The Chinese government is stepping up efforts to end the price war among local car manufacturers following a sales decline in the first month of the year. In what is the government’s most drastic step yet, there will be a cap on how low automakers can price their vehicles.

Newly-released guidelines from the State Administration for Market Regulation explicitly ban companies from setting prices below the cost of production as part of their efforts to monopolize the market and squeeze out competition.

Read: China’s EV Boom Is Cooling, And The Big Names Are Feeling It

According to the China Automobile Dealers Association, the price war has caused up to 471 billion yuan ($68 billion) in lost output over the past three years. Market sales dipped by their fastest pace in almost two years in January, declining 19.5 percent year-on-year.

Sales fell by an even more considerable 36 percent from December 2025 to January, plummeting from 2.2 million units to 1.4 million, CTV News reports.

Some analysts predict that domestic demand for new cars in China will fall this year, with sales potentially dropping by up to 3 percent. However, Chinese car companies may offset this by exporting more vehicles to overseas markets. BYD, for example, aims to export 1.3 million battery-electric and plug-in hybrid vehicles this year, up from 1.05 million last year.

The Chinese market regulator has warned that companies that don’t comply with the new rules may face “significant legal risks,” although it didn’t reveal what actions could be taken.

Supplier Payment Cycles Slashed

This new ban on setting prices below the cost of production isn’t the only measure being taken to quell the price war. Tighter government oversight has led many major automakers to reduce their supplier payment cycles from an average of 300 days to under 60 days.

As reported by the South China Morning Post, many Chinese car brands have frequently extended payment cycles to keep cash reserves, enabling them to ramp up research and development. The new government oversight appears to be helping.

“The results showed government intervention worked, as the automotive groups feared they could face severe punishment if they failed to operate in compliance with the authorities’ requirements,” chief executive of the Shanghai Mingling Auto Service consultancy Chen Jinzhu said. “Without delayed payments to suppliers, they will not have sufficient cash on hand to sustain discount wars.”

Ford has never been shy about making big, attention-grabbing bets. Sometimes they pay off, sometimes they don’t. In early 2022, the company announced it was splitting its automaking operations into two distinct branches: Ford Blue, handling traditional combustion vehicles, and Ford Model e, dedicated to EVs. At the time, it sounded like a smart move, especially with EV demand climbing fast.

That optimism, however, hasn’t quite paid off. Fast forward four years, and Ford’s huge investments in EVs have come back to bite it. In its latest financial results, the automaker disclosed that the Model e division posted a staggering $4.48 billion loss in 2025. Worse, those losses are expected to continue mounting, even after canceling several planned EV projects.

Read: Ford Got The Loan And Built The EV Battery Plant. Now Everything’s Falling Apart

Earlier this week, Ford revealed its electric car business will likely lose between $4 billion and $4.5 billion this year, and will continue to lose money through at least 2027 and 2028.

Speaking on a conference call following the earnings report, Ford CFO Sherry House stated the company is not aiming for a breakeven point for the Model e brand until “around 2029.”

Tallying The Fallout

In the four years since the Model e division was established, Ford lost more than $16 billion. That’s an extraordinary amount of money, particularly when you consider that the only electric cars it currently sells in its home market are the Mustang Mach-E and E-Transit, following the early demise of the F-150 Lightning.

Combustion Still Carries The Load

According to The New York Times, Ford’s losses in electric vehicles were offset last year by stronger performance from its combustion-powered lineup and commercial vehicle sales. Those segments generated enough revenue to support an adjusted earnings total of $6.8 billion before interest and taxes. Ford expects those numbers to climb in 2026, projecting earnings between $8 billion and $10 billion.

Read: Farley Just Realized $55K EV Trucks Don’t Sell, After Ford Made Sure That’s All It Sold

One of the earliest signs of Ford backtracking on EVs came last year when it confirmed production of the F-150 Lightning had been halted indefinitely.

Still, there’s a sliver of hope for those holding out for an electrified truck. The next-generation F-150 Lightning is in the works and will feature a range-extending powertrain that combines electric drive with a combustion engine backup, offering over 700 miles of combined range.

You might have set a New Year’s resolution to slim down, but new-car prices made no such commitment. According to fresh industry data, prices just set another record for January, proving that handing over $50k for a virgin vehicle is basically normal now. But the number of people who think buying an EV is the normal thing to do has dropped dramatically.

More: A Third of Americans Are Priced Out Of New Cars, And It’s Getting Worse

The average transaction price in January reached $49,191, up nearly 2 percent from a year earlier and the highest ever recorded for the month, according to KBB. Although prices dipped slightly from December, Cox Automotive called the drop “seasonally normal,” explaining that the market usually “takes a breather” after year-end, when luxury vehicles make up a larger share of sales.

The average new-vehicle manufacturer’s suggested retail price (MSRP), commonly called “the asking price,” also kept climbing, now sitting at $51,288 and staying north of fifty grand for 10 straight months.

New-Vehicle Average Transaction Price

Last month’s pricing uptick came even as sales mix shifted away from year-end luxury volumes. “We hit a new January high even as prices naturally pulled back from December’s luxury-heavy finish,” said Erin Keating, executive analyst at Cox Automotive.

“Consumers are still finding plenty of options below the industry average, especially in core segments like best-selling compact SUVs, but the disappearance of true entry-level vehicles continues to lift the floor higher.”

Incentives Pull Back Hard

Incentives fell to about 6.5 percent of transaction prices, down from higher levels late last year, meaning buyers are shouldering the burden of those higher prices. Automakers are clearly in margin-protection mode, offering just enough in the way of deals to keep metal moving but not enough to feel generous.

Luxury models and big pickups got the juiciest offers, while compact and midsize cars were left mostly to fend for themselves.

Few Bargains Remain

Compact SUVs remain the value choice. With average prices around $36,000 and down 0.6 percent, they sit well below the industry average and continue to dominate sales. Meanwhile, true bargain basement cars are basically extinct. With the Mitsubishi Mirage gone and the recently axed Nissan Versa reduced to whatever stock is still hanging around, the US market has waved goodbye to the sub $20,000 new car.

At the other end of the spectrum, full-size pickups are still living large. Average prices in that segment remain comfortably above $70,000, and buyers are still lining up, with more than 150,000 big trucks finding homes last month.

January marked the fifth consecutive month where full-size pickups averaged over $70K, reinforcing their outsized role in propping up the market average. Subcompact cars, by contrast, struggle to attract more than a few thousand takers a month. Fewer than 4,000 were sold industry-wide last month.

EVs Shunned

Electric vehicle prices actually slipped to around $55,700, down 0.6 percent lower than a year ago, although Tesla’s fell 2.2 percent in the same period. Incentives for EVs also cooled sharply, dropping to 12.4 percent of ATP, down from 18.3 percent in December. Even at those reduced levels, they remain well above the industry average.

However, we wouldn’t be surprised if they are kicked back in to shore up demand, which has dropped alarmingly, according to the data.

KBB says only 66,000 EVs were sold in January, being down a fifth from January 2025, and you can bet the loss of tax credits from October played a big role. In fact, that total reflects a nearly 30 percent year-over-year drop and a 20 percent decline from December. Tesla accounted for about 60 percent of total EV sales.

Average transaction price by automaker

Average transaction price by brand

Average transaction price by segment

Data Cox Automotive/Kelley Blue Book

The Volkswagen Group has been doing some careful footwork lately, trying to stay ahead as Europe tightens the rules on electric cars coming in from China. Cupra boss Wayne Griffiths warned just over a year ago that the brand could be “wiped out” by new European Union tariffs on electric vehicles imported from China.

But now, the VW Group might get a special lane through Europe’s new tariffs on Chinese-built EVs, and that possibility isn’t going unnoticed in Beijing.

More: Ford May Fill Its Factory With Chinese EVs So They Can Dodge Tariffs

Here’s the deal in simple terms. The EU slapped tariffs on electric cars made in China, arguing they benefit from heavy state support. But there is a loophole. Instead of paying those extra duties, a carmaker can agree to sell a model at a minimum price.

Volkswagen looks set to use that option for the Cupra Tavascan, which is built in China, Germany’s Handelsblatt reports. If Brussels signs off, VW can ship it into Europe without being stung by punitive 20.7 percent tariffs, as long as it sticks to the agreed pricing rules. Officially, this is all perfectly above board and part of existing procedures.

Not A U-Turn

The European Commission’s diplomats in Beijing say these kinds of allowances do not constitute a U-turn on its Chinese vehicle policy, a complaint leveled by some critics. Beijing, meanwhile, is being outwardly positive about the rumored EU concessions.

But behind closed doors, the Chinese worry that Volkswagen might be getting friendlier treatment than other manufacturers because it’s a European brand. China had pushed for an industry-wide solution, but now seems to be accepting smaller, case-by-case deals, realizing that letting individual brands cut their own deals may be better than endless stalemate.

Long Process

Each application for a minimum pricing deal can take well over a year and must be reportedly handled on a car-by-car basis, the report says. Industry watchers doubt every Chinese brand will rush in, especially those already making healthy margins even with tariffs in place, but VW evidently believes it’s worth the admin in the Tavascan’s case.

The Tavascan is Cupra’s sportier take on the VW ID.5, a 182.8-inch (4,644 mm) electric crossover built around the MEB platform and offering a mix of single and dual-motor powertrains with up to 353 miles (568 km) of electric range.

Cupra

A new trade agreement has cracked the door open for electric vehicles from China to officially re-enter the Canadian market. In exchange, the People’s Republic is easing up on tariffs for Canadian agricultural exports, especially canola. Yes, your future EV might be indirectly powered by salad oil diplomacy.

Cheap, tech-packed, and improving at a scary pace, Chinese EVs are terrifying North American automakers and fascinating savvy car buyers, and they haven’t even landed yet, kept out by tariffs and political caution.

Related: China Is Ready To Start Building Cars In Canada

This new agreement changes the vibe. Canada gets more affordable EV options because the tariff rate is being cut from 100 percent to 6.1 percent.

The initial annual import cap is set at 49,000 vehicles, or one third of the car market, but could grow to 70,000 annually five years from now. And crucially, around half of the volume is expected to cost less than $35k CAD ($25k).

Compact Contenders and Budget Picks

But what would you buy? If price is king, the tiny BYD Seagull, sold in some markets as the Dolphin Surf, could be the ultimate city runabout. Sure, it looks about the size of a carry on suitcase with headlights, and Canadian winters are not exactly minicar friendly.

QOTD: What Car Repair Made You Wonder If Engineers Ever Touch The Cars They Design?

However, if the goal is getting more people into affordable EVs, this little hatch and its bigger Dolphin brother could be game changers for urban commuters.

Sedan fans looking for some style, will be hoping Xpeng’s P7+ (seen above) gets an invite, but if you’re determined to blow past that $35k budget you’ve surely got to be rooting for the Xiaomi SU7 sedan and YU7 SUV.

These are the cars that make traditional brands nervous and car nerds very curious. Ford CEO Jim Farley daily-drove an SU7 specially imported for him and his team in 2024 and described it as “fantastic,” telling an interviewer “I don’t want to give it up.”

Another possibility? Western brands already building China-only models, like Mazda’s EZ-6 sedan that’s priced from around $20,000 in China, the Toyota bZ7 sedan, or Nissan’s NX8 crossover. If the import gate opens wide enough, these could sneak through too.

Answers Needed

Of course, there will be questions about service networks, long term reliability, and how these brands fit into Canada’s market. But purely from a car geek perspective, the idea of suddenly having access to this whole new wave of EVs is kind of exciting.

So Canadians, if these cars start showing up in showrooms, which one are you signing for? And if you are reading from elsewhere, play along. If you did live in Canada, what Chinese EV would be on your driveway?

It’s a new year, and for Porsche, it begins with a leadership shakeup that might reshape more than just boardroom priorities. The brand has a new CEO, Michael Leiters, and within days of stepping in, he’s reportedly reconsidering the future of the all-electric 718 Boxster and Cayman.

That would be a huge reversal of course for the automaker, but here’s the real kicker: new reports suggest the unceremonious end of Audi’s new Concept C sports car before it ever reaches production.

Read: Porsche’s New CEO Might Kill The Cayman, Boxster EVs Before They Even Launch

Leiters has reportedly begun a sweeping review of Porsche’s operations as sales slump in China and profit margins took a big hit. One of the biggest question marks is the electric 718 program, which has been plagued by delays, ballooning costs, and battery supply issues following the bankruptcy of Swedish cell supplier Northvolt.

Electric Sports Cars in Limbo

Insiders told German publication Handelsblatt that the battery issue has become particularly thorny, and finding a viable replacement would come with significant cost increases. Some within Porsche lay blame at the feet of former CEO Oliver Blume, saying he let the program’s problems drag on for too long.

More: Porsche Posts Its Biggest Drop In Sixteen Years

According to sources cited by Bloomberg, Porsche is now actively debating whether continuing development of the electric Cayman and Boxster even makes financial sense.

Audi CEO Gernot Döllner has tied much of his turnaround strategy to a new halo model known internally as Concept C and rumored to revive the TT nameplate and centering much of its future design around it. And the trouble is that it’s engineered around the same Porsche-developed EV platform intended for the electric 718.

Can Audi Go It Alone?

The shared architecture was supposed to deliver cost savings and accelerate development. Without it, Audi may be forced to either shelve the Concept C entirely or buy and finish the platform independently.

Insiders told the German publication indicate that such a move could cost Audi a nine-figure sum. There’s no telling how long it would take Audi to sort out the development and get a production car ready to roll. Help isn’t coming from any other direction, either.

Volkswagen Group’s next-generation SSP platform, which will underpin most future EVs across its brands, isn’t expected to be ready before mid-2028. All of this is going on as Porsche is struggling to manage shifting industry sands. Sales of the Taycan have fallen off a cliff in China, and tariffs are making things a lot harder in the U.S. as well.

Projections for China, once Porsche’s biggest growth engine, have been cut from 100,000 units to just 30,000 to 40,000 in 2026, with the brand recently deciding to shut down more than a third of its dealerships in the country.

More: The Concept C Is So Close To Production Audi Got It Street Legal

Audi, for its part, publicly showcased the Concept C in Milan last September during a high-profile launch event complete with celebrity appearances. At that event, Döllner described it as “the first visible evidence of Audi’s transformation as a company.” He emphasized that the model marks a break from the brand’s past design language and lays the groundwork for what comes next.

Concept C is Key to Audi’s Lineup

That foundation isn’t limited to design either. The Concept C’s tech platform is intended to underpin Audi’s future lineup. Originally, the sports car was scheduled to launch in 2027.

The big question now is whether Döllner will stick with Leiters’ cost-cutting approach or push ahead with Concept C, even if it means spending hundreds of millions to take over and finish the platform on Audi’s own terms by 2027.

For now, both companies are staying quiet. Porsche says no final decisions have been made, while Audi declined to comment on the Concept C’s future.

After months of spy shots and speculation, BMW’s all-new electric i3 is officially leaving the theoretical stage. The brand has begun pre-series production at its Munich plant, which means the future 3-Series EV is no longer just a prototype trying to evade Nürburgring photographers.

BMW released official images of camouflaged near-series cars to mark the milestone, confirming that production-spec hardware is now running through the factory. According to BMW, these early cars are built using full production processes, from the press shop to final assembly, to stress-test logistics, equipment, and workflows before series production begins in the second half of 2026.

Related: New i3 And 3-Series Reveal BMW’s Most Striking Split Yet

This is a bigger deal than it sounds. Until now, early i3s were assembled partly at BMW’s pilot plant near its Research and Innovation Centre. With Munich’s new body shop, paint shop, and assembly areas now complete, the i3 finally goes through every production step under one roof, just like a real car should.

The timing fits perfectly with what we’ve seen on the road. Spy shots have shown the electric i3 and the next combustion 3-Series testing side by side, wearing similar Neue Klasse styling but hiding very different bones underneath.

The i3 rides on BMW’s dedicated Neue Klasse EV platform first seen on the 2026 iX3 SUV, while the gas-powered 3-Series sticks with an updated version of today’s CLAR architecture.

Spot the EV

But you won’t need to get them on a ramp to tell them apart, you’ll just have to look closely. The electric i3 has a flatter roofline, different door and window shapes, and even a relocated charging port compared to the fuel door on the ICE model. Inside, though, both will share a futuristic cabin, including a freestanding display and BMW’s pillar-to-pillar Panoramic iDrive screen.

iX3 Powertrain

Powertrain details remain unofficial, but based on what we already know about the iX3, expectations are sky high. The i3 50 xDrive is rumored to deliver around 463 hp (469 PS / 345 kW) and an EPA range that should exceed 400 miles (644 km), backed by a massive battery and ultra-fast DC charging.

An entry-level rear-wheel drive version will follow, with a hotter, heavier, M3 EV also confirmed.

BMW says employee training is now shifting from virtual reality to hands-on work with real machinery, which tells us the launch clock is ticking. The camouflage may still be on, but the electric i3 has clearly entered its final dress rehearsal and the full disguise-free show starts later this year with first deliveries coming in early 2027.

BMW

Just two weeks after announcing a major trade deal with China that sharply reduced tariffs on EV imports, Canada is exploring another pivotal agreement, this time with South Korea, that could open the door to more car production on Canadian soil.

Although the two countries have had a free trade agreement since 2015, removing tariffs on most goods, this new Memorandum of Understanding (MoU) points to a growing interest in deeper cooperation.

Both countries are responding to the unpredictability of U.S. trade policy under the Trump administration by diversifying their economic alliances. Still, for all the optics, neither has the capacity to replace the United States as a primary economic pillar.

More: Trump Hits Korea With New Tariffs, Hyundai And Kia Are About To Pay The Price

The current priority is to strengthen South Korea’s automotive presence in Canada. That could include domestic manufacturing of Korean-branded vehicles as well as increased production of electric vehicle components and battery technologies.

“This agreement will grow our auto sector, create good jobs and reinforce Canada’s position as a global leader in future-ready vehicle manufacturing,” said Industry Minister Mélanie Joly in a statement on Thursday.

Ties Between Auto and Defence

Canada appears to be courting major Korean automakers such as Hyundai, especially in light of South Korea’s bid to replace Canada’s current submarine fleet.

According to CTV News, both Hyundai and defence contractor Hanwha are involved in a proposal to build and maintain 12 submarines for the Royal Canadian Navy. If selected, the deal could be worth up to $100 billion over the next 30 to 40 years.

More: 1,200 Canadians To Lose Their Jobs After GM Moves Trucks Back To The US

Hanwha, a sprawling South Korean industrial group, has already laid groundwork by signing five separate MoUs with Canadian companies to incorporate their technologies and products into its submarine offerings. Among those agreements is a $275 million commitment toward a new structural steel beam mill in Ontario.

South Korea’s Growing Footprint in Canada’s Auto Market

In 2024, South Korean vehicles made up 12 percent of all cars sold in Canada, amounting to 228,257 units. In a statement, the Canadian government emphasized its aim to strengthen the domestic battery supply chain by encouraging investment and collaboration in battery manufacturing, materials processing, and the refinement, processing, and recycling of Canadian critical minerals.

Read: China Is Ready To Start Building Cars In Canada

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, believes the timing aligns well for Canada to boost its domestic auto sector by leveraging upcoming defence investments.

“Today the business case is there to build a plant here in Canada, perhaps making electric vehicles… and to build where they sell,” he said. “Canada is interested in buying submarines and there are two healthy bidders. And both of those healthy bidders have automakers that sell a lot of cars here and sell batteries here.”

Tesla is quietly switching off two of the cars that helped kickstart the modern EV revolution. The Model S sedan and Model X SUV are heading for retirement as the company steers away from cars and toward humanoid robots instead.

CEO Elon Musk made the announcement on an earnings call on Wednesday, explaining that S and X production would end in California next quarter, and the Fremont plant would be repurposed to build Optimus robots.

Related: Worker Says Tesla Robot Knocked Him Out, Now He’s Knocking For $51 Million

“It’s time to bring the Model S and X programs to an honorable discharge because we’re really moving into a future that is based on autonomy,” Musk told investors.

“We’ll obviously continue to support S and X programs for as long as people have the vehicles, but we’re going to take the production space in our Fremont factory and convert that into an Optimus factory with the long term goal of having 1 million units a year.”

Game changer

It feels strange to say goodbye to the Model S, and Musk himself conceded the news was “slightly sad.” When it launched back in 2012, it rewrote the rulebook. Here was an electric car that was not a compromise box on wheels but a sleek, luxury sedan with Aston Martin vibes that could outrun a BMW M5 – and later, supercars – in a straight line. Alongside the Nissan Leaf, it helped drag EVs into the mainstream.

The Model X followed with its dramatic falcon wing doors and family friendly space, though it never quite matched the S for cultural impact. Still, both became rolling symbols of Tesla’s rise from scrappy startup to industry disruptor.

Replacements Overdue

The problem is time waits for no car, especially in the EV world. Sales numbers told the story. The Model 3 and Model Y became Tesla’s volume heroes, while S and X faded into niche status. While Tesla refreshed the S and X over the years, it never gave us all-new versions even as the threat from Western and Chinese rivals grew stronger.

Now, rather then reboot them, Tesla has decided to pivot to something different altogether, something with the potential to make even more money, and have an even bigger impact than the S did a decade ago.

Canada’s recent trade deal with China was bound to cause controversy. The agreement slashes tariffs on Chinese EVs from 100 percent down to just 6.1 percent, prompting U.S. President Donald Trump to threaten 100 percent tariffs on Canada if the deal proceeds. Still, China insists the arrangement is meant to benefit both countries and isn’t a zero-sum game.

Under the new deal, up to 49,000 EVs from China can be imported to Canada at a reduced 6.1 percent tariff rate, though at least half of them must cost $35,000 or less by 2030.

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

Unifor labor union president Lana Payne argues the deal opens the door for China to quickly capture critical market share. Ontario Premier Doug Ford has voiced similar concerns, warning that Canada could be inundated with low-cost EVs, without any firm commitment from China to invest in the local economy.

Beijing Signals Willingness to Build in Canada

Despite those concerns, Chinese Ambassador to Canada Wang Di says China’s fast-growing automakers are being urged to invest directly in Canada and produce vehicles domestically.

“All these projects will be beneficial to the development of the Canadian EV industry, and will be helpful for job growth in Canada, and will help Canadian consumers to be able to buy higher quality and more affordable cars,” Wang told CTV News. “The character of China-Canada practical co-operation is complementarity and mutual benefit.”

“China encourages and supports Chinese companies to make investments and start-up companies here in Canada, on the basis of the market rules,” he continued. “At the same time, we hope that the Canadian side will provide a fair, non-discriminatory, and predictable business environment for the Chinese companies that come here.”

According to Wang, that is what Beijing ultimately wants to see, if companies choose to take up the opportunity.

“If Chinese companies will come to Canada to work with Canadian partners for investment, for opening factories or for joint ventures, all of these projects will be win-win,” he said.

Is This a Message to Washington?

Perhaps in a thinly veiled swipe at the Trump administration, Wang added that “unlike some other countries, China will not only take into consideration of its selfish interest, we don’t want ‘only we win and others lose.’”

The head of the Canada-China Energy and Environment Forum, Wenran Jiang, would like to see Canadian juggernaut Magna International partner with a Chinese car manufacturer to build EVs in Canada. Recently, it was confirmed that Magna would partner with GAC to build the Aion V, but it’ll be built at the parts giant’s factory in Graz, Austria.

“If they can do that, we can do it certainly here in Ontario,” Jiang said, adding that such cooperation could help bridge regional divides over China policy. “We could do probably better if we leverage our regional advantages and work together as a team.”

India has long guarded its domestic car industry with near-impenetrable tariffs, making foreign vehicles a rare sight on its roads unless built locally. That’s about to change.The country is now getting ready to lower those duties on European Union cars, dropping them from a steep 110 percent to 40 percent.

Final terms of the trade agreement between India and the EU will be outlined later this week, but the current proposal outlines that tariffs on EU-made combustion-engine cars will fall to 40 percent for up to 200,000 units annually. Over time, that figure is expected to drop even further, eventually settling at 10 percent.

Read: India’s New Renault Duster Looks Like A Rich Man’s Dacia Duster

In order to protect local firms like Mahinda & Mahindra as well as Tata Motors, battery-electric vehicles would be excluded from the tariff cuts for the first five years. After that, European-made BEVs will also qualify for the reduced tariff structure.

Only cars priced above €15,000 (roughly $17,700) would be eligible for the reduction, a threshold designed to limit direct competition with mass-market offerings from firms such as Maruti Suzuki. These models dominate India’s affordable car segment and are critical to local industry stability.

According to Reuters, the deal is still under negotiation, with finer details yet to be finalized. Certain provisions remain subject to revision before the full announcement is made.

A Massive Market, Ripe for Growth

India now ranks as the third-largest new car market in the world, trailing only the United States and China. Yet European brands currently hold less than a 4 percent share of annual sales, positioning India as a key target for future expansion. Around 4.4 million new vehicles were sold in the country last year, with forecasts suggesting that number could climb to 6 million by 2030.

While the trade pact is expected to give EU carmakers a clearer path into the Indian market, it could also make things easier for Indian textile and jewellery exports. Those goods currently face US tariffs as high as 50 percent, and access to a new market could help take some pressure off.

Just days after Canada and China finalized a trade agreement slashing tariffs on Chinese electric vehicles from 100 percent to 6.1 percent, Ontario Premier Doug Ford has gone on the offensive.

Warning that the move could deliver a serious blow to Canada’s domestic auto industry, Ford is urging Canadians to steer clear of Chinese EVs altogether and “boycott” them, arguing the deal risks local jobs and undermines the country’s manufacturing base.

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

Ford didn’t wait for the details to land before voicing his concerns. Long before the tariff change was confirmed, he was already firmly against any auto-related trade agreement with China. According to the Ontario Premier, Prime Minister Mark Carney pushed the deal through without proper consultation.

Ford Sounds the Alarm on Local Jobs

“Maybe a few people might buy them, and I just discourage anyone from buying a Chinese vehicle,” Ford said at a press conference.

“But if they decide to do that, at what cost is it? Is it at the cost of your neighbor down the street that’s working in the auto sector that he’s not going to have, or she’s not going to have a job? Boycott the Chinese EV vehicles. Support companies that are building vehicles here. This is a team Canada approach. We gotta stick together.”

Who Really Benefits From the Deal

In announcing the dramatic tariff reduction, Carney stated that several Chinese carmakers have shown interest in building affordable electric vehicles on Canadian soil. Under the new deal, 49,000 EVs from China can be imported to Canada at the lower 6.1 percent tariff. Although Carney would welcome Chinese brands building cars locally, Ford isn’t convinced by the idea.

“The numbers just don’t add up,” he said. “Even if they do start assembling, how about the supply chain? They come, and they assemble, but they bring all Chinese parts in; that means nothing. We want to make sure we produce Canadian cars by Canadians, with the R and D and the specs and everything, and the steel, and the aluminum from Canada. It’s as simple as that.”

Are EV Incentives Needed?

Ontario Green Party Leader Mike Schreiner, speaking to CTV News, said the province should be looking at practical steps to build demand for Canadian-made EVs instead of clearing the way for imports.

“The federal government’s deal with China threatens Ontario’s automotive industry,” he claimed. “This is even more reason for the premier to take bold action to bring forward a complete plan to protect Ontario workers by going all-in on incentives to create demand for Ontario-made EVs.”

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.

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.

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.

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.”

Uncertainty with transportation funding, policies and federal changes can make the future seem foreboding for the student transportation industry. Security consultant Bret Brooks plans to outline ways to manage stress without being overwhelmed by today’s challenges.

The opening general session “How to Care Less Without Being Careless: Modern Stress Management,” is scheduled for Friday, March 27 at STN EXPO East. Brooks will explain the “Law of Reversed Effort” that reveals the impact of lowering anxiety to increase openness, creativity and problem-solving abilities.

Through a combination of real-life examples and interactive exercises, attendees will learn how to evaluate their triggers and stressors, and manage stress by realigning priorities. Brooks plans to show attendees how to see through the noise and identify “What’s Important Now,” through contemporary methods such as the Care-O-Meter, the 30,000-foot perspective and the recommendations of Stephen Covey, author of “The 7 Habits of Highly Effective People.”

This dynamic session will not only provide educational instruction but equip attendees with the steps to remove avoidable stress and focus their energies in a targeted and efficient way. Attendees will not only be able to reflect on their personal and professional challenges but discover the secrets to reducing stress and living a healthy, balanced life.

Brooks’ military and law enforcement background — he is a major in the U.S. Army and a retired member of the Missouri State Highway Patrol — provides a unique take on stress management as someone with decades of experience in high-stress situations. He is the chief operating officer for Gray Ram Tactical, LLC, a Missouri-based international training and consulting firm specializing in transportation safety and security issues, as well as an author of books and articles.

STN EXPO East will be held March 26- 31, 2026 at Embassy Suites by Hilton Charlotte Concord Golf Resort & Spa. The Early Bird Savings Deadline is Feb. 13, register today at stnexpo.com/east.

---

Related: STN EXPO East Agenda Addresses Industry Challenges, Outlines Innovative Solutions
Related: STN EXPO East Keynote Speaker to Outline Strategies for Creating Impactful Culture
Related: STN EXPO East Opens Online Registration for March 2026

The post STN EXPO East to Feature Timely Discussion on Managing Stress appeared first on School Transportation News.

Plenty of automakers are rethinking their electric vehicle strategies. Some names make it easy to shrug and say, well, they probably bit off more than they could chew. Stellantis, for instance, has struggled to steer its EV plans with any consistency. But it’s not just the usual suspects pulling U-turns.

On the other side of that coin, you’ll find Porsche, which, like Stellantis and other mainstream brands, is now backtracking hard on its EV plans. The brand’s former CEO just openly admitted that making the Macan an EV-only model was a mistake. Porsche has plans to fix its foible, too.

A Misstep in the Macan Playbook

Former CEO Oliver Blume, who stepped down at the start of 2026, revealed that making the next-generation Macan electric-only was a mistake. Speaking with Frankfurter Allgemeine Zeitung, Blume said, “We were wrong about the Macan,” reflecting on Porsche’s 2019 decision to retire the gas-powered Macan in favor of a fully electric model.

More: Porsche’s Next 718 To Borrow 911 Power But Purists May Not Approve

We were there when the EV launched in early 2024. While purists didn’t love it, plenty of folks figured that most Macan buyers cared more about the badge than the engine. But cooling demand for pricey luxury EVs and regulatory hurdles made the all-electric Macan a tougher sell than some expected. Blume acknowledged that hindsight is 20/20.

“Based on the data at the time, we would have made the same decision,” Blume said, “but the situation today is different. We are responding by adding combustion engines and hybrids.” Porsche now plans to reintroduce a gas-powered compact crossover but it won’t be called the Macan.

What Comes After the Macan EV?

The new model, arriving no later than 2028, will occupy the same segment below the Cayenne SUV and is expected to use Volkswagen Group’s Premium Platform Combustion architecture, which underpins the Audi Q5. Blume described the upcoming crossover as “very, very typical Porsche” and deliberately distinct from the Macan EV.

More: Porsche Purists Might Want To Sit Down For The Next Macan With Front Bias

The Macan misstep isn’t the only one the brand is handling. Porsche also confirmed that future 718 sports cars, initially slated to go EV-only, will offer combustion and hybrid options.

It turns out that even one of the world’s most famous and focused brands can misread the market and industry to an almost embarrassing degree. In the end, we all just end up with more Porsches in more flavors and I can’t say I’m sad about that.

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.

Owning an electric vehicle or plug-in hybrid in Minnesota just became a pricier proposition. New legislation rolling out this month increases registration fees across the board, meaning drivers of EVs and PHEVs will see their annual costs jump, some significantly so, depending on the vehicle.

Up until now, electric vehicle owners in the state have paid a flat $75 annual surcharge in lieu of gas taxes, which are traditionally used to fund local road maintenance.

Also: Some States Give Up To $9,000 To Buy An EV, Others Charge You Hundreds

Under the updated rules that went into effect on January 1, 2026, that surcharge has doubled to a minimum of $150 for all EVs. Plug-in hybrid drivers, previously exempt due to their partial reliance on gasoline, are now included as well, with a new minimum fee of $75 added to their registration.

How Value Shapes the Surcharge

The updated surcharge isn’t flat. It scales based on the vehicle’s original sticker price and age. In the first year of registration, fully electric vehicles will be assessed an additional fee equal to 0.5 percent of the manufacturer’s suggested retail price (MSRP). For plug-in hybrids, the rate is set at 0.25 percent.

As vehicles age, the surcharge is reduced each year according to a sliding scale. By the second year, the calculation uses 95 percent of the original MSRP. That figure drops to 90 percent in year three, 80 percent in year four, and continues to decline by 10 percent increments. Once a vehicle is more than ten years old, the fee is based on just 10 percent of its original MSRP.

What Does It Mean for Popular Models?

For those considering an electric pickup like the Ford F-150 Lightning, the first-year fee could run as high as $325. By year two, that drops slightly to $309, and by year three it falls to around $253. Drivers of a Tesla Model 3, one of the state’s most common EVs, would be looking at $221 in the first year, followed by $210 in year two and $172 in year three.

As reported by Kare11, lawmakers have framed the new system as a way to ensure road infrastructure funding keeps pace with the shift away from internal combustion engines. Still, the move has raised concerns that it could dampen enthusiasm for EVs and plug-in hybrids at a time when adoption is just beginning to gain momentum.

The registration fee increases are not the only policy changes on the horizon. Beginning July 1, 2027, all public charging stations in the state that operate at 50 kW or higher will face a new tax of five cents per kilowatt-hour delivered. While relatively modest, the fee adds another layer of cost for EV drivers using fast charging options.