40,300).

The sales figures reflect the challenges Hyundai has faced. Just 541 Kona Electrics were sold locally last year, making up only 2.4 percent of total Kona sales, hardly the breakout performance the brand had hoped for.

Lowering the barrier to entry not only helps the Kona Electric stay in the game against newer Chinese models, it also clears space for Hyundai’s incoming Elexio.

Built in China and priced from AU$59,990 (US$40,300), the Elexio now occupies the middle ground between the Kona Electric and the more premium Ioniq 5. Hyundai positions it as a rival to the Kia EV5, BYD Sealion 7, and Tesla Model Y, creating a more layered EV lineup with a clearer progression.

Few would expect a vacuum cleaner company to roll up to CES with supercars, but that’s exactly what Dreame just did. Chinese tech firm Dreame, best known for producing competitively priced vacuum cleaners, has unveiled three dramatic high-performance cars at the Consumer Electronics Show in Las Vegas, introduced under the newly formed Kosmera and Nebula Next brands.

As early teasers hinted, Dreame has looked to Bugatti for stylistic inspiration. Even so, while initial renders leaned heavily into Chiron-like mimicry, the finished models veer in their own direction, avoiding full-blown imitation but still bearing more than a few familiar cues.

Read: This Four-Door EV From China Now Looks Like Bugatti’s Rarest One-Off

What many might not know is that Dreame sits within Xiaomi’s sprawling ecological chain. The tech giant has invested in the company and may be lending more than just capital. Xiaomi itself has already become a serious contender in China’s burgeoning EV market, though it remains unclear if Dreame’s pivot is directly tied to Xiaomi’s automotive push.

Bugatti Echoes, Not Clones

The first model under the Kosmera name is described as a super sports car and comes dressed in black. Its four-door configuration immediately sets it apart, but the front end is where things get especially familiar. The grille, framed in carbon fiber, strongly resembles the Bugatti Mistral and Brouillard. Large air intakes flank the front, and the overall fascia feels unmistakably French in its inspiration.

Headlight and DRL placement continue the Bugatti homage, as does the sculpted hood with prominent air extraction vents, a detail nearly identical to the one-off Brouillard.

Autohome

The side profile, however, strikes a different chord. With smooth surfaces and a gradually sloping roofline, it brings to mind a lengthened Porsche Taycan more than anything from Molsheim. Around back, the car adds its own flair with a full-width LED light bar, a fixed rear wing, and a vertical brake light extending down the rear window.

Also: Dreame’s Cullinan SUV Clone Might Be Rolls-Royce’s Worst Nightmare

According to Autohome, this Kosmera sedan houses four electric motors, combining for a total of 1,903 horsepower. Intriguingly, the car reportedly weighs exactly 1,903 kilograms (4,195 pounds), creating a symmetrical 1:1 power-to-weight ratio that sounds almost too perfect to be real.

While most technical details remain under wraps, the car is said to incorporate a complex suspension setup and a number of 3D-printed components.

A Second Concept

Kosmera’s second offering looks quite different. It’s also a sedan, finished in a dark purple paint, but the design is less dramatic. While the front doesn’t look like a Bugatti, the same can’t be said about the rear, as it bears a resemblance to the Chiron, including its taillights, the shape of the fascia and decklid, and the split rear window. As for specs, Dreame hasn’t released anything about this model’s capabilities just yet.

Autohome

Rounding out the trio is the Nebula Next 01, the only car not wearing a Kosmera badge. This is the model Dreame teased earlier. Painted green, it has the most supercar-like design of the trio, but surprisingly, it is also a four-door. It rocks loads of exposed carbon fiber parts, including the front splitter and rear diffuser, and also has similar Bugatti-inspired headlights to the first of the Kosmera cars.

See: Remember Dreame’s Rolls-Royce Clone? It’s Got A Bentley Brother

Local media claims the Nebula Next 01 is powered by the same four-motor setup with 1,903 horsepower. If accurate, it should rocket from 0 to 100 km/h (62 mph) in just 1.8 seconds. As of now, Dreame hasn’t confirmed whether and when this concept will reach production.

Autohome