Chinese automaker BYD announced that the Yangwang U9 Track Edition has reached a top speed of 472.41 km/h (293.54 mph) at a test track in Germany, making it the fastest electric vehicle in the world.

The record run took place on August 8 at the ATP Automotive Testing Papenburg facilities, with professional driver Marc Basseng behind the wheel. The previous record was held by the Rimac Nevera R that hit 431.45 km/h (268.2 mph) on July 2025. Furthermore, the Track Edition proved to be much faster than the standard Yangwang U9 that reached 391.94 km/h (243.54 mph) in November 2024.

More: Mate Rimac Questions If China’s 3,000 HP Hypercar Can Really Deliver

The Track Edition is fitted with quad electric motors generating a peak power of 744 hp (555 kW / 755 PS) each. According to BYD, the combined output is over 2,960 hp (2,207 kW / 3,000 PS), translating to an impressive power-to-weight ratio of 1,200 hp per tonne. By comparison, the Nevera R has 1,989 hp (1,571 kW / 2,017 PS) and a ratio of 978 hp per tonne.

In order to control all that power, the EV utilizes advanced torque vectoring abilities, and the e4 Platform’s DiSus-X Intelligent Body Control System making automatic adjustments to the suspension for maximum grip. Furthermore, it is said to be use “the first mass-produced 1200V ultra-high-voltage vehicle platform, paired with a thermal-management system optimized for extreme conditions”.

BYD

The Yangwang U9 Track Edition made its first appearance earlier this month through China’s Ministry of Industry and Information Technology. The model that achieved the record appears to have duct tape on the panel gaps for improved aerodynamics. It also features an optional redesigned carbon fiber splitter and does without the swan neck rear wing.

More: AMG Hyper EV Circles The Globe In Seven Days And Smashes 25 Records

The record-breaking EV rides on a set of track-focused semi-slick tires developed in collaboration with Giti Tire. These feature optimized compound materials and a bespoke tread design, along with a high-viscosity lubricant and a special knurling treatment between the tire and the rim for minimizing relative slippage.

Basseng, who was also behind the wheel of the previous record run with the regular Yangwang U9, said: “Last year, I thought I’d peaked. I never expected to break my own record so soon – but here we are, at the same track, with new technologies that have made it possible.”

Few could have predicted just how quickly Chinese automakers would come to dominate the affordable EV market. In less than a decade, brands from the People’s Republic have gone from underdogs to leaders, reshaping global competition so dramatically that legacy carmakers have largely stepped back from the lower-cost segment, according to a new UK report.

Read: China’s Most British Roadster Freshens Up For 2026

The study, published by the FIA Foundation, highlights how the rise of small, budget-friendly EVs from China is pushing European and British manufacturers to concentrate on larger and more premium models instead.

China’s Growing Edge

“China, which now accounts for 27pc of global passenger car sales, has secured a competitive edge in manufacturing smaller EVs, with strengths across key aspects of EV production, including battery supply chains, manufacturing efficiency and software,” the report says. “It means China has evolved from a net importer of passenger cars before 2020 to the world’s largest net exporter.”

According to the report, this has led to European and British brands to cede the affordable car market. Of course, whether or not the car manufacturers themselves would admit this remains to be seen.

While EVs from China have been kept out of the US, they are becoming an increasingly common sight in the UK. Of all the new cars sold in the UK in June, roughly 19,000 of them were made by Chinese brands like MG, BYD, Omoda, and Jaecoo. Currently, there are more than 130 EV models available in the country and of these, 33 are priced under £30,000 ($40,200).

Small Cars, Big Potential

The surge in Chinese EVs could help to combat the swelling size of new vehicles. As noted by the chief executive of the RAC Foundation, Steve Gooding, “Our love affair with Fiesta-sized cars might swiftly be rekindled if more small, keenly priced EV models start coming to market,” he told Yahoo!.

Incentives from the nation’s Department of Transport could help to increase the number of small EVs on local roads. Discounts of up to £3,750 ($5,025) are available for new electric cars and more than 100,000 addition public charging locations are in the works.

In a bid to protect its car industry, as well as hit back at Chinese carmakers for receiving unfair subsidies from their government, the European Union has been imposing hefty tariffs on imported EVs from the People’s Republic since October 2024. However, Chinese brands are already looking to circumvent the tariffs as much as possible by setting up local production facilities and, at least for the time being, increasing their focus on hybrids.

Where There’s a Will, There’s a Way

Hybrids sit in a relatively safe zone, since they’re only partially covered by the EU’s tariff system. Combined with the fact that they remain popular with European buyers, it’s no surprise that Chinese automakers are boosting hybrid imports at record levels.

Read: Toyota Finally Blinks As Europe’s EV Market Closes In

A recent report from Dataforce reveals that BYD registered 20,000 plug-in hybrids in the EU through the first half of the year, more than three times the number of PHEVs it imported during the whole of 2024. In addition, MG has imported more PHEVs across January-June than it did in all of 2024. Lynk & Co is also importing more PHEVs to Europe than ever.

Increasing their focus on hybrids greatly benefits Chinese firms. Every EV that BYD sells in Germany is hit with a base 10 percent duty and then a 17 percent additional duty, bringing the tariff up to 27 percent. For the best-selling Atto 3, these tariffs add about €10,000 ($11,600) to the electric SUV. By comparison, the plug-in hybrid BYD Seal U only has to deal with 10 percent duties, or the equivalent of €3,999 ($4,600) based on its €39,999 ($46,600) starting price.

The impact is even more significant for SAIC, which sells MG models. It has to deal with the highest EU tariffs of 45.3 percent for its imported EVs. So, through the first six months of this year, it has sold 60 percent fewer EVs across the continent, but has increased registrations for the hybrid MG HS, MG ZS, and MG 3.

Changing Tactics to Circumvent Obstacles

“It was only a matter of time before the Chinese manufacturers changed their strategy after the introduction of the special tariffs in order to increase their profitability in Europe,” the director of the Center Automotive Research in Germany, Beatrix Keim told Handelsblatt.

It’s understood the European Commission is aware of the loophole being exploited by Chinese brands, but it does not appear to be concerned. Instead, it remains hopeful it’ll be able to work things out by having talks with China’s aggressively expanding automakers.

Porsche has its Experience Centers, and now Chinese juggernaut BYD has opened a massive, all-terrain driving experience center in Zhengzhou that’s basically a dream theme park for any automotive enthusiast. Many of the brand’s most impressive models are available to test at the site, including the all-electric Yangwang U9.

Perhaps the highlight of the facility is a 1-mile (1.7-km) race track with nine corners and a 1,804-foot (550 m) straight, long enough to let BYD’s flagship models hit up to 136 mph (220 km/h). Situated near the track is a 15,300 square-meter ‘dynamic paddock’ where cars can complete slalom and moose tests, and showcase their automated parking functions.

Read: This YangWang Comes With Three Times The Power Of A Bugatti Veyron

BYD has also built a large low-friction area with 30,000 smooth basalt bricks that gets covered in water, aiming to replicate driving on snow and ice. It’s even gone ahead and built a huge 70-meter-long pool. The latter isn’t for swimming in, but has been designed to showcase the YangWang U8’s ability to float and move slowly across water thanks to its advanced electric powertrain. Yes, despite the brand’s status and painstaking attention to detail, this isn’t something you’ll find at a Porsche Experience Center.

You also won’t find anything like BYD’s Sand Incline at a Porsche facility either. This massive sand dune has been certified by Guinness World Records as the highest and largest dune climbing facility for car testing, constructed from 6,200 tons of sand mimicking the sand found in the Alxa Desert. It also serves as a proving ground for the U8. The facility also includes a separate off-roading area as well as a large camping and relaxation area for visitors.

Four different tickets are available for those who’d like to experience all that BYD has to offer. The cheapest ticket, priced at 899 yuan or $83, includes a passenger ride in the YangWang U9 as well as experiences in one vehicle from BYD’s Dynasty or Ocean series. A pricier 999 yuan ($139) ticket is also offered, adding experiences with two Denza and Fang Cheng Bao models, including a track drive of the Z9 GT.

Two other ticket options are available. The first costs 1,999 yuan or $280 and includes experiences in both the YangWang U8 and U9, as well as the Dynasty/Ocean series models and cars from Denza and Fang Cheng Bao. A VIP ticket is also available, costing 6,666 yuan or $927. It includes access to all models and areas of the facility, as well as a one-night stay in a nearby five-star hotel.

Earlier this week, information out of China revealed that the new YangWang U9 Track Edition will be capable of producing a combined 2,977 hp. If true, that would eclipse the new Rimac Nevera R by 870 horsepower, but Mate Rimac has thrown cold water on the idea that the U9 will have this much power, suggesting it could have been “wrongly advertised” or “interpreted.”

Read: This YangWang Comes With Three Times The Power Of A Bugatti Veyron

In a comment on the Apex Automotor Facebook group, Rimac pointed out that “most Chinese EVs use LFP cells, I doubt that any of them can deliver 20+C discharge rates (even for 1 second) that would be needed to deliver 2+ Megawatts of power.”

Battery limitations

Rimac went on to add that the Nevera R packs “the latest and greatest in performance battery cell technology,” and it is limited to roughly 1.5 megawatts of power, or exactly 2,107 hp. He explained that while the battery can provide more power, the motors and inverters are at their limits. In his view, the system will “probably do 2 MW for a couple of seconds,” but not without beefing up the rest of the powertrain.

Then there’s the matter of tires. The Nevera R is “already above the traction limit of the highest performance road tires on the market until 100 mph,” Rimac added, meaning that if the YangWang U9 Track Edition had almost 1,000 hp more, “it would probably not be able to put the power down until 150+ mph.”

He also stressed that peak power is just a number and that it’s more important “how that power is delivered and sustained.”

Official specifications

Data released by the Chinese Ministry of Industry and Information Technology (MIIT) claims that each of the four electric motors of the BYD YangWang U9 Track Edition delivers 744 hp or 555 kW, resulting in a combined 2,977 hp. That said, there’s no confirmation that all four motors can operate at peak output simultaneously in real-world driving.

Two decades ago, the Bugatti Veyron rewrote the rule book for supercars, hitting the market with four-figure horsepower that was previously inconceivable for a production car. Fast forward 20 years, and we’re in the midst of an EV horsepower war, currently led by the Rimac Nevera R and its 2,107 hp and the Lotus Evija with its 1,972 hp. But, 2,000-odd horsepower isn’t enough for BYD, so it’s gearing up to release a hypercar with a combined 2,977 hp.

Read: You’ll Need Deep Pockets For China’s Biggest YangWang With Power To Shame A Veyron

This new model, badged as the Track Edition of the YangWang U9, has been uncovered in photos from the Chinese Ministry of Industry and Information Technology (MIIT) and laughs in the face of high-powered European EVs.

A Road Car with Racing Numbers

The U9 Track Edition will be powered by four electric motors, each with 744 hp or 555 kW. The combined output is rated at a ridiculous 2,976 hp, or 2,200 kW, which works out to be a grand total of 3,019 PS. That’s an insane figure for a road car, let alone one that can be legally driven on public roads.

Importantly, there’s no confirmation from BYD that all four electric motors will always operate at their peak, or if power will be limited to make the hypercar easier to drive.

The Other Changes

The U9 Track Edition retains most of the same exterior components as the “regular” model, but has some small upgrades. The changes start at the front end, where YangWang’s designers have crafted a new splitter to increase downforce over the front wheels.

There is also a lightweight carbon fiber roof, and new 20-inch wheels with 325-section front and rear tires. The rear half looks mostly the same as the standard model, complete with a swan neck-style rear wing and a large diffuser.

MIIT documents list the U9 Track Edition’s top speed at 217 mph (350 km/h), but it should be capable of more than that. The standard model has already been tested to 244 mph (391.91 km/h), and it makes do with ‘only’ 1,287 hp.

Compared with their predecessors from a decade ago, today’s EVs go further, charge faster and have far more charging stations to choose from, but some would-be buyers still cite range anxiety as a reason for not going electric. And the results of a new study investigating the real range of EVs currently on sale suggests those fears are entirely justifiable.

The Australian Automobile Association (AAA) picked five EVs from a mix of brands as part of its government-funded four-year test designed to arm the nation’s car buyers with honest data. After subjecting each of the electric cars to a real-world driving route it found one of models delivered 23 percent less range than its maker claims.

Related: After 100K Miles, VW’s EV Barely Lost Range Thanks To One Trick

That car, the BYD Atto 3, only achieved 229 miles (369 km) before needing a recharge, representing a 69-mile (111 km) shortfall on the Chinese automaker’s 298-mile (480 km) official figure. Tesla’s Model 3 didn’t tell quite so big a lie, but it also failed to live up to its official range figures by a fairly large margin considering the tests weren’t carried out in the Arctic. The 274 miles (441 km) it achieved was 14 percent lower than Tesla’s 319-mile (513 km) claim.

Inconsistent Accuracy

But the big takeaway from the investigation isn’t that all EV range claims are wildly inaccurate. All five cars delivered fewer miles than advertized, and the BYD was wildly off. But one of the cars very nearly matched its official range, falling just 5 percent short, and it’s this difference across the brands, and cross models within the same brand, that’s the real problem for consumers.

If they knew that every car over-promised by 20 percent, it would be easier to make buying decisions than it is when you’ve no idea which brands to believe. It’s for this reason that these kind of independent tests are so useful for buyers looking at spending tens of thousands of dollars on a new car.

Standout Performer

The AAA’s test champ was the Smart #3, whose 268-mile (432 km) true range was only 14 miles (23 km) out. Kia’s EV6 and the Tesla Model Y also performed relatively well, each returning 8 percent less range than claimed.

AAA

Despite early dominance in the electric vehicle market, Tesla is now struggling to keep pace in Europe. Recent industry sales data continues to show a troubling pattern, with the automaker losing ground in several key countries.

Sales have taken a hit in Belgium, the Netherlands, Sweden, Denmark, France, and Italy, and more importantly, the numbers are rapidly declining in two of the continent’s most crucial markets: the United Kingdom and Germany.

Read: Tesla Is Losing Europe Faster Than Elon Musk Can Tweet

According to the UK’s Society of Motor Manufacturers and Traders (SMMT), Tesla sold a total of 987 new vehicles in the country in July. That’s a steep fall from the 2,462 units sold during the same month last year, marking a nearly 60 percent drop. What’s particularly worrying about this is that the thoroughly updated Model Y is now available in the UK, but it has failed to reverse the carmaker’s fortunes.

BYD Outsells Tesla in the UK – By a Lot

Poor sales are one thing, but adding insult to injury for Tesla in the UK is the strong performance of one of its main rivals. Chinese electric vehicle maker BYD sold 3,184 new cars in the country in July, more than four times what it managed in the same month last year. That total puts it clearly ahead of Tesla for the month, underscoring how quickly the landscape is changing these days.

German Market Slips Further

Over in Germany, things are also looking bleak for Tesla. Sales there slipped 55.1 percent in July to just 1,110 units. Year-to-date, Tesla’s sales in Germany have also collapsed 57.8 percent to approximately 10,000 units. Then there’s the threat from BYD.

Data reveals that BYD sold 1,126 new vehicles in Germany last month, narrowly edging out Tesla. Its year-to-date sales have also soared nearly 390 percent to 7,449 units.

What makes the German decline even more concerning is that it happened despite the overall electric vehicle market growing by 58 percent in July, with 48,416 EVs registered. In other words, while more buyers are turning to EVs in Germany, fewer of them are choosing Tesla.

Tesla faces an uphill battle if it wants to stop the bleeding in Europe and retain its dominant market share. Unlike in the US, where the brand doesn’t have to deal with the threat posed by Chinese automakers, a growing number of EVs from China are flooding European shores, more often than not offering better features for lower prices.

A pivotal moment is approaching for Ford’s electric vehicle future, with the company preparing to unveil a major shift in its EV strategy on August 11. CEO Jim Farley described the upcoming announcement as a “Model T moment,” hinting at a potentially transformative direction for the automaker. “Our strategy is very simple,” Farley said, emphasizing a focus on profitability within specific EV segments.

While profitability is the keyword that will interest investors, could the reference to the company’s seminal model indicate that the Blue Oval’s EV announcement will focus on affordable, mass-produced motoring, much like the original model?

Lagging Behind China

In the past, Farley has been quite forthcoming with his admiration for Chinese tech, having daily driven a Xiaomi SU7 EV, and claiming it was “fantastic,” and that he was having a hard time giving it up. According to a report from Nikkei Asia, that same rhetoric was repeated on Tuesday’s earnings call, acknowledging that Ford lags behind its eastern rivals.

Read: Ford Bracing For A $2 Billion Blow From Trump’s Tariff Legacy

“We really see not the global OEMs as a competitive set for our next generation of EVs,” said Farley, likely referencing the likes of GM, Stellantis, and VW. “We see the Chinese companies like Geely and BYD…”We believe the only way to compete effectively with the Chinese over the globe on EVs is to go and really push ourselves to radically re-engineer and transform our engineering supply chain and manufacturing process.”

Ford is rethinking the entire EV manufacturing and supply chain approach, recognizing the need for a “radical re-engineering” of these processes to effectively counter Chinese automakers’ cost competitiveness and innovation pace.

In addition, Ford plans to rely heavily on partnerships as EV technology and supply chains rapidly commoditize. Farley noted that apart from the complex electrical architecture, differentiation in the EV sector is becoming increasingly difficult, making strategic alliances essential.

Tariffs, Tariffs, Tariffs

Farley also predicts a growing regionalization of the global automotive market, driven by tariff structures and local electrification and emissions regulations. He cited recent negotiations reducing auto import tariffs to 15% from the initially proposed 25%, seeing this shift as an “opportunity” for Ford. Despite facing around $2 billion in tariff-related expenses annually, primarily from imported components, Farley remains optimistic that Ford can leverage its status as a major American employer for potential policy relief and competitive advantage.

Ultimately, Ford’s new EV strategy reflects a broader industry reality: traditional automakers must swiftly adapt their operational and manufacturing strategies to navigate an increasingly competitive and geographically segmented automotive landscape.

China’s electric vehicle industry has seen explosive growth in recent years, and much of that momentum has been fueled by generous government incentives. While this support has helped establish China as a global EV powerhouse, a closer look reveals that not all of the subsidies have been fairly or properly claimed.

Read: China Has Poured Over $230 Billion Into EV Industry, Study Finds

Even some of the country’s biggest names in the EV space, including BYD and Chery Automobile, have reportedly received funds they weren’t entitled to.

An audit of China’s EV subsidy program covering the years 2016 through 2020 uncovered that around 864 million yuan (roughly $121 million at current exchange rates) was distributed to automakers that didn’t meet the qualifying criteria. Chery, for instance, claimed 240 million yuan (about $33 million) for approximately 8,860 electric and hybrid vehicles that were not eligible for the subsidy.

Big Names, Big Numbers

Additionally, China’s Ministry of Industry and Information Technology has revealed that 143 million yuan (about $20 million) worth of subsidies were provided to BYD for just 4,900 cars. There’s no word on whether these subsidies have had to be returned to the authorities or if the excess amounts were deducted from recent payments, as reported by Bloomberg.

Subsidy System Open to Abuse

China launched its EV subsidy program in the early 2010s and provided as much as 60,000 yuan ($8,400) per car. This rebate was paid in bulk to manufacturers who could then use the discount to slash prices for customers. As it turns out, the program was rife for scams, and in 2016 alone, it’s reported that dozens of companies fraudulently claimed roughly 9.3 billion yuan (approximately $1.3 billion) in subsidies.

Government officials are keeping a watchful eye on the local EV market. Car brands have been urged to stop the ongoing price war and to stop using shady sales targets to boost volumes. It was recently revealed that many companies are providing new dealers to traders and dealers in bulk, who then register them so brands can record them as sales. These vehicles then hit the market as “zero-mileage used cars.”

Plans for global growth rarely follow a straight line, especially when politics and international trade come into play. For BYD, one of the world’s fastest-rising automakers, a much-anticipated expansion into Mexico has been put on hold.

The reason? A mix of shifting geopolitical winds and concerns over U.S. trade policy, particularly in light of Donald Trump’s return to the White House. Still, the company isn’t slowing down entirely, and has just opened its first factory outside of Asia, located in Brazil.

Read: Major Carmaker Sued Over One Toilet Per 31 Workers And Other Horrors

As we reported last year, had been scoping out three locations in Mexico for a new factory. However, it paused its search in September to wait to see the outcome of the 2024 US presidential election, likely anticipating that a victory for Trump would likely shake up the status quo of international trade. That’s exactly what the 45th and 47th President has done.

While recently speaking at the opening of BYD’s new factory in Brazil, executive vice president Stella La said the surging automaker is rethinking its strategy.

“Geopolitical issues have a big impact on the automotive industry,” she told Bloomberg. “Now everybody is rethinking their strategy in other countries. We want to wait for more clarity before making our decision.”

BYD’s efforts to establish a base in Mexico were hampered in March, even before President Trump announced sweeping tariffs. That month, China’s commerce ministry delayed approval of the Mexican factory due to concerns the carmaker’s technology could be accessed by the US.

From Pause in Mexico to Progress in Brazil

Although Mexico is no longer in play for the moment, BYD is still moving forward in the region. The company’s new facility in Camaçari, Brazil , is now operational and has room to grow. It currently produces up to 150,000 vehicles a year, with plans to double that figure to 300,000 within two years.

However, the site has not been without controversy. Late last year, Brazilian authorities reported that some international workers at the plant had been living in conditions likened to modern-day slavery.

In response, Li emphasized the company’s commitment to reform. Going forward, she said, BYD will work more closely with local partners to uphold labor and human rights standards.

“We should slow down, step back from the focus on speed,” Li said. “It will take longer, but that’s OK.”

Even as the global car market continues to shift, one thing remains certain: Toyota knows how to move metal. After a brief detour in second place, the Toyota RAV4 is back on top as the world’s best-selling car, edging out the Tesla Model Y by a sliver.

And it’s not just the soon-to-be-replaced RAV4 doing the heavy lifting, as Toyota has managed to land five models in the global top ten, including the Corolla Cross, Corolla sedan, Hilux, and Camry.

More: New RAV4, See Every Angle And Hidden Detail

This ranking comes from industry analyst Felipe Munoz, who compiled a detailed snapshot of 2024’s global car sales by model. His methodology pulls from a wide mix of sources, including national statistics offices, dealership associations, customs data, specialized websites, blogs, other analysts, and informed estimates. According to Munoz, the ranking covers 153 markets, accounting for roughly 99% of all cars sold globally.

Toyota Retakes the Lead, Barely

Combined sales of the Toyota RAV4 and its China-market twin, the Wildlander, reached 1,187,000 units in 2024. That was just enough to slide past the Tesla Model Y, which landed at 1,185,000 units. It’s a narrow win, but a win nonetheless.

It’s important to note that both the RAV4 and Model Y were refreshed shortly after the period covered by this report. Toyota rolled out a full redesign for the RAV4, that hasn’t gone on sale yet while Tesla introduced its updated Model Y Juniper that’s already available.

That said, the Model Y still holds the title for best-selling EV worldwide by a comfortable margin. Its 2025 numbers, however, are already showing signs of slowing.

Compact Crossovers Keep Climbing

The Toyota Corolla Cross occupied the third place with 859,000 sales, benefiting from the fact it is offered in many different markets around the world. The compact crossover was closely followed by the Honda CR-V/Breeze SUV that sold 854,000 units.

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Toyota’s dominance continues with the Corolla / Levin Sedan (697,000 units) in the fifth place and the Toyota Hilux (617,000 units) in the sixth place.

World’s Best Selling Pickup

The aging Hilux is due for a new generation soon, but that didn’t stop it from becoming the world’s best-selling pickup. Despite not being sold in North America or China, two massive truck markets, it still managed to outpace all competitors. Right behind it in the global rankings is the Ford F-150, which sold 595,000 units and claimed seventh place overall. In the US, the F-150 was the second best-selling vehicle of 2024, coming in just behind the RAV4.

More: Cracks Are Beginning To Appear In China’s Largest EV Maker

Rounding out the top ten are three sedans that continue to hold their ground in a market that increasingly leans toward crossovers and SUVs. The Toyota Camry took eighth with 593,000 sales, followed by the Tesla Model 3 at 560,000 and the BYD Qin at 502,000. BYD’s entry marks the only Chinese brand on the list this year, underscoring the company’s steady rise as a global competitor in both EVs and internal combustion vehicles.

BYD’s growth has been exponential, and last year, it was the sixth-largest carmaker by volume, selling an incredible 4.27 million vehicles. This year, BYD is targeting 30% growth and is pushing to sell as many as 5.5 million cars. However, unnamed sources claim the company’s expansion has slowed in recent months, and it has reduced production at some of its factories.

It’s claimed that BYD has cut night shifts at some of its factories while also reducing output by at least a third. These changes have reportedly been made at four factories, at least. In addition, BYD is believed to have suspended plans to set up several new production lines.

Read: This Country Faces A Cheap EV Invasion That Could Destroy Its Auto Industry

Sources speaking with Reuters did not specify the exact scale of the production reduction, but one said the moves were being made because BYD’s sales have failed to meet its targets, while another suggested the company is looking to reduce costs.

Growing Pains

In April, the growth of BYD’s global output had slowed to 13% year-over-year, and in May, it slowed to 0.2%. These were the slowest growth rates the company has seen since February 2024. In addition, the China Association of Automobile Manufacturers’ data has revealed that BYD’s average output in April and May was 29% lower than in the fourth quarter of 2024.

BYD’s incredible expansion has put many legacy car brands on notice in key markets worldwide. With an ever-growing range of competitively priced models, BYD has triggered an industry-crushing price war. While this has helped to drive up sales, it has also increased inventories. In China, BYD dealers held an average inventory of 3.21 months, significantly above the local industry average of 1.38 months, and the highest of all brands in China.

One major BYD dealer was recently forced to close 20 dealerships across the country. Soaring inventories have also prompted the China Auto Dealers Chamber of Commerce to tell carmakers to stop offloading so many cars and to set production targets in line with sales.

A Profitable, Yet Bumpy Ride

In March this year, BYD announced that its annual revenue for 2024 reached 777 billion yuan ($108.3 billion), surpassing Tesla’s $97.7 billion. This marked a 29% increase from the previous year, driven largely by strong hybrid vehicle sales, positioning BYD as the new leader in the electrified market.

Cheap plug-in hybrids and electric vehicles from China are rolling into global markets at full throttle, and Brazil is starting to feel the pressure. One of the most aggressive players in this push, BYD, is now operating an entire fleet of its own massive car-carrying ships.

While the influx of affordable new models has its supporters, a growing number of Brazilian industry experts are voicing concerns that these imported vehicles could undermine the country’s long-established auto manufacturing sector, Reuters reports.

Also: China’s Cheap EV Bargain That Might Be Watching Your Every Move

Brazil ranks as the world’s sixth-largest car market, so it’s not exactly surprising that companies like BYD are keen to carve out their share. But unlike longtime players such as Volkswagen, General Motors, and Stellantis, which have spent decades building factories and jobs across the country, BYD and other brands including GWM and Volvo are shipping in cars from overseas, bypassing local production.

Tariffs, or a lack thereof, are one of the reasons why Brazil has become so important for Chinese car brands. A decade ago, the government scrapped tariffs on imported vehicles in a bid to drive up demand for electric vehicles built overseas. It did reinstate a 10% tariff on EVs last year, but this is relatively small compared to the company-specific tariffs that Chinese brands are facing in Europe.

The Chinese Have Arrived

Chinese brands like BYD appear to be rushing to import as many vehicles into Brazil as quickly as possible. Currently, these carmakers can import up to $169 million worth of PHEVs and $226 million EVs toll-free by July 2025. Import tariffs are scheduled to increase every six months and top out at 35% in 2026. However, some are calling on the government to accelerate these tariff hikes by a year, implementing the 35% rate as soon as possible.

BYD has imported approximately 22,000 vehicles to Brazil during the first five months of this year, and by the end of 2025, as many as 200,000 new vehicles from China could be imported into the country, or roughly 8% of all new car sales.

Local Production

BYD has been working on building a plant in the state of Bahia, but after foreign employees were found to be working in squalor late last year, the plant’s opening has been pushed back until December 2026. Similarly, GWM has delayed its local production plans by a year.

“We support the arrival of new brands in Brazil to produce, promote the components sector, create jobs and bring new technologies,” ANFAVEA president Igor Calvet told Reuters. “But from the moment that an excess of imports causes lower investment in production in Brazil, that worries us.”

Electric vehicle prices in China have become so low, they’re practically tripping over themselves – and now the government is stepping in to say enough is enough. The push to cool the pricing chaos is gaining traction, and even BYD, one of the key players driving it, admits the current pace can’t last. However, whether they take action remains to be seen.

With an endless lineup of new EVs in China now selling for less than a base-model Nissan Versa in the United States, concerns are growing. Investors are raising eyebrows, and regulators are stepping in. Earlier this month, government officials met with auto industry executives to urge an end to loss-leading sales strategies and aggressive price cuts.

Read: China Warns EV Makers To Stop Price Wars Before It’s Too Late

According to reports, officials urged self-regulation across the industry. China’s market regulator also called for efforts to “comprehensively rectify ‘involutionary’ competition,” echoing a term used by Chinese Premier Li Qiang to describe the self-defeating marketing decisions being made. To put it simply, the Chinese government wants its carmakers to mature and act like responsible adults.

BYD Has Its Say

Speaking at a Bloomberg News event in London, BYD executive vice president Stella Li acknowledged the obvious: “It’s very extreme, tough competition.” She added, “No, it’s not sustainable,” and predicted that consolidation among major Chinese carmakers is on the horizon.

That’s not just speculation. The price war is said to be one of the reasons why BYD’s market capitalization has fallen by roughly $22 billion in recent weeks. However, if it succeeds in squeezing out competition from small companies, its market share is likely to continue growing in the coming years.

The Expansion Continues

BYD’s global expansion shows no signs of slowing down. In May, the car manufacturer sold more cars in Europe than Tesla after its sales spiked 169 percent from April 2024, whereas Tesla’s sales plummeted 49 percent. Not only is BYD selling more cars in Europe, but it’s also readying more powertrain options. In April, the company said that it’ll launch at least two new plug-in hybrids in Europe this year.

So while prices may be under pressure at home, BYD is still betting big on its international future.

It’s no secret that BYD is rapidly climbing the global sales charts, cranking out an ever-growing lineup of electric and plug-in hybrid models. But even ambitious automakers have off days, and this time, BYD might have let its engineers go a little too wild in the workshop.

A new prototype has surfaced in China that looks more like a garage art project than a car supposedly aiming to compete with the likes of Porsche, including the upcoming 718 EV (at least on paper).

Read: Denza Z Is An Electric Porsche Rival With A Fold-Away Steering Wheel

This bizarre prototype was recently spotted in China and despite missing most of its bodywork, we can see it’s a tester for the Denza Z. First showcased at the recent Shanghai Auto Show as a concept, it’s clear BYD has already given Denza the green light to bring it into production.

What immediately stands out is the sheer amount of spray foam involved. For whatever reason, it covers the roof, rear window, and rear deck, creeping across pillars and window frames, even appearing to bond some of the body panels. It makes this prototype appear to be something a rogue DIYer has put together in their garage, rather than something we’d expect to see from a multi-billion-dollar carmaker.

Photos Autohome

Hidden beneath this excess of foam will be a host of impressive features that should make the Denza Z one serious performer. According to a report from China’s Autohome the production Denza Z will pack an electric powertrain pushing out roughly 536 horsepower (400 kW). That should be enough to send it to 62 mph (100 km/h) in just over 3.0 seconds.

The Powertrain

Limited details about the powertrain are known, but it’ll presumably be a dual-motor setup borrowing a battery pack from a current BYD model. What we do know is that it will hit the market with double-wishbone front suspension and adaptive shocks, ensuring it handles just as well as it accelerates.

Despite the dodgy bodywork of this prototype, it’s safe to assume that the production model’s design will be very similar to the concept, which is a good thing.

The cabin layout should also carry over, though this test car swaps the concept’s foldaway steering wheel for a conventional one. It’s unclear whether that retractable wheel will make it to the final version, but it seems unlikely given current road safety regulations and the extra complexity it would bring.

Shopping for a new car on a tight budget in the US often feels like choosing between a rock and a base-model hard place. At $18,000, your options are basically limited to something like the subcompact Nissan Versa or, if you’re lucky, a leftover 2024 Mitsubishi Mirage gathering dust on a dealer lot.

Take that same $18,000 across the Pacific to China, though, and suddenly you’re looking at an entirely different class of vehicle. One example? Toyota’s newly launched all-electric bZ5, a compact electric crossover priced from just 129,800 yuan, or roughly $18,100 at current exchange rates. That’s less than what many used five-year-old Corollas go for in the States.

Read: New Toyota bZ5 Debuts In China And It’s Powered By BYD

It’s a shockingly low price for what appears to be a well-equipped compact crossover with modern tech and clean styling that doesn’t scream ‘budget car’ from across the parking lot.

First showcased last month but only just launched in China, the bZ5 is the production version of the bZ3C that was presented 12 months ago in Beijing. It has been brought to life through the FAW-Toyota joint venture and will be offered in four variants.

Decent Performance

Under the hood – well, under the front panel, every version of the bZ5 come equipped with a front-mounted electric motor producing 200 kW (268 horsepower) and 330 Nm (243 lb-ft) of torque. Charging is handled via a 90 kW fast-charging system, which can take the battery from 30 to 80 percent in 27 minutes.

As for dimensions, the bZ5 measures 188.2 inches (4,780 mm) long, 73.5 inches (1,866 mm) wide, and 59.4 inches (1,510 mm) tall, with a wheelbase of 113.4 inches (2,880 mm). That makes it noticeably larger overall than the bZ4X that has been renamed to bZ in America, which measures 184.6 inches (4,690 mm) long, 73.2 inches (1,865 mm) wide, and 65.0 inches (1,650 mm) tall, with a 112.2-inch (2,850 mm) wheelbase.

Trim Levels, Pricing, and Range

Toyota hasn’t done something sneaky by introducing a bargain-basement entry-level version and then jacking the prices up significantly for higher-end models. In fact, the flagship version starts at just 159,800 yuan, or approximately $22,200.

Sitting at the base of the bZ5 family is the 550 Joy, priced from 129,800 yuan ($18,100). Right above it is the 550 Pro from 139,800 yuan ($19,400), the 550 Pro Smart Edition starting at 159,800 yuan (~$22,200), and the 630 Pro, which is also available from 159,800 yuan ($22,200). Both models use BYD’s Blade LFP battery packs.

The 550-branded models have a 65.28 kWh pack offering up 550 km (342 miles) of range, while the 630 Pro uses a 73.98 kWh pack good for 630 km (392 miles). Bear in mind, though, that these are figures from the generous CLTC cycle and probably won’t be quite as impressive in the real world.

Even so, for the money, there’s not much to complain about. Not only is the bZ5 cheap compared to what we pay here in the US for even the most basic of EVs, it also comfortably undercuts the Tesla Model Y in China. Despite being built locally, prices for it start at 263,500 yuan ($36,700), meaning you could buy two bZ5s for the price of one base RWD Model Y.

It’s not as though the Toyota is lacking in features either. It includes a Navigation on Autopilot system that uses 33 sensors, including a LiDAR in high-end models. There’s also a 10-speaker JBL audio system and a 15.6-inch infotainment display. Unlike the Model Y, there’s also a digital instrument cluster.

Photos Autohome / Toyota

The BYD family continues to grow at a frantic pace, and this is the latest addition to its fleet: the Sealion 8. No, it won’t be sold in the United States, but it will be offered in several markets outside of China, including Australia and Europe. Unlike the new EVs from BYD that have attracted plenty of attention in recent months, the Sealion 8 is exclusively a plug-in hybrid (for now), but the truth is that his may only add to its appeal.

Two versions of the Sealion 8 will be offered. The first, known as the DM-i, comes equipped with a 1.5-liter turbocharged four-cylinder engine and a 19 kW battery pack. The engine is rated at 148 hp (110 kW) and 162 lb-ft (220 Nm), while an electric motor at the front axle delivers 268 hp (200 kW) and 232 lb-ft (315 Nm). BYD claims it can hit 100 km/h (62 mph) in 8.6 seconds.

Read: BYD’s 1,100HP EV Monsters Promise Insane Charging Speeds

Those in the market for something a little punchier would be wise to opt for the DM-p. It retains the same 1.5-liter engine and front electric motor, but adds a 189 hp (141 kW) and 265 lb-ft (360 Nm)motor at the rear axle. It also has a larger 35.6 kWh battery and can hit 62 mph in 4.9 seconds.

With figures like these, the Sealion 8 could sway potential buyers out of new seven-seat electric SUVs like the Kia EV9 and Hyundai Ioniq 9. With the exception of the EV9 GT, the Sealion 8 is quicker than the flagship versions of both the Kia and the Hyundai and, being a hybrid, takes range anxiety out of the equation. It will t’s a big deal in markets like Australia, where the charging infrastructure is still quite poor. It should also serve as a compelling alternative to other hybrid SUVs like the Kia Sorento and Hyundai Santa Fe.

BYD says the Sealion 8 sips just 5.6 l/100 km (42 mpg) over the combined cycle, and the larger of the two batteries gives it up to 150 km (93 miles) of electric range. It’s also equipped with the BYD DiPilot 300 suite of autonomous driving systems that includes five radars, 12 cameras, 12 ultrasonic sensors, and a LiDAR.

The Chinese automaker unveiled the homegrown version of the Sealion 8 earlier this year, where it’s known as the Tang L. Interestingly, the Chinese model is also available as an EV and uses BYD’s new Super e-Platform with a 1000-volt electrical architecture. It has a large 100.5 kWh battery yet only takes 30 minutes to charge from 0-100%. BYD has yet to say if the EV version will also be sold internationally.

BYD Tang L