The global electric car party is still raging, but the US has decided to go home to bed early with a nice soothing cup of gasoline. New data shows worldwide EV sales hit 20.7 million units in 2025, up a healthy 20 percent from 2024.

That total was capped by a strong finish, with roughly 2.1 million EVs sold globally in December alone, underlining that momentum elsewhere remained intact through year-end. Almost everywhere on Earth people bought more electric cars. But in North America it’s a different story.

More: If You Think EV Sales Are Dead, You’re Probably Staring At The Wrong Map

China remained the heavyweight champion with 12.9 million EVs sold, up 17 percent. Europe turned into the surprise star, rocketing ahead by 33 percent to 4.3 million units. Even the rest of the world got in on the action with a massive 48 percent surge to 1.7 million units.

Much of that growth outside the traditional EV strongholds was fueled by a flood of Chinese-built models, as domestic price competition pushed manufacturers to look overseas.

Then we get to North America, which managed a rather awkward 4 percent decline, Rho Motion reports. And it would have been worse if Mexico’s EV sales hadn’t grown 29 percent thanks to an influx of cheap Chinese cars.

In the US, that annual decline masked a sharp late-year swing, with buyers rushing to lock in incentives before September, followed by a steep pullback once those credits disappeared.

Tax-Credit Carnage

The removal of federal tax credits at the end of September pulled the rug out from under the US market, and buyers reacted exactly as you might expect, meaning that EV sales for the full year grew by just 1 percent. Sales spiked in August and September as incentives wound down, then collapsed in the final quarter, dropping nearly 50 percent compared with the previous quarter.

But in Canada, which lost its EV incentives much earlier in 2025, full-year sales tanked by 49 percent.

Analysts now predict US EV sales will shrink by almost a third in 2026. No wonder Ford is scrapping its F-150 Lightning in favor of a hybrid and Ram opted not to bring an electric truck to market at all.

Europe Keeps Plugging In

Across the Atlantic the mood could not be more different. Europe sprinted ahead thanks to stronger subsidies and looming emissions rules. Germany jumped 48 percent and the UK rose 27 percent.

Even France managed to finish the year in positive territory after a slow start. That late recovery in France was driven largely by renewed consumer incentives, after months spent underwater earlier in the year.

Other regions quietly delivered impressive numbers too. Southeast Asia almost doubled sales, South and Central America grew by 49 percent, and South Korea enjoyed a 50 percent rise thanks to new models and government incentives.

Japan, however, stayed stubbornly loyal to hybrids, proving not every country is ready to go fully electric. EV penetration there remained stuck at around 3 percent for yet another year, despite steady gains elsewhere in the region.

Incentives Are Key

The message from the data is clear. Around the world the EV transition is still accelerating, but America had a taste and decided that, without financial sweeteners, it preferred the old menu. Whether that’s a temporary pause or a long detour will depend on politics, prices, and what carmakers do next.

EV sales by region 2025

Data: Rho Motion

The Lotus Eletre might soon become a far more accessible proposition in Canada, thanks to a new trade agreement with China that could take a wrecking ball to the electric SUV’s bloated sticker price. What is now priced well into super-luxury territory may soon fall within reach for a much broader group of buyers.

Read: We Drove Lotus’ Electric SUV To See If It Can Silence Its Haters

As in the United States, 100 percent tariffs have pushed the Eletre’s price in Canada into the stratosphere, starting at a jaw-tightening CA$313,500 (about US$226,000 at current exchange rates). That puts it in the same league as a mid-spec Bentley Bentayga and even pricier than the Lamborghini Urus E. In the U.S., things aren’t much better, with a starting price of US$229,000 before delivery.

Tariff Relief

With the new policy in effect, the first 49,000 Chinese EVs imported into Canada each year will now face a reduced 6.1 percent tariff. Lotus claims this will cause the Eletre’s price to “fall sharply by about 50 percent.”

However, it’s worth noting that under the terms of the agreement, half of those 49,000 vehicles are required to start below CA$35,000 (US$25,000), which the Eletre most definitely does not.

Lotus announced the change on Chinese social media, although it stopped short of confirming a new starting price for the Eletre. If it does indeed drop by 50 percent, it could start from around CA$156,000 ($112,500), significantly undercutting the Urus and positioning it closer to the Porsche Cayenne GTS, which starts at CA$134,800 ($97,200).

“Canada has always been an important market with great strategic significance in the global territory of Lotus sports cars,” Lotus Group chief executive Feng Qingfeng wrote in a social media posting. “Users here have a high appreciation for high performance and driving pleasure. We warmly welcome the new tariff optimization policy, which has created a more open and fair market environment for international car brands.”

More: Canada Just Invited China’s Biggest EV Makers To Build Cars On America’s Border

Lotus currently operates six dealerships across Canada and will no doubt be eager to ramp up sales of the Eletre. The flagship model features a pair of electric motors that combine to produce 905 hp, allowing a 0-100 km/h (62 mph) in a blistering 2.95 seconds and reach a 265 km/h (164 mph) top speed. It also has a quoted WLTP range of 280 miles.

A Hybrid Eletre Is in the Works Too

Lotus isn’t stopping with just the all-electric Eletre. A hybrid version is also in the works, offering an alternative path for buyers who aren’t quite ready to go fully electric. Official documents out of China confirm that this variant, called the Eletre For-Me, retains the SUV’s shape and layout but adds a turbocharged four-cylinder engine to the mix.

Read: Lotus Dropped A Gas Engine Into The Eletre SUV

It’s Lotus’s first step back from its earlier pledge to go EV-only, and while the full specs haven’t been disclosed, early reports point to a combined output of 952 hp, slightly more than the current top-spec Eletre R.

We had a chance to review the all-electric Eletre last year and were pleasantly surprised. It’s quick, feels well-built, and has a beautiful interior that suits the category. Will those qualities be enough to convince Canadians to buy it if the price drops by half?

Canadian Prime Minister Mark Carney says several Chinese carmakers are showing interest in building affordable electric vehicles on Canadian soil, just days after the country signed a new trade agreement with the world’s largest EV manufacturing nation.

Read: Canada Just Let Cheap Chinese EVs Back In

Carney met with Chinese President Xi Jinping in Beijing late last week, where the two leaders finalized a deal that will sharply cut tariffs on Chinese EVs entering Canada, dropping them from 100 percent to 6.1 percent. As part of the agreement, a cap will initially limit imports to 49,000 vehicles per year, with half of those required to start below CA$35,000 (roughly $25,000 USD).

Framing the cap as a measured opening rather than a floodgate, Carney pointed out that 49,000 vehicles matches the number of Chinese-made EVs imported into Canada in 2023.

A Cautious Green Light

“We’ve had direct conversations directly from the Chinese companies…and collectively are the world’s leaders in this space, with explicit interest and intention to partner with Canadian companies,” Carney said.

He described the deal as a phased rollout designed to encourage collaboration between Chinese automakers and local firms. “This is an opportunity for Ontario. It’s an opportunity for Ontario workers, an opportunity for Canada, done in a controlled way with a modest start,” he added.

Any Chinese car manufacturer that intends to build EVs in Canada will need to meet the nation’s labor standards, Carney said, and reiterated that he wants to see Canada remain competitive in the auto market well into the future.

“We don’t want to be competitive in the market of 2000, 2010,” he said. “We want to become competitive in the market in the future.”

A Small Slice of the Market. For Now

To address concerns about disruption, Carney pointed out that the import cap amounts to less than three percent of Canada’s annual new car sales, which hover around 1.8 million vehicles. He called the agreement a “modest” first step, noting that a review is built into the deal after three years to gauge market impact.

Perhaps surprisingly, US President Donald Trump said the trade deal was a good one, despite US Trade Representative Jamieson Greer deriding it as “problematic for Canada.” According to Trump, “Well, it’s okay. That’s what he [Carney] should be doing. If you can get a deal with China, you should do that.”

Premier Hits Out

Not everyone is a fan of seeing Canada reduce tariffs on Chinese EVs. Ontario Premier Doug Ford has criticized the deal, claiming it will hurt the local economy.

“By lowering tariffs on Chinese electric vehicles, this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination, which would hurt our economy and lead to job losses,” he said, according to CP24.

Unifor National President Lana Payne also voiced concern. “Providing a foothold to cheap Chinese EVs, backed by massive state subsidies [and] overproduction…puts Canadian auto jobs at risk while rewarding labour violations and unfair trade practices,” she said.

After bombarding us with EV news earlier this month, including the reveal of the new EV2 and several GT performance models, Kia is showing us that it hasn’t forgotten about its combustion and hybrid models. It’s dropped three images of a compact 2027 Niro crossover fresh from a mid-life makeover.

Related: Kia Might Offer A Manual K4 Hatch In America, But The Wagon’s Another Story

But there’s still an EV connection to this news, and not just because Kia still sells the Niro with an optional pure electric powertrain. Kia’s designers clearly had the automaker’s sharper-suited electric SUVs in mind when they picked up the scalpel for the Niro update. The front end of the updated Niro borrows heavily from models like the EV2, 3, 5 and 9.

The new nose is squarer and more upright, and it adopts the wishbone-shaped DRLs of its electric brothers. Kia has even managed to draw attention away from the air intakes the combustion car’s radiator needs by giving the Niro an EV-style body-color band between the headlights.

There are no major changes to the central body structure and doors, but  the designers have definitely been busy at the rear end. The Niro doesn’t take on the EV models’ Y-shaped taillights, but it does get an entirely new hatch that looks far cleaner and more modern.

Review: Before You Buy A Small SUV, Look At Kia’s 2026 K4 Turbo Hatch First

It’s similar to the one on the ICE-powered Sportage SUV, and that means the license plate has been moved down to the rear bumper. We can also see a new black panel that echoes the boomerang shape of the rear lights, and the whole shebang rides on new 18-inch wheels, Kia says.

Screen Refresh

The updates aren’t restricted to the Niro’s exterior. Inside, it gets a redesigned upper half of the dash featuring same conjoined, twin-12.3-inch digital displays you’ll find on the numbered EV models and also the latest Sportage, plus a new-look two-spoke steering wheel.

Hybrid or EV?

Kia revealed the Niro’s new look in Korea, adding that we’ll find out more about the MY27 crossover in March. So we might have to wait until then to learn whether there are any changes to the drivetrain.

The current Niro comes with a choice of 139 hp (141 PS) 1.6-liter hybrid and 180 hp (183 PS) 1.6 plug-in hybrid petrol engines, though it’s also available in some markets as a 201 hp (204 PS / 150 kW) EV with a 253-mile (407 km) EPA range.

A Kia official said, “The New Niro, which has maintained its heritage as the first eco-friendly SUV, will provide high customer satisfaction with excellent usability based on practical value as well as a high-quality design that reflects the latest trends.”

If there were an award for the automaker with the least inspiring lineup, Mitsubishi might have a strong claim to it. But change is on the horizon. The Japanese brand is set to add some spark to its range with a new all-electric model, even if, as has become something of a pattern lately, the vehicle won’t be one of its own creations.

Read: Foxconn’s Pininfarina-Designed Model B Could Steal Tesla’s Thunder In The Small Segment

As covered previously, Mitsubishi has teamed up with Taiwanese contract manufacturer Foxconn, best known for assembling the iPhone. Together, they’ll introduce an electric hatchback based on Foxtron’s newly unveiled Bria designed by famed Italian studio Pininfarina.

That car, based on the striking Model B Concept, made its production debut in Taiwan and could bring a welcome dose of personality to Mitsubishi’s offerings.

Powering the Bria is a 57.5 kWh lithium-iron phosphate battery pack, and so far, three variants have been confirmed. Both the Elegant and Emerge models use a single 229 hp electric motor at the rear, allowing them to hit 100 km/h (62 mph) in 6.8 seconds.

For those wanting more punch, there’s the dual-motor Pioneer model. With all-wheel drive and a combined 400 hp, it cuts the sprint to 100 km/h down to just 3.9 seconds.

It’s unclear if the Mitsubishi version will retain the same specifications, but we suspect it will. A few months ago, I spotted a prototype of the Model B being tested in Melbourne, Australia, albeit without any Foxtron branding.

This is because the two companies are eyeing Australia as one of the car’s most important markets, and are believed to be fine-tuning the suspension for local road conditions.

The name of the Mitsubishi-branded EV hasn’t been confirmed, but recent trademark filings suggest a direction. According to Drive, the carmaker has secured rights in Australia for the names ‘ASX GT-e’ and ‘ASX VR-e’.

Golf Size

Dimensionally, the Bria measures 4,315 mm (169.8 inches) long, 1,885 mm (74.2 inches) wide, and 1,535 mm (60.4 inches) tall. That makes it slightly longer and wider than a Volkswagen Golf, and comparable in scale to the electric MG 4.

Considering this is Foxconn’s first production EV, the Bria makes a strong visual impression. It bears no resemblance to anything in Mitsubishi’s current stable, but that’s unlikely to be an issue. Mitsubishi has a long history with rebadged models, so it’d probably be happy to sell the Bria as is.

Mercedes-Benz’s decision to offer an all-electric version of the G-Class hasn’t come without controversy. After all, one of the most iconic and traditionally rugged off-roaders can now glide along in complete silence.

Still, fresh off a strong 2025 for the G-Wagen lineup in America, Mercedes is moving ahead with its electrification strategy, now aiming to boost interest in the G580 with EQ Technology.

Read: Mercedes’ Electric G Flops So Hard It Could Change What Comes Next

The electric G-Class is currently offered with a $10,000 Incentive Bonus, now available whether you lease or buy the vehicle outright. Previously, this discount was capped at $5,000 and applied only to lease agreements, according to Cars Direct.

Whether that’s enough to sway potential buyers is another matter entirely.

The G580 starts at $164,550 including destination. However, as is often the case, finding one at base MSRP is nearly impossible. A quick search on Cars.com turned up 224 listings, with only a single example priced at MSRP. Most hovered between $180,000 and $190,000.

Even so, at base price, a $10,000 discount, while not insignificant, doesn’t sound like it will do much to tip the scales. It amounts to roughly 6 percent off, and for typical G-Class buyers, that might equate to a minor financial blip, not a reason to commit.

Sales Flop

Mercedes recently confirmed it delivered 49,700 G-Class vehicles globally last year, a 23 percent jump over the previous year and a new high-water mark for the model. What it didn’t share is how many of those were the electric G580 and how many still carried internal combustion.

However, reports from early last year described the G580 as a sales “flop,” noting that just 1,450 examples had been sold in Europe as of April 2025, and only 58 in China. It was also claimed that Mercedes had failed to sell a single example in the US, though that was never officially confirmed.

Porsche and boats have been flirting for a while. The German sports car brand already helped create a rapid electric speedboat with Austrian builder Frauscher. Now the partnership is back with a smaller boat called the 790 Spectre and a one-off, marine-inspired Macan concept to keep it company.

No, the Macan Turbo Concept Lago can’t jump from the road to water like a Gibbs Aquada or Amphicar 770. But it borrows some neat nautical design and trim ideas in the same way that the Frauscher’s boats have cribbed the Macan’s motors and battery pack. And it has some of the most stylish floor mats we’ve ever seen.

Related: Alfa’s Yacht-Winged Giulia Quadrifoglio Special Is Fast, Wild, And Already Sold Out

Porsche raided its Exclusive Manufaktur personalisation catalog and roped in experts from its Sonderwunsch “special wish” department to give the concept a distinctly salty vibe.

Darkteal Metallic paint, which originates from Porsche’s Paint to Sample programme, covers the outside while neat graphics tie the car to the matching boat. Even the keys wear the same color.

Swab the Floor Mats, Matey

Open the doors and the nautical theme gets stronger. Real wood inspired by boat decks lines the front and rear luggage compartments and the floor mats look ready for bare feet.

A compass replaces the usual dashboard stopwatch and the seat centers use marine grade fabric trimmed with Crayon leather. Green contrast stitching finishes the look and proves Porsche’s trim specialists can customise almost anything.

Frauscher 790 Spectre

The Concept Lago is just a one-off, unlike the new Frauscher 790 Spectre it’s designed to promote. Engineers built the 7,970 mm (313.8 inches) sports boat around the same 100 kWh battery and dual electric motor setup used in the Macan Turbo, though Porsche quotes 630 hp (639 PS / 470 kW) for the SUV and 536 hp (544 PS / 400 kW) for its sea-going counterpart.

The hull is new and lighter than before and the cockpit borrows plenty of Porsche style touches, including the steering wheel and elements of the seat design. Buyers can personalise the boat with special paint and materials to mirror their car.

Orders for the 790 Spectre are open now, but the price is going to make a $112,700 Macan Turbo Electric look downright affordable. While neither Porsche or Frauscher has indicated an exact sticker, the fact that the earlier 850 Fantom Air cost around $600k tells us this one is for wealthy Porsche and boat lovers only.

Porsche

It appears you can add Mazda to the growing list of automakers that have delayed electric vehicles in the wake of lower than expected demand. According to reports out of Japan, the company’s first dedicated EV has been pushed back until at least 2029.

Details are still murky, but Autonews cites Nikkei and Nikkan Jidosha as saying that production has been delayed by at least two years. Instead, the company will reportedly turn its attention to more popular hybrids.

More: Mazda’s New EV Caught Testing In America

While a spokesperson said Mazda hasn’t officially announced anything, they didn’t exactly deny the reports either. Quite the opposite, as in a statement to Autonews, they said, “We continue to advance the technological development of our proprietary BEVs based on our multi-solution strategy, and will determine the timing of their introduction while carefully assessing regulatory trends in each country and changes in customer needs.”

This suggests launch plans are still up in the air and could slip beyond 2027.

Test Mule Raises Questions

Baldauf

This is an interesting development as spy photographers snapped a mule undergoing testing in California late last year. The model wore a heavily modified CX-70 or CX-90 body and featured a fully enclosed grille as well as blocked off air curtains. The vehicle was said to be roughly the same size as the CX-50, but narrower than the body suggested.

Little is known about the EV at this point, but it’s slated to ride on the Skyactiv EV Scalable Architecture. The platform was originally announced in 2021 and was supposed to be introduced last year.

That obviously didn’t happen and it appears plans to introduce several vehicles on the architecture between 2025 and 2030 are also in jeopardy. These were set to include “various vehicle sizes and body types.”

However, the situation has changed significantly in the past few years. In the United States alone, the Trump administration has enacted steep new tariffs and eliminated the clean vehicle tax credit. The latter has caused a significant drop in EV sales and a rethink by many automakers.

Nevertheless, Mazda isn’t giving up on electric vehicles as the company recently introduced the CX-6e in Europe. It’s a Chinese collaboration with joint-venture partner Changan, and the model has a lot in common with the Deepal S07.

While Lucid has carved out a niche in the premium EV market with impressive engineering and design, even the most advanced models aren’t immune to real-world ownership realities. Software hiccups aside, the Lucid Air remains a strong contender, but like many luxury electric vehicles, it faces steep depreciation, a fact this particular seller encountered firsthand.

Read: Spilled Water Bricks Lucid, Repair Costs As Much As A Used Corolla

This 2025 Air, finished in Fathom Blue Metallic, is the Grand Touring variant. It sits near the top of Lucid’s lineup, just below the range-topping Air Sapphire, which plays in near-hypercar territory when it comes to straight-line performance.

A look at the window sticker shows a base price of $110,900 before destination charges. This example came well-optioned, including the $5,500 Tahoe extended leather package, Lucid’s $2,500 DreamDrive Pro driver assistance system, and $3,750 power front seats equipped with massage and ventilation.

What’s The Price Of Premium?

With these extras and a $1,500 delivery fee, the total MSRP climbed to $124,950 before taxes. The seller acquired the car less than a year ago, making the next part of the story particularly painful.

According to the Cars & Bids listing, the original owner bought it in February of last year and drove it just 6,500 miles (10,500 km) before putting it up for sale a few days ago. Despite being in near-new condition, it sold for only $75,500. That’s a brutal financial loss of $49,450. And that’s before taxes and other expenses like registration fees. It’s a sharp reminder of how rapidly luxury EVs can shed value.

Cars & Bids

The good news, if you’re the buyer, is that much of that initial depreciation has likely already happened. Although the car will continue to lose value over time, as most do, the worst of the drop may be behind it. Some 2022 Air Grand Touring models are now changing hands for prices in the mid-$50,000 range, so this one may continue along that curve.

Read: Popular YouTuber Got Critical With Lucid, And Things Didn’t End With A Shrug

Still, for a long-term owner, there’s reason to feel good about the purchase. They’ve essentially sidestepped nearly $50,000 in immediate depreciation, while gaining access to one of the most refined and tech-laden luxury sedans available.

The Air Sapphire has attracted most of the buzz over the past couple of years, but the Grand Touring remains extraordinarily impressive. It has a pair of electric motors with a combined 819 hp, allowing it to hit 60 mph (96 km/h) in around 3 seconds. In addition, it has an exceptional driving range of 512 miles (824 km), among the highest of any current EV in the market.

Cars & Bids

The hugely important Chinese car market is continuing to prove challenging for foreign automakers. Chinese manufacturers are maintaining their dominance on the home front, as the world’s largest car market continues to move towards electric and plug-in hybrid vehicles.

Domestic demand for these so-called New Energy Vehicles rose by 18 percent in 2025. This contrasts with the situation in Europe and the US, where the slowdown in EV adoption steals the headlines.

Tech Wars

One reason why imported cars are falling out of favor is the ability of local carmakers to adapt and update to changing technologies on the ground at a much faster pace. As brands such as BYD, Geely, and Changan continue to battle each other on tech features, they’re leaving Western manufacturers in the dust.

Read: EV Makers Just Got A New Problem In China, And It Starts In 2026

The ability for Chinese automakers to not only develop and implement new tech, but also integrate seamlessly with other existing Chinese tech (such as the WeChat and AliPay “super apps”) is something that consumers value highly.

According to Xiao Feng, speaking to the Wall Street Journal, this could mean that foreign car makers could mostly be pushed out of the Chinese car market by 2030. Save for some big players, such as Tesla, Toyota, and VW, it’ll be hard for imports to compete on both features and EV tech.

Passenger Car Slowdown

Although the adoption of EVs and plug-in hybrids is moving forward rapidly, last year China’s passenger car market grew at its slowest pace in three years, scoring a 4 percent increase and a total of 23.7 million vehicles.

Meanwhile, EV sales have been bolstered by local subsidies, with 2025 incentives being up to $2,900 when consumers traded in their old car for an EV or plug-in hybrid. Some 11.5 million car sales were made through the trade-in incentive, although in December, new car sales reportedly fell by 14%, due to some localities “running out” of their budgets for the incentives.

See Also: BMW And Porsche Just Lost China’s Luxury Market To A $100,000 Newcomer

It’s reported that Beijing will be looking at curtailing subsidies in 2026. Meanwhile, fierce local competition continues to affect both local and foreign brands, with many competitors seemingly locked into a price war.

One study, conducted by the China Automobile Dealers Association, claims that only 30 percent of dealers remained profitable in the first half of 2025, with 75 percent of those surveyed admitting they sold at least a few cars below cost.

Foreign Car Makers Restructure

Last year saw the departure of Mitsubishi from the Chinese market, as the company opted to end all manufacturing and sales, while JLR also underwent a significant scaleback in its product offerings. VW stopped making cars at its Nanjing plant.

Even Tesla, arguably the strongest non-local player, saw sales drop by around 5 percent while it lost the world’s best-selling EV tag to BYD.

However, with China being the largest market, many others are choosing to restructure rather than abandon ship completely. Toyota is building a new Lexus EV plant in Shanghai, VW is ready to launch a whole range of China-specific models, and GM will offer all its products with either an EV or a plug-in hybrid option.

Not long ago, Germany made a sharp U-turn on electric vehicle incentives, pulling the plug on subsidies just as local automakers were counting on them to shore up faltering demand. Unsurprisingly, sales tanked. Now, the government is reversing course once again, preparing to reinstate a new subsidy program aimed at reviving interest in EVs.

Read: Mercedes Keeps Its Most Affordable Model Alive, But It Won’t Be German Soon

The upcoming scheme will offer buyers between €1,500 ($1,742) and €6,000 ($7,000) in incentives, depending on the vehicle, household income, and family size. The total budget stands at €3 billion ($3.48 billion), enough to support around 800,000 vehicles under the plan.

No Barriers for Foreign EVs

Unlike some neighboring countries, Germany’s EV subsidy will be open to all manufacturers, including Chinese brands. According to Bloomberg, the government has confirmed it will not impose origin-based restrictions, with Environment Minister Carsten Schneider saying there’s no evidence of a flood of Chinese imports and that local brands are strong enough to compete.

Germany’s subsidies will be offered through 2029, and applications can be submitted retroactively to January 1, 2026. An online portal is scheduled to be launched in May to handle applications.

The program was first announced last October and has been designed to mostly benefit low- and middle-income households. Final terms are expected to be revealed later in the year.

A Reboot for EV Incentives

Germany previously ditched its EV incentives in late 2023 due to budgetary issues. This immediately triggered a 27 percent decline in EV sales in 2024.

There’s now a new government in power who are clearly eager to see the sales of electric cars rebound, even though the European Union did recently give car manufacturers a major reprieve in reversing the proposed 2035 ban on new cars with internal combustion engines.

In late last year, it was reported that the new incentive scheme would only provide subsidies for new EVs costing less than €45,000 ($52,300), but it’s unclear whether this cap has been confirmed. Additionally, it had been reported that only individuals earning less than €45,000 ($52,300) would be eligible.

Germany’s earlier EV incentive program, which ran from 2016 to 2023, distributed roughly €10 billion ($11.6 billion) in subsidies to buyers.

What Else Comes With the Package?

Alongside the new funding package, the program comes with additional efforts to support EV uptake, including a tax break for electric vehicles extended through 2035. Estimated to cost around €600 million (about $700 million) in forgone revenue, the move reflects the coalition’s backing for a slower, more flexible transition, even as the future of combustion engine bans remains under debate.

Saying the automotive world is in a bit of limbo may be an understatement. On one hand, you have the world’s largest market, China, accepting EVs and plug-in hybrids in even greater numbers than ever before. Meanwhile, in Europe, manufacturers are pulling back on their EV manifestos as the European Union provides some respite in the face of slower-than-predicted adoption.

Toyota, by contrast, has always been pro-ICE. For years, the company has questioned its competitors and governments, who have been advocating exclusively for electric vehicles. And while the company has shown off various plans for EVs, they’ve maintained a more balanced approach.

Read: Toyota GR GT Looks Like A Batmobile And Hits Like A Supercar

Now, it may be clear that Toyota wasn’t going to say goodbye to combustion without a fight, but we imagine not many would have predicted the unveiling of the GR GT: a production-slated halo supercar with a ferocious twin-turbocharged 4.0-liter hybridized V8 engine.

The Fight for Identity

In an era of tightening emissions regulations and downsized powertrains, the decision to green-light a V8 may seem almost rebellious. But for Toyota, the GR GT isn’t about volume or compliance alone. It’s about identity.

Nikkei Asia notes that the GR GT has been built without the assistance of Yamaha, unlike its spiritual forefathers, the 2000GT and Lexus LFA. “Automobiles, as an industrial product, are in danger of becoming commoditized,” says Toyota Chairman Akio Toyoda. “The engine still has a role to play,” underscoring the importance of the in-house powerplant.

The reality is that Toyota’s focus on keeping engines around will permeate throughout its lineup for the foreseeable future. In June 2025, Toyota convened suppliers at an internal combustion engine rally, where executives outlined plans to develop new engines, including high-output units, while maintaining overall engine production volumes through 2030.

It was a clear signal that Toyota sees a long runway for combustion, even as the market fragments.

Satisfying the Giants: US vs China

However, Toyota is still hedging its bets with EVs, especially when it comes to China. Over there, the car-buying population continues to march towards an all-electric future.

Toyota, like all foreign manufacturers, is feeling the pinch against local rivals. At a supplier event in Shanghai last summer, a Toyota executive drew rare applause by declaring, “In China, we will focus not on cars for the global market, but on cars made specifically for China.”

More: Toyota’s New Flagship bZ7 Sedan Is Here But Not For Us

He added pointedly that if Japan’s headquarters hesitated on investment, he would “explain things to them directly.”

That shift is already visible in the product lineup. The bZ3X electric SUV, launched in March 2025 through GAC Toyota, was co-developed with Guangzhou Automobile Group and uses cost-effective lithium iron phosphate batteries. Priced from 109,800 yuan or about $15,300, it surpassed 10,000 units in monthly sales by November. A bZ7 electric sedan is set to follow.

Hybrid Momentum in America

Back in the US, where EV adoption is not as clear-cut, Toyota is investing in hybrid production. The move is driven by strong demand as hybrids accounted for roughly 13 percent of new-vehicle sales in the U.S. during the third quarter of 2025.

Toyota opened its new battery plant in North Carolina on November 12. Toyota Motor North America President Tetsuo Ogawa called it “a pivotal moment in our company’s history.”

On the same day, Toyota announced plans to invest up to $10 billion over five years to expand U.S. production of hybrids and related components, boosting output at five American plants and reducing reliance on Japanese imports.

Is Betting on Everything the Smartest Bet?

Of course, building cars powered by everything from V8 hybrids to LFP-battery EVs is expensive. Toyota spent ¥1.3 trillion on R&D in the year ending March 2025, which is roughly on par with BYD, and well ahead of many rivals.

To manage the burden, Toyota has begun leaning more openly into partnerships, including work with NTT on AI-based crash prevention and a collaboration with Waymo on autonomous driving.

In a market increasingly obsessed with picking a single technological winner, Toyota’s refusal to do so may look risky. But if the global auto future really is plural rather than uniform, betting on engines, rather than shunning them, may yet prove to be the company’s most calculated move of all.

Volkswagen isn’t sitting still when it comes to electric cars, even if most of its lineup in the US has struggled to gain traction this year. The ID.4, one of only two VW models whose American sales actually increased in 2025, is getting more than a light polish.

Instead, it’s heading into a major refresh that reshapes it into what some within the company are already calling the “electric Tiguan.”

Related: Every VW Model Dropped In Sales, Except The Two You’d Never Expect

Our first spy shots show a crossover that’s recognizably an ID.4, but one that’s been carefully sharpened. The front end is squarer, clearly aligned with the upcoming ID Cross look.

SB-Medien

As you can see in our spy shots, the doors are new with proper pull handles, and the rear end has been subtly reworked with a concave rather than convex tailgate panel, plus a re-profiled D pillar.

It’s not a ground-up redesign, because there’s only so much you can change with a facelift. The underlying structure appears mostly identical, which makes sense for a mid cycle update.

However, the surfacing and proportions have been tweaked just enough to bring the ID.4 visually into sync with the new Tiguan and VW’s upcoming electric ID.Cross, which was unveiled in concept form last September, and goes on sale in Europe later in 2026.

Buttons Are Back

Inside is where the biggest changes may be felt day to day. Physical buttons and switches will feature prominently, including a real volume knob, alongside a new dashboard, better materials, and a revised user interface. We got our first glimpse of this direction in the official photos of the new ID. Polo’s interior (pictured above) earlier this month.

The software gets an upgrade too, with an improved AI-powered voice assistant, and the currently undersized digital gauge cluster will grow in size.

Powertrains and Batteries

Under the skin sits a revised MEB plus platform that should feature LFP battery chemistry for better efficiency and potentially more range, though it’ll still be stuck with 400-volt electrics.

Powertrains are expected to receive light updates rather than dramatic changes. But VW did, after all, only relatively recently dramatically improve the output of the base single-motor ID.4, which since 2024 produces 282 hp (210 kW / 286 PS). That represents an increase of 80 hp (60 kW / 82 PS) over the previous version.

This facelifted ID.4 is expected to arrive near the end of 2026, helping carry the model through to 2028. That’s when a fully new version is due, this time based on a true 800-volt platform. That is nearly sure to be badged ID.Tiguan, if VW hasn’t decided that this year’s facelift is extensive enough to justify that name change for the 2027 model year.

SH Proshots

The Mercedes EQ lineup has been an unmitigated disaster and a lack of demand forced the company to temporarily pause production to reduce swelling inventories. While assembly of the EQE, EQE SUV, EQS, and EQS SUV recently resumed, the automaker is already looking forward to a less blob-like future.

More: Mercedes’ New E-Class EQ Is Coming To Right The EQE’s Wrongs

That’s clear today as spy photographers have snapped the upcoming E-Class with EQ Technology. Terrible name aside, the EQE successor will fix the sins of the past with an all-new design that more closely resembles the ICE-powered model. As a result, it looks more like a sedan and less like a bar of Dove soap.

Caught undergoing testing in snowy conditions, the E-Class EQ is heavily disguised but will likely feature the brand’s new ‘iconic grille.’ The chrome-clad behemoth recently debuted on the GLC EV and will also be found on the upcoming C-Class EV. If its size didn’t draw enough attention, there’s an illuminated variant with 942 lights as well as a shining star.

The headlights and taillights are temporary units, but they’ll eventually be replaced by starry production components. We can also see an upward sweeping beltline and a greenhouse that echoes the one found on the C-Class EV. However, the E-Class is notable for having traditional door handles and mirrors that are mounted at the base of the A-pillar.

GLC EQ

Spy photographers haven’t gotten a good look inside, but the C-Class EQ follows in the footsteps of the CLA and appears to adopt a 10.25-inch digital instrument cluster, a 14-inch infotainment system, and a 14-inch front passenger display. However, the more upscale E-Class EQ could take a page from the GLC and sport a massive 39.1-inch screen.

Read: Mercedes-AMG Forced To Kill Some Of Its Loudest Cars Under New EU Rules

The model will ride on the MB.EA platform and have a lot in common with the GLC EV. This means we can expect a two-speed transmission, a roughly 94 kWh battery pack, and a dual-motor all-wheel drive system producing a combined output of 483 hp (360 kW / 489 PS) and 590 lb-ft (800 Nm) of torque.

SHproshots

This setup enables the GLC 400 4MATIC to accelerate from 0-62 mph (0-100 km/h) in 4.3 seconds, before hitting a top speed of 130 mph (210 km/h). The crossover also has a WLTP range of up to 444 miles (715 km).

Also: Mercedes Wants Baby G-Wagen To Win Buyers The Big One Never Could

When the battery is low, drivers will be thankful for the 800-volt electrical architecture and the 330 kW DC fast charging capability. It will enable the GLC to get up to 188 miles (303 km) of range in as little as 10 minutes.

SHproshots

Western brands have been struggling in China, but GM is the rare exception as the company and its joint ventures delivered nearly 1.9 million vehicles last year. That was up 2.3 percent compared to 2024 and this was largely driven by sales of New Energy Vehicles such as the Wuling Hong Guang MINI EV, which found over 435,000 takers.

More: China’s New Cadillac XT5 Will Make You Jealous We Don’t Get It Here

GM is looking for continued success with the new Wuling Xingguang 560, which is a mid-size crossover that will be offered with gas, plug-in hybrid, and electric powertrains. The company said surprisingly little about the model, but it features a slender grille that is flanked by sweptback headlights with X-shaped daytime running lights.

They’re joined by a powertrain-specific front end, which is enclosed on electrified models and open on the ICE-powered variant.

Moving further back, we can see plastic body cladding and an available contrasting roof. Other highlights include stylish wheels, a liftgate-mounted spoiler, and X-like taillights. The model also has a rear pillar and window treatment that closely recalls the Subaru Forester.

How Big Is It?

In terms of size, the Xingguang 560 measures 186.8 inches (4,745 mm) long, 72.8 inches (1,850 mm) wide, and 69.1 inches (1,755 mm) tall with a wheelbase that spans 110.6 inches (2,810 mm). To put those numbers into perspective, the model is 3.6 inches (91 mm) longer than the Chevrolet Equinox and has an extra 3.1 inches (79 mm) between the wheels.

The interior has a minimalist design with a digital instrument cluster and an infotainment system that reportedly measures 12.8 inches. They’re accompanied by a two-spoke steering wheel, distinctive air vents, and a center console that appears to have a dual wireless smartphone charger.

Wuling was coy on specifics, but said the crossover offers up to 68.7 cubic feet (1,945 liters) of cargo room when the second-row is folded flat. They added the model has more than 25 storage compartments, including one hidden beneath the rear seats.

Powertrain Options

On the performance front, the Xingguang 560 will be offered with a turbocharged 1.5-liter engine that produces 174 hp (130 kW / 177 PS) and 214 lb-ft (290 Nm) of torque. It can be paired to either a six-speed manual or a continuously variable transmission.

Customers can also opt for a plug-in hybrid, which offers a WLTC combined range of up to 684 miles (1,100 km). Wuling didn’t elaborate, but an earlier report from CarNewsChina said this variant has a 1.5-liter engine and an electric-only range of 78 miles (125 km).

Last but not least, there’s a fully electric variant that has a CLTC range of up to 311 miles (500 km). It’s said to have a 60 kWh battery pack as well as an electric motor developing 134 hp (100 kW / 136 PS).

How Much Does It Cost?

To help promote the model’s launch, Wuling is offering introductory pricing that ranges from $8,581 (¥59,800) to $13,746 (¥95,800). After this offer expires, pricing will apparently climb to $9,155 – $14,751 (¥63,800 – ¥102,800).

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.

Canada and China announced a major tariff shift today in Beijing, and while it’s sure to have some North American farmers whooping with joy, it might also result in the region’s auto workers punching walls in frustration.

In late 2024, Canada had imposed a 100 percent tariff on Chinese-made electric vehicles, following similar action by the United States. That effectively shut out Chinese EVs from the Canadian market and was meant to protect local industry. China retaliated with crushing tariffs on Canadian canola seed of 84 percent, which effectively bottlenecked an export industry worth billions of dollars.

Also: EU Could Scrap Chinese EV Tariffs, But Buyers Won’t Like What Comes Next

The new agreement reached by Canadian Prime Minister Mark Carney and Chinese President Xi Jinping rewrites that script. Canada will now allow up to 49,000 Chinese electric vehicles a year to be imported at a reduced tariff of around 6.1 percent, a massive drop from the previous 100 percent, and ease tariffs on steel and aluminium.

By the fifth year of the agreement, the EV import cap will rise to 70,000 units. “That’s a return to levels last seen in 2023, the last full year before the Canadian tariff actions,” Carney said.

Even so, the number remains relatively modest in the context of the overall market. Canadian consumers bought nearly 1.9 million vehicles last year, meaning Chinese EVs will still account for a small fraction, albeit a larger one when looking solely at electric vehicles. That said, we still don’t have the total EV sales figure for 2025.

Canola Tariffs Cut

China, for its part, will cut its canola seed duty to about 15 percent by March 1, significantly improving market access for Canadian farmers. The move is part of a broader effort to repair strained relations between the two nations and comes as the result of the first high-level visit by a Canadian prime minister to Beijing in nearly a decade.

But not everyone is thrilled. Some Canadian auto workers and industry observers worry that lower EV tariffs and an influx of affordable cars could increase competition in an already challenging market. And ahead of the final meeting Ontario Premier Doug Ford made clear he was against the lifting of tariffs.

Jobs Created, Not Lost

Carney, however, predicts the EV pact will result in “considerable” Chinese investment into Canada’s auto sector that will create jobs, Reuters reports, while helping it meet its climate goals.

“For Canada to build its own competitive EV sector, we will need to learn from innovative partners, access their supply chains, and increase local demand,” he said.

US President Donald Trump and his administration will certainly be dismayed at this latest news from Canada. But there will also be thousands of American soy bean farmers whose livelihoods have been trashed by tariffs that will be wishing Trump would make a similar deal.

BMW M will begin offering electric vehicles in 2027, and the upcoming i3 M sedan has already been teased. But it won’t arrive alone, as spy photographers have captured the brand’s first high-performance electric SUV, possibly called the iX3 M, undergoing cold-weather testing in northern Sweden.

More: BMW M’s iX3 Is Hiding Something Under Its Hood

Dressed in heavy camouflage, the prototype looks virtually identical to the standard model. However, we can see the crossover has been equipped with sizable wheels that are backed up by a high-performance braking system. The latter feature cross-drilled discs as well as blue calipers up front.

SHproshots

The production model will presumably have more changes including sportier bumpers and a lightly revised grille. We also wouldn’t be surprised to find a modified diffuser and plenty of M badging.

While there isn’t much to see outside, the interior pictures show the M variant will have a sport steering wheel that eschews vertical spokes. We can also see red and blue contrast stitching as well as dedicated M buttons that are covered by tape.

The rest of the cabin is largely hidden behind disguise, but there are heavily bolstered sport seats that have taped up M logos. Besides the special touches, we can expect a pillar-to-pillar Panoramic iDrive display as well as a 17.9-inch infotainment system.

SHproshots

BMW M has been coy on powertrain details, but they recently said their upcoming EVs will have four electric motors as well as a front axle that can be “completely decoupled” to deliver rear-wheel drive characteristics and efficiency. All of these models, including the i3 M sedan and the iX3 M SUV, will also have simulated gear shifts and a newly developed “soundscape.”

The motors will deliver precisely controlled power and torque to each individual wheel and they’ll be powered by a 100+ kWh battery pack, which has been “specifically adapted to meet the demands of high-performance vehicles.” The company also noted upcoming models will have a long range, highly efficient energy recuperation, 800-volt technology, and their new Heart of Joy driving dynamics system.

The big question is how much power to expect. Only BMW knows for sure, but speculation suggests they could be packing between 700 hp (522 kW / 710 PS) and 800 hp (597 kW / 811 PS).

SHproshots

The Rolls-Royce Cullinan burst onto the scene in 2018 and became a successful addition to the lineup. Now, almost ten years later, the company has begun work on a new flagship crossover.

Spied undergoing cold weather testing in Scandinavia, the redesigned model is heavily disguised but looks instantly recognizable. However, there’s a new front fascia with split lighting units and what appears to be a wider grille. We can also see a wide lower intake that echoes the one found on the Spectre.

More: Facelifted Rolls Royce Cullinan Arrives With Questionable Styling Changes

Moving further back, there’s a bulging hood and a pronounced shoulder line. They’re joined by an evolutionary greenhouse as well as new door handles that appear to be better integrated into the overall design.

The familiar styling continues out back, where there are new taillights with vertical elements. The model also has a new liftgate and a license plate recess that has been moved to the bumper. Speaking of which, there are new horizontal reflectors and no more exhaust cutouts.

Baldauf

There appears to be a good reason for this as spy photographers said the model is fully electric. Little is known about the crossover at this point, but the model could follow in the footsteps of the Spectre.

As you may recall, the electric coupe rides on the Architecture of Luxury and features a 102 kWh battery pack as well as a dual-motor all-wheel drive system with 577 hp (430kW / 584 PS) and  664 lb-ft (900Nm) of torque. This enables the Spectre to accelerate from 0-60 mph (0-96 km/h) in 4.4 seconds and have a WLTP range of 329 miles (530 km).

Customers can also upgrade to the Black Badge variant, which has an upgraded powertrain producing 650 hp (485 kW / 659 PS) and 793 lb-ft (1,075 Nm) of torque. Thanks to the extra oomph, 60 mph (96 km/h) comes in 4.1 seconds.

The crossover could use a larger battery than the coupe, but we likely won’t find out for awhile as a launch isn’t expected until 2028. That’s a ways off and it means Bentley will beat Rolls-Royce to the punch with an electric crossover of their own.

Baldauf