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

The electric vehicle boom in China hasn’t just been about innovation or environmental consciousness. A big part of the story has been an ongoing price war that’s turned the market into something resembling a discount electronics aisle

Read: EV Discounts Hit Record High In China And That’s Bad News

The price war among Chinese EV makers has been raging for a couple of years now, no doubt playing a huge role in the uptick in EV sales across the country. However, the local government has called for an end to the practice, aiming to halt excessive competition and prevent a race to the bottom among local car manufacturers. Whether or not the war will stop remains a different question.

Regulators Push for Stability

Executives from several local EV brands were recently called to Beijing, with government officials urging them to “self-regulate”, CNBC reports. The country’s market regulator echoed the message, calling for efforts to “comprehensively rectify ‘involutionary’ competition”, a term Chinese Premier Li Qiang also used in his recent annual work report to describe the increasingly self-defeating market dynamics.

New EV and hybrid prices in China have been cut repeatedly in the last two years, as local automakers scramble for market share. The China Association of Automobile Manufacturers weighed in, warning that “disorderly price wars intensify vicious competition.” The group also called out BYD, without naming it directly, noting that “a certain automaker has taken the lead in launching significant price cuts and many companies have followed suit, triggering a new round of ‘price war’ panic.”

Xpeng Boss Has His Say

According to CNBC, China’s Ministry of Industry and Information Technology plans to increase regulation of non-productive competition and looks to enforce laws promoting fair competition. However, some are doubtful that this will work and suspect that the price wars will only intensify.

Xpeng’s chief executive, He Xiaopeng, doesn’t sound too optimistic about a ceasefire. In his view, “competition will become more intense in the next five years,” describing the current situation as merely an “appetizer” for what’s ahead. Analysts at Nomura share that perspective. Speaking to CNBC, they said that with an ongoing oversupply of vehicles, the worst of the pricing wars may still be on the horizon.

Over the past two years, the average retail price of a new car in China has dropped by around 19 percent, now sitting at roughly 165,000 yuan, or about $22,900. The question is whether those low prices can last without breaking something in the process.

There’s no shortage of over-the-top SUVs these days, but the Yangwang U8 manages to stand out in a sea of excess, and not just for its wild features. It recently even caught the attention of California Governor Gavin Newsom, who seemed suitably impressed.

Apparently, though, BYD’s high-end sub-brand decided the original U8 wasn’t quite lavish enough, because now there’s an even longer and more luxurious version named the Yangwang U8 L.

Read: Watch BYD’s Yangwang U9 Jump Road Spikes (And The Shark)

According to new details out of China, the U8 L rides on a massive 3,250 mm (127.9-inch) wheelbase, which is 200 mm (7.8 inches) longer than the base model. This extra length makes room for a custom 2+2+2 seating configuration, bringing a touch of private-jet layout to your daily school run or mountain retreat. Unfortunately, Yangwang hasn’t shared interior photos yet, so we’ll have to imagine how those second-row thrones might look once you slide in.

Longer, Flashier, Shinier

However, some obvious changes have been made to the exterior of the new flagship U8. For starters, the Yangwang badge on the front grille can be finished in 24-karat gold, as can the emblem at the rear. The automaker’s designers have also crafted new 23-inch forged wheels for the U8 L that have floating center caps, just like a Rolls-Royce. These new wheels are wrapped in wider rubber than the standard model.

Around back, Yangwang has cleaned up the design by removing the spare wheel carrier. The result is a sleeker, more upmarket profile that dials down the rugged SUV cues and turns up the executive limo vibe.

Same Power, Same Party Tricks

Underneath, the U8 L doesn’t mess with the formula. China’s Autohome reports that the U8 L shares the same drivetrain as the standard U8: four electric motors, a 2.0-liter turbocharged range-extender, and a 49.05 kWh battery pack. The numbers are hefty at 1,180 hp (880 kW) and 944 lb-ft (1,280 Nm) of torque, and the party tricks remain intact. That includes the ability to float in water and execute tank turns, thanks to each wheel getting its own motor.

Yangwang provided the world a glimpse at the U8 L at the recent Shanghai Auto Show, with production scheduled to kick off later this year. Prices could start at around 1.5 million yuan, or the equivalent of around $205,000 at current exchange rates. That’s a lot for a Chinese-built SUV, but it’s a relative bargain compared to a Rolls-Royce Cullinan that starts at over $400,000 in America.

That’s no small sum for Chinese-built SUV, but compared to a Rolls-Royce Cullinan, which starts at over $400,000 in the U.S., it almost feels like a deal, especially if your idea of a bargain includes gold trim and amphibious capabilities.

As electric vehicles continue their steady march toward becoming a dominant force on global roads, one country has pulled far ahead of the rest- and it didn’t happen by accident.

By now, it’s widely understood that Chinese automakers have taken a commanding lead in the EV race, while many Western legacy brands are still scrambling to catch up. It’s also well known that Chinese battery companies are driving much of this momentum, leading with rapid innovation and serious scale. But how did they manage to surge ahead so dramatically in such a short time? The answer is fairly straightforward: money. More precisely, billions in government subsidies every single year.

Read: CATL’s New EV Batteries Give You A Full Charge In Minutes

Fresh data from Nikkei Asia shows just how significant this financial support has been. Contemporary Amperex Technology Co., better known as CATL, the world’s largest EV battery manufacturer, has been raking in the kind of government funding that would likely make Elon Musk reconsider his next big tax tweet.

While CATL has not reveal full-year details of the government help it received in 2024, it has disclosed that in the first half it got 3.84 billion yuan ($532 million) in state subsidies. This made it one of the largest beneficiaries of the Chinese government’s policy, only behind state-owned oil company Sinopec, which received 4.06 billion yuan ($563 million). Importantly, however, that’s how much Sinopec received for the full 2024 calendar year, whereas CATL’s figure is only for the first six months of 2024 – thus, it total, the latter’s figure far exceeded Sinopec’s.

The subsidies CATL has received appear to have jumped in the second half of 2024. As noted by Nikkei Asia, in 2023, it disclosed its subsidies under ‘other income’ in its financial reports. In 2023, ‘other income’ totaled 6.26 billion yuan (~$868 million), and of this, 5.72 billion yuan (~$793 million) were subsidies. In 2024, its full-year report revealed 9.96 billion yuan (~$1.3 billion) in ‘other income,’ but didn’t specify how much of this was subsidies.

Of course, it’s not just CATL that is benefiting from this practice Full-year data from 2024 reveals that BYD received almost 3.8 billion yuan (~$527 million) in subsidies last year, no doubt playing a significant role in the firm’s ability to release so many new models so frequently.

Great Wall Motor was the fourth-largest recipient of subsidies, earning a touch under 3 billion yuan (~$416 million). SAIC Motor closely trailed GWM, receiving more than 2 billion yuan (~$277 million) in subsidies for the year.

All this answers the questions we posed at the beginning. There’s no secret sauce at play here; the Chinese managed to leapfrog the competition and undercut their rivals at the same time simply due to immense state help. No wonder, then, that the US and the EU are seething as they watch their own brands trying to compete in an uneven playing field.

As automakers worldwide scramble to future-proof themselves in the electric era, China has been comfortably in the lead, cranking out next-gen EVs packed with cutting-edge tech and advanced battery systems one after the other at record pace. But behind the buzz and impressive new models, there’s a financial reality dragging at the wheels: most of China’s EV brands are still burning cash, not banking it.

Read: Seres 5 Crushes Tesla Model Y In Comfort But Loses The Battle Where It Counts

At last count, there were around 50 EV brands competing for space on Chinese roads. Out of those, just three of them are thought to be profitable. These include BYD, Li Auto, and Seres. Despite this, brands continue to offer generous discounts to grow their footprint, forgoing financial security in the pursuit of sales.

Discounts Keep Climbing

According to a JP Morgan study cited in a South China Morning Post report, industry-wide discounts averaged a record high 16.8% in April, up from an already steep 16.3% in March. The China Passenger Car Association puts the average discount for 2024 at 8.3%. To top it off, average EV prices were trimmed by 10% back in December. That’s not just aggressive, it’s unsustainable.

Last year, the difference between the selling price of an EV and an automaker’s costs, including raw materials, labor, and logistics, known as the vehicle margin, dropped to 10%. This is down from approximately 20% just four years ago. Analysts believe that most of China’s smaller EV manufacturers will be forced out of the market or will be acquired by larger rivals over the next couple of years.

“Nearly all of them were the victims of price competition,” said Phate Zhang from CnEVPost. “But if any of them chooses to exit the price war, their sales will decline and make it more difficult to post a net income.”

Looking Beyond China’s Borders

One potential lifeline is exports. Chinese carmakers have begun shipping more EVs abroad, where they can command better margins. According to JPMorgan’s Nick Lai, international sales are proving to be more profitable and could provide the breathing room these companies need.

“Price competition has turned fiercer this year. Unfortunately, we have not seen a jump in [EV] demand so far,” Lai noted. The domestic market, while massive, isn’t growing fast enough to offset the steep discounts.

Still, exports are trending upward. In the first four months of 2025, EVs made up roughly 33% of China’s total vehicle exports, up from about 25% over the past two years. It’s not a total solution, but it’s a glimmer of hope for brands looking to survive the increasingly brutal home turf battle.

Seagulls have a nasty reputation for swooping in and stealing your lunch, and BYD’s Seagull has its eyes on Western carmakers’ slice of the budget EV market pie. Renamed the Dolphin Surf for its launch in Europe, the sub-Dolphin-sized electric city car is nowhere near as cheap as it is in China, where it costs around $10,000, but it’s well priced, well equipped and is sure to cause the likes of Fiat and Citroen a major headache.

The 3,990 mm (157.1 inches) Dolphin Surf is on sale in Germany now priced at €22,990-30,990 ($26,100-35,100), but a launch promotion drops the entry price to €19,990 ($22,700) until June 30, putting it well below the €23,300 ($26,400) starting price of a Citroen e-C3.

More: BYD’s SUV Rips Off Genesis So Hard You’ll Do A Double Take

Even at the discounted price, the BYD is more expensive than Dacia’s base Spring, which starts at €16,900 ($19,200), but you pay a price for saving on the price. The Romanian car is much slower and much stingier on the gadget count, not even featuring a screen and taking 19.1 seconds to reach 62 mph (100 km/h).

All three Dolphin Surf trims – Active, Boost, Comfort – get a 10.1-inch touchscreen and heated and electrically adjustable mirrors. Step up to the €26,990 ($30,600) Comfort and you add rain-sensing wipers, bigger (16-inch) wheels and a power driver’s seat. Top-spec Comfort goes two steps further, bringing a 360-degree camera system, wireless phone charging, heated seats, LED lights and electrically folding mirrors.

Powertrain and Range

Power, range and charging speeds vary between those trims. The Active and Boost get an 87 hp (88 PS / 65 kW) motor, but the cheaper car has a tiny 30 kW LFP battery and slow 65 kW max charge rate. Boost features a 43.2 kW power pack and can charge at 85 kW (both take 30 mins to go from 30-80 percent), but because the Active is lighter it gets to 62 mph in 11.1 seconds instead of 12.1 seconds.

Comfort sticks with the same BYD Blade battery and charge speed as the mid-spec Boost, but pairs it with a 154 hp (156 PS / 115 kW) motor that drops the 62 mph sprint to 9.1 seconds. It also drops the range, but by exactly how much isn’t very clear.

Also: Dacia’s Practically Giving Away The Spring EV At €79 A Month With No Downpayment

BYD is only quoting WLTP urban figures for now rather than the WLTP combined figures that are more useful when making comparisons with other EVs, though UK’s Auto Express reckons the three models return 137, 200 and 193 miles (221, 322, 311 km) combined.

The first cars will be shipped from China, but eventually BYD will build the Dolphin Surf at its new plant in Hungary. Europe’s carmakers, including Stellantis and VW are all working on even more affordable EVs, and looking at what BYD is offering here, they can’t afford to get it wrong.

BYD

If you thought Toyota couldn’t produce an affordable EV, think again. Well, at least if it’s made in China and relies on BYD for its batteries. Toyota is slowly catching up with the EV game, and its latest effort is the bZ5, a new electric crossover fastback developed in China. Manufactured by the FAW-Toyota joint venture, it features BYD-sourced battery packs to power its electric drive.

More: Toyota’s New Electric Flagship Sedan Takes A Shot At Tesla Model S

The bZ5 is essentially a rebranded version of last year’s bZ3C, which itself evolved from the bZ Sport Crossover Concept introduced back in 2023. By adopting the bZ5 name, Toyota seems to be aiming to position this new EV above the entry-level bZ3 sedan, but just below the upcoming bZ7 flagship.

Design That’s Familiar, But Still Fresh

The exterior design sticks with what Toyota’s been rolling out lately. That includes the usual hammerhead front end, subtle cladding around the wheel arches, a sloping roofline, and full-width taillights. The bZ5 mixes sedan, fastback, and crossover elements, all riding on 21-inch alloy wheels.

Inside, there is a 15.6-inch touchscreen, a digital instrument cluster mounted close to the windshield, and a floating center console. The front seats can transform into a bed, which comes in handy in combination with the nap mode of the infotainment system.

Other perks include a panoramic sunroof, a 10-speaker JBL audio system, a fragrance dispenser (yes, really), nine airbags, and a full suite of Level 2 ADAS for urban autonomy.

Powertrain and Platform

Measuring 4,780 mm (188.2 inches) long with a wheelbase of 2,880 mm (113.4 inches), the bZ5 shares similar dimensions with many electric crossovers in China, including the Tesla Model Y. The model is built on Toyota’s e-TNGA platform, which underpins the entire bZ lineup.

But unlike its siblings, the bZ5 comes with BYD’s Blade LFP battery packs, offering options with capacities of 65.28 kWh and 73.98 kWh. According to Toyota, range estimates for the CLTC cycle are 550 km (342 miles) and 630 km (392 miles) respectively. Need a quick boost? A 30-80% charge can be completed in just 27 minutes.

More: Toyota’s Cheapest EV Ever Costs $15,000, Gets 10,000 Orders In 60 Minutes

Both battery options are combined with the same fully electric powertrain generating 268 hp (200 kW / 272 PS) and 330 Nm (243.4 lb-ft) of torque.

Affordable, Yet Advanced

The Toyota bZ5 is already available for pre-order in China, with prices starting at 130,000 rmb ($18,000), which is roughly the cost of a Chinese-spec Toyota Corolla Cross. In comparison, the Tesla Model Y starts at 263,500 rmb ($36,500) in the same market, making the bZ5 an attractive (and much more affordable) option for those looking to step into the world of electric crossovers.

FAW Toyota

Electric vehicle sales in Australia are shifting fast, and the usual frontrunners are no longer guaranteed a spot at the top. As more buyers look beyond the legacy names, newer players are gaining ground, especially those with sharper price tags and more features for the money.

In 2023 and 2024, the Tesla Model Y was comfortably the best-selling EV in Australia. However, new options from Chinese and Korean brands have led to a massive slump in local sales of the Model Y, so much so that in April, it was only the 8th best-selling EV in the country. Evidently, it’s not just in Europe where Elon Musk’s company is falling out of favor.

Read: Tesla Couldn’t Even Sell Its Model Y Launch Editions As Hundreds Are Sitting Unsold

Storming in as the best-selling EV by far in Australia last month was the BYD Sealion 7, according to a report from Carsguide. It is the latest addition to BYD’s Ocean series of models and undercuts the Model Y on price, starting at AU$54,990 (~$35,400) and topping out at AU$63,990 (~$41,200), compared to the new Tesla that starts at AU$63,400 (~$40,800) and AU$73,400 (~$47,200) for the flagship version. Last month, 734 Sealion 7s were sold across the country.

Next up is the MG 4. While it’s been around for a couple of years now, the electric hatchback remains popular with 363 units sold in April. This positioned it just ahead of the BYD Atto 3, with 355 sold. Kia’s newly-launched EV5 and EV3 have also been well-received by local shoppers, with sales of 342 and 336, respectively. The BYD Seal then shifted 325 units while the new Geely EX5 sold 325 examples.

Then there’s the Tesla Model Y. A total of 280 were sold last month, positioning it slightly ahead of the Tesla Model 3 with 220 sales. Rounding out the top 10 was the BYD Dolphin with 216 examples finding new homes.

Now, before you start thinking recent sales represent the imminent collapse of Tesla, it’s worth noting that throughout April in Australia, Tesla was selling a mix of the outgoing Model Y and the brand new version. As we can see from the official page, Tesla still has a healthy inventory of the old crossover.

Many shoppers are likely holding off on placing an order until the new Model Y lands in earnest, which will happen over the next couple of months. Nevertheless, April’s results will likely have some local Tesla executives a little worried.

BEST SELLING VEHICLES AUSTRALIA

Wider Market Trends

Australia’s total new car sales declined in April. A total of 90,614 new vehicles were sold across the country last month, representing a decline of 6.8% compared to the same month in 2024 and quite a dramatic fall from the 108,606 new cars sold in March.

EV SALES AUSTRALIA

In a sea of reveals at the Shanghai Auto Show, it’s easy to miss a few standout vehicles, especially with the rapid-fire pace of new model debuts. But once the dust settles, a few interesting names float to the surface, one of them being the new BYD Sea Lion 06, a sharp-looking electrified SUV with a front end that feels like it wandered out of a Genesis design studio.

More: Denza Z Is An Electric 911 Rival With A Fold-Away Steering Wheel

The split LED headlights look straight out of the Korean luxury brand’s playbook, flanking a grille-free nose that closely resembles the refreshed Genesis GV60. But the Sea Lion 06 doesn’t go in for sleek coupe-SUV theatrics. Instead, it opts for a more upright SUV stance that gives it a bit more presence on the road, and maybe a bit more practicality too.

Design Details with Familiar Influences

A few other styling cues stand out, like the wraparound greenhouse and a set of full-width taillights that evolve the design language of the BYD Seal sedan. There’s even a nod to Bentley in the way the rear light bar is shaped, nothing over-the-top, but enough to suggest BYD’s designers have been paying attention to the high-end crowd.

Step inside, and it’s a familiar sight for anyone who’s looked at a modern Chinese EV. The centerpiece is a 15.6-inch infotainment screen mounted to the center of the dash, a setup that’s practically standard at this point. What does break up the usual formula is the floating center console, fitted with metallic-look switchgear that feels like another subtle Genesis reference. As expected from BYD, the Sea Lion 06 comes equipped with its in-house “God’s Eye” advanced driver assistance suite.

Two Powertrains, One Look

BYD

Underneath, the SUV rides on BYD’s updated e-Platform 3.0 Evo. Buyers can choose between a fully electric version or a plug-in hybrid (DM-i). The EV comes in both single-motor rear-wheel drive and dual-motor all-wheel drive configurations. Meanwhile, the plug-in hybrid pairs electric drive with a 1.5-liter gasoline engine. Despite these different drivetrains, the exterior remains identical across variants, BYD didn’t even tweak the wheel design for the sake of differentiation.

More: BYD Changes Course After Realizing Not Everyone Is Ready For EVs

As suggested by its name, the BYD Sea Lion 06 is positioned under the Sea Lion 07, although the difference in size between them is quite small. More specifically, the 06 measures 4,810 mm (189.4 inches) long, which is only 20 mm (0.8 inches) shorter than the 07. Still, the 2,820 mm (111.0 inches) wheelbase of the 06 is a 110 mm (4.3 inches) shorter than that of the 07.

Even so, the Sea Lion 06 has a bigger footprint than rivals like the Tesla Model Y and the Genesis GV60, and its shape suggests it might be more suited to family duties than some of its sleeker competitors.

As for pricing, BYD is aiming squarely at the value segment. In China, the Sea Lion 06 is expected to land between ¥160,000 and ¥200,000, which translates to roughly $22,000 to $27,500. Whether this electrified SUV makes its way to markets outside China, such as Europe, remains to be seen.

James Holtz, regional sales manager at RIDE Mobility, talked with STN publisher and president Tony Corpin at the Advanced Clean Transportation Expo conference about the company’s focus on innovation and safety with their new school bus models.

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