While the likes of Tesla can sleep easily in the US, largely insulated from the surge of Chinese EVs sweeping through global markets, the situation looks very different overseas. In places like Malaysia, where we’re currently experiencing the BYD lineup firsthand, the competitive landscape is far more intense.

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You’re probably already aware that brands like BYD have moved quickly to market with smaller and more affordable electric vehicles. What’s becoming clearer, however, is that they also seem to have an answer for nearly every category Tesla occupies.

Take the Sealion 7. In East Asia, it’s a mid size electric SUV that carries the Ocean Series legacy into a more premium segment. Available in both rear wheel drive and all wheel drive Performance variants, the Sealion 7 brings BYD’s e Platform 3.0 Evo, Blade Battery, and its so called Ocean Aesthetics design language into a very capable package.

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Or, if we strip away the brochure language, it may simply represent the next major headache for the Tesla Model Y.

But with the EV market at its most competitive, and BYD no longer alone in its export ambitions, the real question is whether the Sealion 7 can go toe to toe not just with Tesla, but with the growing wave of Chinese rivals also establishing themselves abroad.

Sealion? Ocean Aesthetics? What Does Any Of That Mean?

Photos Sam D. Smith / Carscoops

Okay, it’s a bit complex, but let’s try to break it down: BYD has multiple lines. For the domestic market, it has models under the Dynasty lines, and then you have the Ocean series, which, as the name implies, takes aquatic styling cues with sea-creature-based names. Seagull, Dolphin, and yes, Sealion. There are multiple Sealions as well, with the 5 being a Honda HR-V-sized competitor that’s also available with a hybrid drivetrain, and the Sealion 6 being a larger SUV in the vein of the Nissan Rogue.

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The Sealion 7 is more akin to the Audi Q8, a more stylish approach for those who care about such things. And while the front end is very much BYD, in the fact that it’s a tad anonymous but inoffensive, the rear end has actually grown on me.

Rather than trying to make a bold, but frankly pointless statement by being objectionably coupe-like (I’m looking at you, Porsche Cayenne Coupe and BMW X6), it’s a more cohesive, perhaps egg-like, shape. Again, it’s not revolutionary, but nor is it different for the sake of being different either. It’s streamlined and more put-together in its execution, avoiding the awkward proportions that so many other “sporty” SUVs seem to cling to.

That Low Tapering Roofline Can’t Be Very Practical, Can It?

Photos Sam D. Smith / Carscoops

Well, rear-seat passengers don’t have to sacrifice too much in terms of headroom, which is a plus. However, after several airport runs, it was soon clear that boot space, or rather the shape of it, is not the Sealion 7’s strong suit.

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That rounded-off rear does look nice, but when it comes to getting it to close when stuffed to the brim, you’re going to have to end up playing some suitcase tetris…or, in our case, moving some luggage to the passenger compartment instead.

Photos Sam D. Smith / Carscoops

It’s a common tradeoff: looks at the expense of practicality. But it’s also worth noting if you’re trying to decide between the more conventional Sealion 6 or the Sealion 7. Plus, it’s not all style over substance. There are some nice functional features too, such as proper air curtains in the front bumper, which help with airflow around the wheels.

It’s Still A Chinese Car, Right? How Stylish Can It Be?

You’d be surprised. Yes, there are still a fair few (how should we put this?) “inspired” designs throughout the Chinese market, with the Land Rover Defender and Range Rover seemingly being the most imitated. The Sealion 7, though, looks to be cutting its own mold in many respects.

It’s the interior that really shines. Unlike the Atto 3 we tested earlier, this is a much more “conventional” setup. The interior quality feels premium, with soft-touch plastics everywhere, while the layout won’t have you scratching your head.

It still lacks physical AC controls, except there’s a button to turn the fan on and off. Not fan speed. Not temperature. Just on and off. Why?

Now, having spent some time with BYD products, I’m going to label the rotating screen as gimmicky. At 15.6 inches, it’s large enough for anything you’d want, and the hardware is beefy enough for the system to be super snappy and responsive. However, if you do use wireless CarPlay or Android Auto, as 90 percent of users will, the screen will force you to use it in its landscape orientation. Go figure.

Photos Sam D. Smith / Carscoops

Still, there’s some great integration with the super-legible driver’s display and head-up display, the latter of which supports turn-by-turn navigation when using Google Maps. Both screens also do an excellent job of displaying info for the lane-keep assist and cruise control functions, which are noticeably less intrusive than earlier attempts from BYD.

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The electric seats feature lumbar and adjustable under-thigh support, helping these chairs feel supportive, but not overly bolstered. The front seats are also ventilated, with up to three speeds of cooled air channeled to combat any hint of back sweat.

If you want to see more of the outside, there’s a full-length panoramic roof with an electrically controlled sunshade, and there are physical switches for drive modes and regen.

So, How Does It Drive?

In a single sentence, it feels mature, but still not as polished as I’d have hoped. BYD may have had a few missteps in the past, but their premium product offerings are starting to feel closer to the semi-premium image they’re chasing in the way they drive.

The Performance AWD model we got to the keys to packs a dual-motor setup for AWD, producing 390kW (523 hp) and 690 Nm of torque. To get from 0-100 km/h (0-62 mph) you need just 4.5 seconds. That’s faster than a Porsche Cayenne Coupe S, all while offering an integrated battery, fast charging up to 230 kW, and being able to top up from 10-80 percent in around 24 minutes.

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While figures are all well and good, there’s proper substance when you’re behind the wheel. While a proper enthusiast may want a quicker ratio rack, the Sealion 7’s steering is nicely weighted, and does a decent job of providing the kind of feedback that you need with 500+ hp under your right foot.

The car also handles better than expected. There’s a trend for Chinese SUVs to be a bit over-damped, with the ensuing wallow meaning that true confidence can’t be found. But the Sealion 7’s chassis not only feels dynamic through a set of quick corners, it also remains planted, more sedan-like than you may expect.

There’s one huge penalty, though, experienced while driving on Malaysia’s roads. Over bigger, faster imperfections, such as expansion joints, the ride feels almost crashy. It’s the one chink in this BYD’s armor that would otherwise have convinced us that the Germans themselves had tuned this suspension. But alas, there’s still a lack of composure there.

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But at slower speeds, and over smaller humps, the Sealion 7 maintains a well-damped composure that you’d expect from something upmarket, and that’s despite riding on 19-inch rims. Also of note is that the Performance version of the Sealion 7 comes equipped with Michelin Pilot Sport EV tires, again, another sign that BYD is taking this segment of SUV seriously, rather than cheaping out on lesser-known rubber, as has been seen in the past.

You also get several drive modes, and they behave pretty much as expected. However, despite offering selectable “normal” and “larger” regenerative braking settings, there’s still no proper one-pedal driving mode. It’s not a dealbreaker, but it does feel like something future versions of the Sealion should include if it’s going to go head-to-head with Tesla

Verdict

For the Malaysian market, the Sealion 07 comes in at RM 183,800 (equal to $25,900 a current rates) for the Premium model, or RM 199,800 ($28,100) for the AWD Performance. The latter undercuts Tesla’s Model Y Long Range AWD (RM 242,450) significantly, which is slower (0-62 mph in 4.8 seconds vs 4.5 seconds for the BYD), and has less range on the WLTP cycle.

But with more aggressive entries planned for East Asia, including the likes of Chery and Changan, the Sealion 7 is about to come up against tough competition. It highlights the fast-moving pace of the EV industry, particularly spurred on by the Chinese automakers who are keen to find market share outside of their home playing field.

Photos Sam D. Smith / Carscoops

The Mercedes A-Class looks to be sticking around for the foreseeable future, just not in its current guise. Despite initial speculation that the model was going to be culled, as Benz tries to consolidate its offerings, a replacement for the existing model may very well come to fruition, albeit as an EV.

Although plans haven’t yet been announced, in an interview with Design Director Robert Lesnik Auto Express gleaned info that the new hatchback will probably arrive towards the end of the decade as an EV.

Current expectations suggest the next-generation model could debut around 2029, after the existing A-Class completes an extended production run expected to last until 2028.

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The current A-Class debuted all the way back in 2018, making the model well overdue for a refresh by the time the new generation rolls around.

EV Architecture

In order meet the needs of the next-generation A-Class, Mercedes intends to transfer the production of the current A-Class to the Hungary plant in the next year. Lesnik claimed the production line wouldn’t require a significant revision to meet the specific requirements of the new MMA (Modular Mercedes Architecture) platform. Mercedes focuses on expanding the versatility of the MMA platform to give next-gen EV technology, innovative design, and cost efficiency.

The MMA platform grants the company the flexibility to fit the same all-electric powertrain and hybrid unit as in the CLA model, underpinning the next-generation A-class. Mercedes developed this hybrid system to meet the stringent Euro 7 emissions standards to be implemented by 2027.

When Mercedes first outlined its compact MMA lineup in 2023, it planned four models including the CLA, CLA Shooting Brake, GLA, and GLB. Lesnik indicated that an electric A-Class would effectively become a fifth model in that family.

A-Class, Not An EQA

Mercedes has decided its somewhat confusing decision to separate its EV models under their own “EQ” brand wasn’t the best way forward. Which is why the A-Class name is likely to remain in place of the EQA.

Lesnik also confirmed that the A-Class will remain stylish, with a “cab-back” approach, as opposed to the original upright shape adopted by the A-Class of the 90s. The design is also expected to avoid the streamlined styling seen on models like the EQE and EQS, instead following the CLA’s longer-hood proportions and more traditional hatchback profile.

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.

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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.

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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.

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.

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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.”

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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.