The new battery delivers 400 Wh/kg energy density.
Mass production is planned to begin next year.
BYD, SAIC, GAC, and CATL are developing similar packs.
Solid-state batteries have been “just around the corner” for what feels like an entire EV generation. Now, they might actually be arriving. In the third quarter of this year, China’s Changan will begin fitting its new solid-state packs to robots and EVs, with full mass production slated for 2027.
According to Chinese media, Changan claims its new solid-state battery has an energy density of 400 Wh/kg, and EVs using it will be able to travel upwards of 932 miles (1,500 km) on a single charge. While you could argue that this much range borders on excessive, it would make future Changan models far better suited to long road trips through remote areas where charging infrastructure remains sparse.
Breakthrough Energy Density
The pack is called the Golden Bell. Aside from being very energy-dense, it is said to be 70 percent safer than a conventional EV battery and, because this is 2026, it also uses artificial intelligence for remote diagnostics. Smarter batteries, apparently, are part of the plan.
Changan will build these units under its new Jingzhongzhao solid-state battery brand. The company intends to manufacture fully solid-state packs while also producing liquid and semi-solid-state batteries that rely on a liquid electrolyte.
China’s Solid-State Push
It is not alone. Other Chinese brands are also edging closer to making solid-state batteries mainstream. Earlier this year, Dongfeng Motor began testing its own solid-state battery in extreme cold weather. It has an energy density of 350 Wh/kg and a claimed range exceeding 620 miles (1,000 km). It also plans to roll them out in production cars this year, aiming for September.
BYD, Chery, SAIC, GAC, and CATL are all chasing similar breakthroughs. So are legacy names such as Mercedes-Benz, VW, BMW, Toyota, Nissan, Hyundai, and Honda. After years of promising headlines and laboratory milestones, solid-state batteries may finally be edging toward something tangible. If they deliver on even half of these promises, combustion engines will have one more reason to feel nervous.
Rescuers couldn’t open SU7’s electric door releases as it burned.
Eyewitnesses tried desperately to smash the driver’s side window.
China will ban electric door releases like the SU7’s from 2027.
An official investigation into the death of a man who crashed his Xiaomi SU7 in China last year has confirmed details previously reported by local media. The findings underscore how critical basic mechanical access can become in seconds. Authorities concluded that the 31-year-old died after being unable to open the electrically operated doors once the electric sedan caught fire.
While this case involves a Xiaomi, concerns about electronically actuated door systems have been debated across the industry and in global markets for years. This isn’t just a Tesla issue.
The crash occurred at approximately 3:15 a.m. on October 13, 2025, in Chengdu, reports Carnewschina. The Xiaomi driver, identified simply as Deng, was allegedly driving under the influence of alcohol at the time and slammed into another vehicle on Tianfu Avenue South before jumping over the central divider and bursting into flames.
Timeline Of The Crash
According to forensic findings cited by the Chinese magazine Caixin, the SU7 reached 203 km/h (126 mph) just three seconds before the crash. It then slowed to 167 km/h (104 mph) after striking the other car and was traveling 138 km/h (86 mph) when it hit the divider.
Harrowing footage captured in the immediate aftermath showed bystanders attempting to smash the driver’s side window and open the door in an effort to save him, but without success.
Why The Doors Wouldn’t Open
Investigators concluded that the doors could not be opened from the outside because the fire caused the low-voltage system to shut down, disabling the door handle release function. The report added that the SU7 has no mechanical latches accessible from the outside and relies solely on electric release buttons.
Xiaomi shares plunged nearly 9% after a fatal crash involving its SU7 electric car, Bloomberg reports
According to the outlet, a 31-year-old driver in China collided with another vehicle, crossed into the opposite lane, and the car caught fire. Witnesses tried to pull the man… pic.twitter.com/yPQ70FoKXN
The Xiaomi also uses electric release buttons inside the cabin. Although it is equipped with mechanical emergency releases, locating and operating them while disoriented after a crash would not be straightforward.
Regulatory Response In China
This fatal crash, along with others, has prompted regulators in China to ban electronic door handles on EVs. The new rule will take effect on January 1, 2027. It will require exterior handles that provide a handhold of at least 60 mm by 20 mm (2.36 inches x 0.79 inches), ensuring they can be used by rescuers in an emergency. In addition, mechanical releases inside the vehicle must include clear signage explaining how to open them during an emergency.
AUDI E5 Sportback price cut by $4,370 to stir up demand.
Total wagon deliveries reached just 7,070 units since launch.
New brand abandons Audi’s iconic four rings in China.
When Audi decided to launch a new AUDI brand just for China, complete with no four-ring badge and a bold new design language, it looked like a confident reset. Fast forward a few months and there’s another reset, this time to the price, which has been slashed in the face of abysmal sales.
Deliveries of the E5 Sportback, AUDI’s first model under its SAIC joint venture, began in August 2025, with prices ranging from ¥235,900 to 319,900 yuan (equal to around $34,300-$46,600 at current rates). On paper, it ticked plenty of boxes and had the potential to snare Chinese buyers who are increasingly picking domestic brands over legacy Western luxury ones. But things haven’t gone according to plan.
Now Under $30,000
Total deliveries since launch have only reached 7,070 units, with just 420 cars sold in January. So AUDI has rolled out a limited-time discount, slicing ¥30,000 ($4,370) off the already low sticker, bringing the entry price down to ¥205,900, or just under $30,000, Car News China reports.
Buyers get ¥10,000 ($1,460) in purchase tax compensation, ¥10,000 yuan in cash discount, and ¥10,000 in trade-in subsidy. Financing sweeteners include a five-year plan with zero interest, or a seven-year low-interest option if you only take the purchase tax handout.
Tough Competition
Price-wise, that puts the E5 Sportback right in the mix with the Zeekr 007 GT and slightly below the Xiaomi SU7, a car bought over 250,000 times last year. That’s strong competition in a market that does not lack for shiny new electric sedans and fastbacks.
Spec-wise, the E5 isn’t exactly junk. It has a long 2,950 mm (116.1 inches) wheelbase, up to 776 hp (787 PS / 579 kW) and 480 miles (773 km) of CLTC range, depending on the spec chosen. It also comes with LiDAR, three radars, 11 cameras, and 12 ultrasonic radars on every model, and the interior is dominated by a 59-inch, pillar-to-pillar screen.
Why Aren’t Buyers Responding?
But for some reason, the E5 Sportback just isn’t hooking Chinese drivers in. That’s despite Audi claiming last September that it had scored 10,000 pre-orders in only 30 minutes, and the model recently being named China Car of the Year. The price cut is only supposed to last until March 31, but we can imagine Audi extending it if sales don’t pick up.
Audi isn’t the only Western premium brand forced to cut prices to shore up sales in China. BMW and Mercedes have also been forced to reduce MSRPs by as much as 10 percent to compete in a market so aggressive that less than a third of dealers turned a profit last year, according to the same report.
The new Freelander will be based on Chery’s T1X platform.
JLR is expected to sell the SUV in both EV and EREV guises.
Freelander becomes a sub-brand with multiple models.
Land Rover is not only working on a smaller Defender, but it is also dusting off the Freelander badge for something altogether more targeted. This time, the name returns on an all-new, rugged SUV built specifically for China, and if these spy shot-based renderings are on the money, it will not be shy about looking the part.
The project is being handled by the Chery Jaguar Land Rover joint venture, better known as CJLR. Underneath, the new Freelander will sit on Chery’s existing T1X platform, which already underpins various Jaecoo, Omoda, and Chery SUVs. In plain terms, that means lower development costs and a much quicker route to market. Reinventing the wheel is expensive. Borrowing one from the parts bin is not.
Interestingly, Land Rover won’t simply revive the Freelander name for a single model. Instead, it is spinning the name into its own sub-brand, with the potential to spawn several models over time. The first of these SUVs has been spied testing under heavy camouflage, leading to these detailed renderings from Nikita Chuyko for Kolesa.
Based on recent spy shots, the first Freelander looks reassuringly boxy, exactly what you would expect from something wearing a Land Rover badge. Up front, it appears to feature slim headlights with simple DRLs, flanked by blacked-out split grilles and capped off with a hood that carries a noticeable bulge.
Similarities could also be shared with the larger Defender, particularly with the smooth profile of the side doors and the blacked-out roof and pillars. Like the previous Freelander, this new model features angled C-pillars painted in the same shade as the lower body.
The rear styling may prove more divisive. The renderings show small taillights mounted just above the bumper, which gives the back end a slightly awkward stance. Here’s hoping the lights of the eventual production model are positioned a little higher on the fascia. If not, it risks drifting into the same visual territory that has drawn mixed reactions for the current Hyundai Santa Fe.
Technical details about the new Freelander have not been confirmed, but it’s expected to be offered in both battery-electric and EREV guises. Production will be handled by the CJLR plant in Changshu.
Spy Shots: Chery-JLR Freelander SUV for China
Freelander is a new brand under Chery-JLR. The Chinese name is 神行者 (Shén Xíngzhě). Freelander will manufacture various SUVs based on Chery platforms.
The spy shots show a boxy off-road-style SUV during winter tests in Northern… pic.twitter.com/IduwHRG5vw
Back in 2013, Tesla flirted with the idea of battery-swapping for its EVs, even demonstrating a system that could replace a Model S battery in as little as 90 seconds. It was an impressive showpiece, but the company ultimately chose not to commercialize the concept. Nio, meanwhile, saw potential where Tesla stepped back. The Chinese startup embraced battery swapping and went on to build the largest EV battery-swapping network in the world.
Just how popular has Nio’s battery-swap service become? On February 21, Nio owners carried out a staggering 175,976 battery swaps across China in a single day. That figure translates to roughly one Nio having its battery changed every half a second.
This record was set on the second day of the Lunar New Year, typically the busiest travel day of the year in China.
How Wide Is Nio’s Network?
Nio currently operates more than 8,600 charging and battery-swapping stations across China. The network spans more than 550 cities and includes highway routes linking 16 of the country’s major urban centers. The company has also begun rolling out charging stations in Europe.
The Chinese electric car startup is currently on its fourth-generation swapping stations, with the latest version launched in mid-2024. The original stations could store just four to five batteries at a time. In contrast, the fourth-generation sites can hold 23 battery packs and handle up to 480 swaps per day. Each swap takes 2 minutes and 24 seconds, which is less time than refueling a combustion-powered car.
Soon, it will not just be Nio owners pulling into those swap bays. The company has struck agreements with Geely, Chery, FAW, GAC, and Changan to share its battery-swapping technology, opening the network to a much broader slice of China’s car market.
A teaser suggests a sleek but fairly traditional design.
Production could begin in China for the Russian market.
The Russian car industry looks very different from the one that existed before the invasion of Ukraine four years ago. As Western automakers made a swift exit after the war erupted, Chinese brands moved in just as quickly, expanding their presence and absorbing a sizable chunk of the market. A few domestic names are also resurfacing, including one of its most Volga.
The Volga name rose to prominence in the 1950s as a series of executive cars built and sold in Russia by local firm GAZ until 2012, when production ended. Back in its heyday, the Volga wasn’t something you simply drove. It was what you were driven in if you held the right title in the Soviet hierarchy. That alone turned it into a cultural fixture.
Now, after more than a decade on ice, the name is finally set to return, having initially been slated for a revival in 2024.
Volga, now under the umbrella of China’s Changan, presented three different vehicles in May 2024, known as the K30, X5 Plus, and K40. The trio included two crossovers and a sedan, each based on existing Changan vehicles sold in China. The plan was to build them in China and ship them to Russia for final assembly, with market launch targeted for late 2024.
For whatever reason, that rollout never materialized. Now, however, the Chinese-owned Volga appears ready to try again, launching a new Russian-language website and releasing a pair of teasers previewing its first model.
The vehicle shown in the teaser resembles one of the crossovers presented in 2024, though with subtle visual changes. A side-profile sketch suggests a conventional SUV silhouette, complete with a large grille, squared wheel arches, and a rear design with taillights that faintly echo the Audi Q8. Reports indicate it will be joined by two additional models.
A separate teaser for the cabin was also released, showing a flat-bottomed steering wheel, a digital instrument cluster, and a large central infotainment screen. In general, it looks quite conventional, which in this context may be exactly the point.
Range extenders are enjoying a bit of a renaissance at the moment. Early examples like the Chevrolet Bolt and BMW i3 gave the world a preview of what these powertrains were capable of, but they largely fell out of favor in the middle of the last decade as carmakers shifted their focus to fully electric models.
Things have changed. Thanks in large part to several major Chinese manufacturers, range-extender EVs are becoming more common and are even being adopted by legacy brands like Ford and Hyundai. Last year, Leapmotor, Stellantis’ Chinese partner brand, joined the movement by adding a range-extender option to its mid-size C10 SUV, and we had the chance to live with it over the Christmas period.
QUICK FACTS
› Model:
2026 Leapmotor C10 REEV Ultra Hybrid
› Price:
AU$47,888 (US$33,500) as tested
› Dimensions (L x W x H):
186.5 x 74.8 x 66.1 in (4,739 x 1,900 x 1,680 mm)
› Wheelbase:
111.2 in (2,825 mm)
› Curb Weight:
1,950 kg (4,299 lbs)
› Powertrain:
1.5-liter four-cylinder / Single electric motor
› Output:
212 hp (158 kW) / 236 lb-ft (320 Nm)
› 0-62 mph:
8.5 seconds
› Transmission:
Single speed
› Efficiency:
14.5 kWh/100 km, 6.1 l/100 km as tested
› On Sale:
Now
SWIPE
In markets where charging infrastructure is still patchy and long-distance driving is simply part of life, the range-extender idea holds up. You get the smooth, instant response of an EV without planning your schedule around charging stops.
On paper, the C10 REEV arrives at the right moment, pitching itself as sensible rather than compromised. In reality, while the powertrain delivers on that promise, the experience is undercut by a collection of nagging tech issues that chip away at its appeal.
What Changes With The REEV?
Photos Brad Anderson/Carscoops
The first Leapmotor I tested last year was the regular C10 EV, equipped with a 69.9 kWh battery and a rear-mounted electric motor with 215 hp and 236 lb-ft (320 Nm). The C10 REEV is quite a bit different.
Under the hood sits a 1.5-liter four-cylinder that never drives the wheels, serving solely as a generator to charge the battery pack. That battery is a 28.4 kWh unit powering a rear-mounted electric motor rated at 158 kW (212 hp) and 320 Nm (236 lb-ft) of torque.
Leapmotor says the C10 REEV can travel up to 1,150 km (715 miles) between top-ups and charges, average 15.2 kWh/100 km in electric operation, and has a quoted fuel consumption of 0.9 l/100 km (261 US mpg).
Visually, there’s nothing differentiating the C10 REEV from the EV. That means it looks as uninspiring as the EV, with not even the slightest bit of personality.
How’s The Interior?
Photos Brad Anderson/Carscoops
In the cabin, it’s also very familiar. Leapmotor has done exactly what Tesla popularized with the Model 3 and Model Y, opting for an ultra-minimalist design that some people will love, but others will hate.
A 14.6-inch infotainment display sits at the center of the dash running on Leapmotor’s in-house operating system, which uses Android as its base. While we wouldn’t go as far as to describe the C10’s infotainment as good as Tesla’s, it’s surprisingly not far off.
The tablet-like design doesn’t require a steep learning curve to get used to, and the display is very responsive to the touch. Admittedly, some of the settings hidden in the menu are a little too comprehensive, and it can be difficult to find things while on the move. Fortunately, there is a swipe-down notification menu that can be configured with dozens of different toggles for important vehicle functions, ensuring they’re never more than a couple of touches away.
Photos Brad Anderson/Carscoops
Frustratingly, the display does not support smartphone mirroring, so there’s no Android Auto or Apple CarPlay, leaving me to place my phone in the cupholder for navigation. Additionally, the quality of the reversing camera is shocking and not up to modern standards. The infotainment system also needs 15 seconds to load after the car is turned on, by which time I’d often already reversed without the camera loading and started driving away.
All of the materials used feel pleasantly plush, particularly the soft-touch leather adorning the seats, door panels, dashboard, and center console. However, I found that the leather marked very easily, so while it looks nice, it doesn’t stay clean for very long.
Entering and exiting the C10 REEV also turned into a bigger hassle than it should have been. In the first C10 I tested, I easily synced my phone with it and used it as the key. When I tried to use the Leapmotor app on my phone to do the same with this C10, it refused to work. A bit of digging suggests this could have been because the VIN had already been assigned to another device. Apparently, resetting the infotainment system should have fixed it. It didn’t.
Do Small Annoyances Add Up?
This left me with no choice but to use the silly keycard for my two weeks with the C10 REEV. Not only is a keycard inferior to a traditional key in every single way, but it also doesn’t have any buttons, meaning I had to tap the NFC logo on the driver’s side mirror every time I wanted to lock or unlock it. It doesn’t even have a proximity locking/unlocking function, so when unloading things out of the passenger side or the trunk, I’d have to walk back around to the driver’s mirror and tap it.
I get it, keycards are in fashion (thanks, Tesla…), but they are just not nice to use.
My issues didn’t stop here. The air conditioning is genuinely disappointing. With the temperature turned down to its lowest setting, the AC on, and the fan speed at full, the C10 would only blow out mildly cool air, equivalent to what most cars do with the AC turned off and just the fans running. In the Australian summer, that was very annoying.
Set those issues aside, and the cabin of the C10 REEV is a nice place to spend time. It’s spacious, and there’s plenty of room in the rear, too. Cargo space is also good, as it can swallow up to 546 liters (19.2 cubic feet) or 1,375 liters (48.5 cubic-feet) with the rear seats folded down.
Smooth Power
Photos Brad Anderson/Carscoops
Out on the open road, I quickly grew quite fond of the range-extender powertrain, and actually preferred it to the more traditional full-EV version.
As the engine is only ever operating in the background to charge the battery, it doesn’t intrude on the driving experience at all. In fact, even when I had the Leapmotor in the mode that prioritizes the engine charging the battery, the four-cylinder barely ever revved to beyond 2,000 rpm, so it couldn’t be heard. Around town, it’ll happily sit at less than 1,200 rpm, remaining completely silent while the instant power and torque of the rear-mounted electric motor make the REEV drive just as smoothly as an EV.
I ended my two weeks with the C10 REEV averaging 14.5 kWh/100 km, while fuel consumption sat at 6.1 l/100 km (38.5 US mpg).
On The Road
Admittedly, the Leapmotor isn’t particularly fun or engaging to drive. It takes 8.5 seconds to reach 100 km/h (62 mph) and isn’t the type of SUV that likes to be driven in a sporty manner. Drive it calmy, and it does the job just fine.
As I found in my first test of the all-electric C10, the driver assistance systems leave a lot to be desired. The SUV includes both adaptive cruise control and active lane centering, neither of which works well. Even if the adaptive cruise is set and the C10 detects a vehicle ahead, it’ll struggle to maintain a consistent distance from it, repeatedly accelerating and decelerating to hold position.
The lane centering also needs improvement. I spent hours on end sitting on well-marked highways during my time with the Leapmotor, and it’d consistently ping-pong between the lines. That’s unacceptable in this day and age.
The C10 REEV also has several other overactive sensors, like the driver attention monitoring system and speed limit warnings. Fortunately, these can be easily disabled in the swipe-down menu, and I didn’t find them to be as intrusive as I did when I first tested the C10 six months ago.
Ride quality is good most of the time, but there were a few instances when it felt like I hit the bump stops after going over speed bumps a little too fast, which most cars would have easily dealt with. The steering is exceptionally light, particularly in the Comfort setting, but it can be configured to feel slightly firmer in Sport mode.
Verdict
Photos Brad Anderson/Carscoops
The Leapmotor C10 REEV has promise. The trick hybrid powertrain works well, combining all of the benefits of a traditional EV like smoothness and instant power, without any of the downsides like range anxiety, particularly in Australia, where the charging network is sub-par.
However, the overall experience of living with the C10 is marred by poorly calibrated safety systems and some tech gremlins that need to be fixed. If these systems can be improved with software updates, the C10 REEV would be a very tempting proposition.
All 24 EVs were driven until they could not hold speed.
Two small EVs lost just 29 percent of claimed range.
Several big names gave up more than 40 percent range.
Winter has a way of exposing weaknesses, and in Norway it does so without mercy. A group of 24 of the newest and best EVs were recently subjected to one of the most demanding range tests imaginable in the depths of Scandinavia’s winter, and it was an American made EV that came out on top.
Conducted by Norwegian publication Motoras part of its biannual El Prix winter range program, the evaluation set out to measure how bitter cold affects real world driving range, and some of the findings are striking.
How The Test Was Conducted
Held twice a year, in winter and in summer, the drive follows a predetermined route. This time, 24 EVs were evaluated in temperatures that dipped as low as -24°F (-31°C), the coldest conditions recorded in the test event’s history and well below previous editions, when temperatures rarely fell under 14°F (-10°C).
For much of the global population, numbers like these might as well belong in weather reports from another planet. Still, they provide a useful stress test. As in previous El Prix runs, each car was driven along the set route until it could no longer maintain the posted speed limit.
The Winners
Coming into the test, the Lucid Air had the highest quoted WLTP range of 960 km (596 miles). In Motor’s winter run, it covered 520 km (323 miles) before the battery was fully depleted. On the other hand, while that figure was higher than any of the other cars evaluated, it is still 46 percent lower than the claimed range.
In terms of outright driving range in the frigid conditions, the Mercedes-Benz CLA also performed well, driving 421 km (261 miles), or 41 percent less than its claimed 709 km (440 miles) WLTP figure. Other strong performers included the Audi A6, which traveled 402 km (250 miles), the BMW iX with 388 km (241 miles), and the Volvo ES90 with 373 km (232 miles).
Total driving range, though, is not the most revealing part of the story. What stands out more is how much, or how little, each car’s range shrinks in the cold. By that measure, the MG 6S EV and Hyundai Inster led the field, with their ranges falling just 29 percent from their WLTP claims. They recorded 345 km (214 miles) and 256 km (159 miles), respectively.
A second Chinese MG also performed well, namely the IM6, with its range falling 30 percent from a claimed 505 km (314 miles) to 352 km (219 miles). The KGM Musso was another strong performer, seeing just a 31 percent drop in its range from 379 km (235 miles) to 263 km (163 miles).
At the other end of the scale, the Opel Grandland matched the Lucid Air for the steepest decline, surrendering 46 percent of its claimed range in the cold. The Volvo EX90 was not far behind with a 45 percent drop, while the Tesla Model Y and Suzuki eVitara each gave up 43 percent. The Skoda Elroq and Mercedes CLA also struggled to contain losses, both finishing with a 41 percent reduction.
Chinese tech giant sold 37,869 YU7s in the first month of the year.
Geely placed two strong sellers in the national top five chart.
VW posted several top sellers despite the wider market slowdown.
January tested the resilience of China’s auto market, exposing fault lines for some brands while spotlighting the rare breakout success. Many domestic manufacturers reported sales declines, with BYD among the most notable names to feel the squeeze. Yet even in a cooling climate, certain models found remarkable momentum. None more so than the Xiaomi YU7.
The all electric SUV, positioned as a rival to the Tesla Model Y and styled with more than a passing resemblance to the Ferrari Purosangue, was the best-selling new vehicle in China last month.
According to figures shared by Autohome, it moved 37,869 units, comfortably ahead of the Geely Boyue L in second place with 34,176 sales. The Geely Geome Xingyuan followed with 29,007, while the Aito M7 secured fourth with 26,454 units.
The presence of two Geely models in the top 5 best-sellers reflects a strong month for the group, with sales up 1 percent year-on-year to more than 270,000 units. The M7 from Aito, backed by Huawei and Seres, also surged in popularity, as did other models from the brand, helping it deliver more than 40,000 vehicles, a surge of over 80 percent from January 2025.
Sales of the YU7 in China have remained strong in recent months. December saw 39,089 units sold, making it the third best selling new car in China at the time. That figure represented a clear rise from November’s 33,729 and October’s 33,662.
It has also moved decisively ahead of the Tesla Model Y, selling more than twice as many units. The Model Y ranked only 20th last month, with 16,845 sales, a result that would have seemed unlikely not long ago. In fact, it was China’s best-selling model in December.
Perhaps the biggest surprises came from Volkswagen. It ranked fifth in China’s top 20 best-selling cars last month, led by the Sagitar with 25,316 units sold. VW also sold 23,481 Lavidas, 21,330 Tiguan Ls, 20,799 Passats, and 19,306 Magotans. In addition, the Nissan Slyphy sold 24,209 units, indicating that not all hope is lost for legacy carmakers in the country.
Things weren’t so rosy for BYD. It sold 205,518 vehicles in China last month across its brands, a significant decline from the 300,538 in January 2025. Only one of its models entered the top 20, the Fang Cheng Bao Ti7, which ranked 18th with 17,116 units sold.
China banned selling new cars below cost including via subsidies.
Rules bar discounts, tax breaks, and trim upgrades at same price.
Automakers face legal risk if caught violating new pricing rules.
The Chinese government is stepping up efforts to end the price war among local car manufacturers following a sales decline in the first month of the year. In what is the government’s most drastic step yet, there will be a cap on how low automakers can price their vehicles.
Newly-released guidelines from the State Administration for Market Regulation explicitly ban companies from setting prices below the cost of production as part of their efforts to monopolize the market and squeeze out competition.
According to the China Automobile Dealers Association, the price war has caused up to 471 billion yuan ($68 billion) in lost output over the past three years. Market sales dipped by their fastest pace in almost two years in January, declining 19.5 percent year-on-year.
Sales fell by an even more considerable 36 percent from December 2025 to January, plummeting from 2.2 million units to 1.4 million, CTV News reports.
Some analysts predict that domestic demand for new cars in China will fall this year, with sales potentially dropping by up to 3 percent. However, Chinese car companies may offset this by exporting more vehicles to overseas markets. BYD, for example, aims to export 1.3 million battery-electric and plug-in hybrid vehicles this year, up from 1.05 million last year.
The Chinese market regulator has warned that companies that don’t comply with the new rules may face “significant legal risks,” although it didn’t reveal what actions could be taken.
Supplier Payment Cycles Slashed
This new ban on setting prices below the cost of production isn’t the only measure being taken to quell the price war. Tighter government oversight has led many major automakers to reduce their supplier payment cycles from an average of 300 days to under 60 days.
As reported by the South China Morning Post, many Chinese car brands have frequently extended payment cycles to keep cash reserves, enabling them to ramp up research and development. The new government oversight appears to be helping.
“The results showed government intervention worked, as the automotive groups feared they could face severe punishment if they failed to operate in compliance with the authorities’ requirements,” chief executive of the Shanghai Mingling Auto Service consultancy Chen Jinzhu said. “Without delayed payments to suppliers, they will not have sufficient cash on hand to sustain discount wars.”
The flagship version of the E7X delivers up to 671 hp.
Audi will offer 100 kWh and 109.3 kWh battery options.
The E7X’s cabin closely resembles the Audi E5 Sportback.
In the space of just a few months, Audi has moved from teasing a China only concept to testing the finished product. Shortly after the first photos of the China only AUDI E7X surfaced, the company released a fresh image of its mid size electric SUV undergoing cold weather testing in China.
While several of Audi’s electric models in Western markets have felt stale and predictable, this one from its all-caps AUDI sub-brand for China looks like a real threat to the country’s homegrown EV powerhouses.
The design of the E7X is virtually identical to the E SUV Concept that AUDI presented at last November’s Guangzhou Auto Show. As such, it looks very similar to the E5 Sportback, albeit in the form of a high-riding crossover. Finished in a deep shade of purple and pictured driving on the snow, there’s no denying that it’s a head-turner.
The new image confirms that the front end will include an illuminated AUDI badge, with the intricate LED daytime running lights sweeping across the entire fascia. Created in partnership with Chinese juggernaut SAIC, the E7X is quite imposing, but should look right at home in some of the country’s bright and bustling cities.
Like the E5 Sportback, the E7X includes a prominent LiDAR poking out from the roof, as well as a set of digital wing mirrors. Details released in December by China’s Ministry of Industry and Information Technology confirmed that the digital mirrors will be optional, with traditional mirrors offered as an alternative.
At the rear, the lighting theme continues. An AUDI badge glows red, framed by LED taillights that wrap around the tailgate. There’s also a prominent split rooftop spoiler to aid in aerodynamics.
In terms of power, the electric E7X will have plenty. The entry-level model will use a rear-mounted motor with 402 hp, and an all-wheel drive version will also be available, fitted with dual motors to deliver 671 hp.
Shoppers will be able to choose between a 100 kWh battery and a 109.3 kWh unit, both compatible with an 800-volt electrical architecture. The E7X’s driving range will vary between 615 km (382 miles) and 751 km (466 miles), depending on the motor and battery configuration, as well as different wheel sizes.
The E7X measures 198.8 inches (5,049 mm) in length, 78.6 inches (1,997 mm) in width, and 67.3 inches (1,710 mm) in height, with a wheelbase stretching 120.5 inches (3,060 mm). That makes the production model slightly smaller and shorter than the original concept, though the overall proportions remain close.
More details about the E7X, including the all important pricing, are expected in the coming months.
Owner averaged 373 miles daily, driving more than some taxis.
Brake pads never replaced, thanks to regenerative braking system.
Car used 47,800 kWh of power, equal to 506 full charge cycles.
The Xiaomi SU7 hasn’t been on the market for very long, but one owner in China put the electric sedan through its paces at a rate higher than most taxis. The model has covered an astonishing 165,134 miles (265,757 km) in just 16 months (476 days), offering a real-world look at how the EV hardware handles heavy use.
What is likely the highest mileage Xiaomi in existence was highlighted on a video that was uploaded on Bilibili by Jackson’s Sunset Drive. The vehicle in question is an Aqua Blue SU7 Pro owned by Mr. Feng, who drove an average of 373 miles (600 km) every day since he took delivery.
For context, the daily trip matches the distance between Los Angeles and San Francisco, with the total distance covered being the equivalent of 6.63 times the circumference of the Earth.
Battery Health After 165,000 Miles
The most impressive takeaway from the high-mileage experiment is the battery’s state of health, as measured by an official Xiaomi service station. Despite the intensive usage, the 94.3 kWh lithium iron phosphate Shenxing battery pack from CATL has retained 94.5% of its original capacity.
As Carnewschina points out, the rival Tesla Model 3 Long Range comes with an eight-year, 120,000-mile (193,120 km) warranty, promising a battery health of at least 70 percent after that period.
Minimal Wear And Tear
In the case of the Xiaomi, it isn’t just the battery that is holding up. The owner claims the vehicle has never required a brake pad replacement, which is a testament to the efficiency of its regenerative braking system. Furthermore, the coolant remains pure, with zero water contamination.
The Pro trim of the fully electric sedan is fitted with a rear-mounted motor producing 295 hp (220 kW / 299 PS) and 400 Nm (295 lb-ft) of torque. According to the automaker, the 94.3 kWh battery offers a CLTC range of 830 km (516 miles) in this variant.
Fuel Savings
Doing the math, based on an estimated efficiency of 18 kWh/100km, Mr. Feng’s Xiaomi has consumed roughly 47,800 kWh of electricity over the past 18 months. This translates to around 506 full charge/discharge cycles for the 94.3 kWh battery.
Overall, Mr. Feng estimates that by opting for the electric sedan over an ICE-powered vehicle he has saved over ¥100,000 ($14,400) in fuel costs over the 265,757 km (165,134 miles). That is a significant amount considering that the starting price of a Xiaomi SU7 Pro is ¥245,900 ($35,400) in China.
Predictably, the video has gained traction and was even shared by Xiaomi CEO Lei Jun. The owner revealed that he plans to continue racking up miles on his EV, targeting to reach 600,000 km (372,823 miles) within three years.
The Xiaomi SU7 has recently made headlines for outselling the rival Tesla Model 3 in China, with 258,164 units delivered in 2025. The company has already announced a refreshed version of the sedan, which is set to arrive in April 2026 with more advanced ADAS, a standard LiDAR, and a longer driving range of up to 560 miles (902 km) in the CLTC cycle.
Chinese Cupra Tavascan could dodge tariffs under EU price deal.
Lawmakers expected to approve the pricing-based tariff path.
China supports the move but pushed for broader concessions.
The Volkswagen Group has been doing some careful footwork lately, trying to stay ahead as Europe tightens the rules on electric cars coming in from China. Cupra boss Wayne Griffiths warned just over a year ago that the brand could be “wiped out” by new European Union tariffs on electric vehicles imported from China.
But now, the VW Group might get a special lane through Europe’s new tariffs on Chinese-built EVs, and that possibility isn’t going unnoticed in Beijing.
Here’s the deal in simple terms. The EU slapped tariffs on electric cars made in China, arguing they benefit from heavy state support. But there is a loophole. Instead of paying those extra duties, a carmaker can agree to sell a model at a minimum price.
Volkswagen looks set to use that option for the Cupra Tavascan, which is built in China, Germany’s Handelsblatt reports. If Brussels signs off, VW can ship it into Europe without being stung by punitive 20.7 percent tariffs, as long as it sticks to the agreed pricing rules. Officially, this is all perfectly above board and part of existing procedures.
Not A U-Turn
The European Commission’s diplomats in Beijing say these kinds of allowances do not constitute a U-turn on its Chinese vehicle policy, a complaint leveled by some critics. Beijing, meanwhile, is being outwardly positive about the rumored EU concessions.
But behind closed doors, the Chinese worry that Volkswagen might be getting friendlier treatment than other manufacturers because it’s a European brand. China had pushed for an industry-wide solution, but now seems to be accepting smaller, case-by-case deals, realizing that letting individual brands cut their own deals may be better than endless stalemate.
Long Process
Each application for a minimum pricing deal can take well over a year and must be reportedly handled on a car-by-car basis, the report says. Industry watchers doubt every Chinese brand will rush in, especially those already making healthy margins even with tariffs in place, but VW evidently believes it’s worth the admin in the Tavascan’s case.
The Tavascan is Cupra’s sportier take on the VW ID.5, a 182.8-inch (4,644 mm) electric crossover built around the MEB platform and offering a mix of single and dual-motor powertrains with up to 353 miles (568 km) of electric range.
Dreame has launched a third car brand called Star Motor.
Two of the new models closely resemble Dongfeng vehicles.
One upscale SUV channels China’s take on the Rolls-Royce.
Just a month after Chinese vacuum cleaner firm Dreame unveiled three high-performance EVs at the CES show in Las Vegas, it has previewed three additional models it plans to add to its fleet. These will be launched under the new Star Motor brand, existing alongside Dreame’s Nebula Next and Kosmera brands.
The first two models are the T08 and T08L. Both are striking off-roaders, with the T08L sharing much of its design with the T08 but is considered even more focused on off-road performance. There’s no denying the T08 models are striking, but their design isn’t unique. In fact, they almost look like direct copies of two other bold Chinese off-roaders.
Those two models come from Dongfeng, where they are badged the M917 and M817. Dreame has quite clearly copied Dongfeng’s homework with the T08L, crafting bodywork that looks almost identical to the M917, as well as near-identical headlights. The T08 looks mostly the same but has slightly different headlights, apparently copied from the smaller M817.
The similarities between Star Motor’s T08 and Dongfeng’s M917 are particularly apparent from the sides. It has virtually identical squared-off fenders, the same exposed hinges on the front doors, and door panels that look exactly the same as the M917. The only unique element that Star Motor appears to have designed is a distinctive front bumper.
Star Motor hasn’t actually unveiled the T08 and T08L, and only previewed them with a couple of images at a recent company event. As such, we don’t know what kind of powertrains they will have, other than the fact that they will include rear-wheel steering that can turn the rear wheels by up to 24 degrees.
Rolls-Royce Fighter
Previewed alongside the T08 and T08L was the Star Motors D09 that looks to be positioned as the firm’s flagship luxury SUV, akin to the Rolls-Royce Cullinan. It shares similarities with the Cullinan lookalike that Dreame previewed last year and could be the production version of that model.
The front of the D09 is dominated by a grille that makes even a Rolls-Royce grille seem small. It also has prominent LED daytime running lights up front, a LiDAR mounted on the roof, and a set of fancy-looking wheels.
BYD sold 205,518 cars in January, down from 300,538 last year.
EV and plug-in hybrid sales both dropped compared to 2025.
Analysts say Beijing may revive incentives if sales stay low.
Demand for electric cars in China may be cooling, and some of the country’s biggest automakers are starting to feel the chill. Several of the most prominent domestic brands, including BYD, Xpeng, and Xiaomi, reported noticeable drops in January sales.
Data shows that BYD sold 205,518 vehicles in China last month. The number sounds solid on its own, but it marks a sharp decline from the 300,538 vehicles the company moved in January 2025.
Both BYD’s electric vehicles and plug-in hybrids were affected. Of the 205,518 vehicles sold last month, 83,249 were EVs and 122,269 were PHEVs. A year earlier, those numbers stood at 125,377 and 171,069 respectively. Exports took a hit too, dropping to 100,482 units in January from 133,172 in December.
Is Government Policy Slowing Sales?
These figures suggest weakening demand in China and possibly overproduction for overseas markets, but a recent government policy change may go some way to explaining the drop. As of January 1, the country reinstated a 5 percent purchase tax for new energy vehicles, having previously exempted them from a 10 percent tax for more than a decade, CNBC reports.
“We see increasing pressure on China’s auto market in 2026, driven by a combination of policy and competitive factors,” Helen Liu, partner at Bain & Company, told CNBC. She added that recent tax changes may prompt some consumers to delay purchases, while automakers hold back on new model launches.
“We know [EV sales will] slow, we just don’t know by how much,” added Tu Le, founder of Sino Auto Insights. “We’ll know much better after the first quarter is over.”
Rough Starts And Reversals
Xiaomi also struggled out of the gate. It sold 39,000 cars in January, which was an improvement over the same time last year, but a steep drop from the more than 50,000 EVs delivered in December. Xpeng’s January was even rougher. Sales fell 34.1 percent year-on-year to 20,011 units, and the month-on-month drop was starker still at 46 percent compared to December 2025.
Li Auto’s performance dipped as well, with deliveries slipping to 27,668 units for the month.
Competitors Capitalize
However, it’s not all bad news. One of the few bright spots was Aito, a newer brand backed by Huawei’s operating system, which reported more than 40,000 deliveries in January, marking a gain of more than 80 percent compared to the same month last year.
Sales at Leapmotor rose to 32,059, while Nio also reported an increase to 27,182 units. Geely sold more than 270,000 cars in January, a 1 percent increase year-on-year. Interestingly, its EV sales fell by 15 percent, while its PHEV sales rose 37 percent.
That performance has pushed Geely into second place in the country’s EV market behind BYD, thanks in part to strong momentum from its Galaxy and Zeekr brands.
Will China Step In?
The slowdown has fueled speculation that Beijing may step in once again. If the slump continues into the first quarter, analysts believe the government could reinstate certain subsidies or incentives
Lawmakers criticized Waymo’s growing reliance on Chinese suppliers.
Some robotaxi operations are remotely managed from the Philippines.
Senators raised national security concerns over foreign involvement.
Waymo chief safety officer Mauricio Peña fronted US lawmakers at a tense Senate hearing last week, where the self-driving tech company was accused of getting “in bed with China,” as it rolls out more of its robotaxis. The hearing also offered a reminder that beneath the polished image of AI, there’s still a reliance on human labor, often lower paid, sourced from abroad, and largely out of sight.
For years, the Google Alphabet-owned company has relied on the Jaguar I-Pace for its fleet, but Waymo is now preparing to roll out a next-generation, minivan-style robotaxi developed in partnership with Zeekr, a subsidiary of China’s Geely Group.
During the hearing, Peña told lawmakers that the United States is “locked in a race with Chinese companies for the future of autonomous vehicles.”
He also warned that without a clear national framework, the industry could end up facing a fragmented patchwork of state regulations that slows investment and limits progress.
Lawmaker Questions Zeekr Partnership
Sen. Bernie Moreno from Ohio didn’t let the irony of Waymo using a Chinese vehicle for its fleet go unnoticed. “You said in your testimony that we’re locked in a race with China, but it seems like you’re getting in bed with China,” he retorted during the hearing.
“Giving a natural market to a Chinese company to ship us cars is making us better and creating more jobs for Americans? That’s completely ridiculous,” Moreno added.
According to Business Insider, Moreno went on to suggest that Waymo could be sidestepping US laws designed to curb Chinese involvement in sensitive vehicle technologies. He speculated that the company might be using a “backdoor” to avoid complying with the federal connected vehicle rule, which was finalized last year but has not yet been fully implemented.
Peña rejected that characterization. He maintained that the Zeekr vehicles have “no connectivity” and that all of the autonomous systems are installed in the United States. He also argued that leveraging a global supply chain gives Waymo the flexibility to grow faster and build in operational safeguards.
Overseas Operators Raise Flags
Still, the issue of oversight didn’t stop at the hardware. During the hearing, Waymo revealed that in addition to using remote operators in the US, it also has some working overseas.
When asked for a breakdown of operator locations, Peña said he didn’t have exact figures but confirmed that while some are based in the US, others are much farther away, including in the Philippines, Futurism reports.
“They provide guidance,” he argued. “They do not remotely drive the vehicles. Waymo asks for guidance in certain situations and gets an input, but the Waymo vehicle is always in charge of the dynamic driving tasks, so that is just one additional input.”
According to Senator Ed Markey of Massachusetts, “having people overseas influencing American vehicles is a safety issue,” adding that these are the jobs that Americans should have. He called the use of remote human operators outside the US “completely unacceptable,” according to Business Insider.
In a statement to Carscoops, Waymo emphasized that no remote employees drive the vehicles.
“Waymo’s fleet response teams are located in the U.S. and abroad. As we scale globally – including to London and Tokyo – we need some Fleet Response functions outside of the U.S. It is very important to note, however, their role is never to drive the vehicle remotely. Our technology, the Waymo Driver, is in control of the dynamic driving task, even when it is receiving guidance from remote assistance”, the spokesperson said.
Tesla Joins the Conversation
The vice president of vehicle engineering at Tesla, Lars Moravy, was also in attendance at the Senate hearing. He said that the US needs to “modernize regulations that inhibit the industry’s ability to innovate,” or risk losing the autonomous vehicle race.
“Federal regulations for vehicles have not kept up with the pace of the rapid evolution of technology,” Moravy said. He added that many safety standards still in place were designed decades ago and no longer account for today’s technical realities.
Update: We’ve added quotes from Mauricio Peña and a statement from Waymo.
CATL says its new 5C battery lasts far longer than rivals.
Delivers 1.1M miles with repeated fast charging at 20 C.
Withstands 60 C heat and still offers over 500,000 miles.
New EVs come with long battery warranties, but used EV buyers picking one up years later don’t get that same safety net. And the thought that a car spent its early life tethered to a fast charger is a major worry. But according to one major Chinese battery supplier, that may not be the case for much longer.
CATL claims its latest 5C lithium ion pack can retain 80 percent of its original capacity after 3,000 full charge cycles when hooked up to a fast charger under ideal 20 degrees C (68 F) conditions. Do the math and that works out to roughly 1.1 million miles (1.8 million km). That’s taxi driver territory, not school run use.
Even when things get toasty, the numbers still look wild. CATL says that at 60 C (140 F), which it compares to a Dubai summer, the battery still holds 80 percent capacity after 1,400 cycles. That equates to around 520,000 miles (840,000 km), which is still more than many cars ever see.
Charge In 12 Minutes
The 5C label refers to charge rate in fills per hour. In simple terms, this battery can theoretically be charged from empty in about 12 minutes. Ultra fast charging like that normally hammers battery longevity, but CATL says clever chemistry and thermal management keep degradation in check.
According to the company, the secret sauce includes a more uniform cathode coating to reduce structural damage, a special additive in the electrolyte that helps repair tiny cracks, and a temperature responsive layer on the separator that slows ion movement if things start getting too hot. The battery management system can also target cooling to specific hot spots inside the pack.
All of this is aimed at making fast charging routine rather than something owners try to avoid. That could be a game changer for high mileage users like taxis, ride hailing drivers and delivery fleets, where downtime really is money.
Of course, this is all on paper for now. CATL hasn’t said when mass production will start or which cars will get these long-life packs first. Real world results often look less glamorous than lab numbers.
Still, if even half these claims hold up, the idea that an EV battery might outlast the car wrapped around it suddenly sounds a lot less like science fiction and a lot more like your next used car bargain.
Canada cut Chinese EV tariffs from 100% to 6.1% in new deal.
Initial cap set at 49,000 vehicles, with future growth to 70,000.
Nearly half of new EVs expected to cost under $35k CAD to start.
A new trade agreement has cracked the door open for electric vehicles from China to officially re-enter the Canadian market. In exchange, the People’s Republic is easing up on tariffs for Canadian agricultural exports, especially canola. Yes, your future EV might be indirectly powered by salad oil diplomacy.
Cheap, tech-packed, and improving at a scary pace, Chinese EVs are terrifying North American automakers and fascinating savvy car buyers, and they haven’t even landed yet, kept out by tariffs and political caution.
This new agreement changes the vibe. Canada gets more affordable EV options because the tariff rate is being cut from 100 percent to 6.1 percent.
The initial annual import cap is set at 49,000 vehicles, or one third of the car market, but could grow to 70,000 annually five years from now. And crucially, around half of the volume is expected to cost less than $35k CAD ($25k).
But what would you buy? If price is king, the tiny BYD Seagull, sold in some markets as the Dolphin Surf, could be the ultimate city runabout. Sure, it looks about the size of a carry on suitcase with headlights, and Canadian winters are not exactly minicar friendly.
However, if the goal is getting more people into affordable EVs, this little hatch and its bigger Dolphin brother could be game changers for urban commuters.
Sedan fans looking for some style, will be hoping Xpeng’s P7+ (seen above) gets an invite, but if you’re determined to blow past that $35k budget you’ve surely got to be rooting for the Xiaomi SU7 sedan and YU7 SUV.
These are the cars that make traditional brands nervous and car nerds very curious. Ford CEO Jim Farley daily-drove an SU7 specially imported for him and his team in 2024 and described it as “fantastic,” telling an interviewer “I don’t want to give it up.”
Of course, there will be questions about service networks, long term reliability, and how these brands fit into Canada’s market. But purely from a car geek perspective, the idea of suddenly having access to this whole new wave of EVs is kind of exciting.
So Canadians, if these cars start showing up in showrooms, which one are you signing for? And if you are reading from elsewhere, play along. If you did live in Canada, what Chinese EV would be on your driveway?
Electric YU7 GT packs 990 hp from dual-motor, all-wheel drive setup.
Voluptuous body bigger air intakes, large rear diffuser, red GT badge.
Reports say the Model Y Performance-eater could cost $60k-$70k.
Xiaomi isn’t content with making an SUV that looks almost as good as Ferrari’s. The Chinese tech giant’s high performance YU7 GT has surfaced in official Chinese filings, and if the numbers are right, this thing has enough power to make some V12 Purosangue owners sweat into their designer driving gloves.
The regular YU7 is already turning heads by mixing sleek looks with serious EV grunt. Now Xiaomi has cranked the dial way past sensible. The GT version gets a dual-motor setup pushing a combined 738 kW, which works out to about 990 hp (1,004 PS). Its combustion Ferrari lookalike makes do with 715 hp (725 PS / 733 kW).
Okay, so that’s not quite as crazy as the 1,526 hp (1,547 PS / 1,138 kW) punched out by the hottest version of the YU7’s sedan brother, the SU7 Ultra, but we doubt anyone who buys one will feel it lacking in go.
Spec papers logged with Chinas’ Ministry of Industry, Information and Technology (MIIT) list the top speed as 186 mph (300 kmh) and we’d put money on that being artificially limited. The battery is a lithium pack from CATL but electric range details are still under wraps.
Subtle Menace
Visually, the GT dials up the drama with, chunkier bumpers with angrier air intakes and a large rear diffuser. Red brake calipers peek out from behind 21 inch wheels, and there are matching red GT badges on the rail and doors to make sure nobody mistakes this for the sensible family version.
The regular YU7 lineup already stretches from single-motor, rear-drive models with around 315 hp (320 PS / 235 kW) up to dual-motor versions with as much as 681 hp (691 PS / 508 kW). Those cars helped Xiaomi rack up huge sales in China and even outranked the Tesla Model Y on home turf.
Priced to Shame Porsche
The YU7 GT sits higher, both in performance and, most likely, price. Early chatter from China point to a range between 450,000 and 500,000 yuan, or roughly $60,000 to $70,000. Porsche’s new Cayenne Turbo Electric makes significantly more power, with 1,139 hp (1,155 PS / 850 kW), but it starts at $163,000 in the U.S. and is expected to cost at least twice as much as the Xiaomi in China. No surprise, then, that Porsche is struggling.
Canada is scrapping its EV sales mandate and changing course.
The 2035 target shifts from 100% EVs down to just 75% now.
Clean car incentives return as Canada distances from the U.S.
Canadian Prime Minister Mark Carney has introduced a new automotive strategy that “rewards the production of made-in-Canada vehicles and harnesses our world-class capabilities in artificial intelligence and technology expertise to build the cars of the future.”
As part of this effort, the country is revamping its electric vehicle mandate once again. The goal is to “rationalize emissions reduction policies” and put Canada on a path that will see 75% of sales come from EVs by 2035. That would then climb to 90% by 2040. This is a notable shift as the country was previously looking at reaching 100% by 2035.
Furthermore, Canada is repealing the Electric Vehicle Availability Standard and increasing emissions standards. The government said this will “allow manufacturers to use a wide array of technologies to meet the [new] standards and respond to consumer preferences in the near-term, while driving EV adoption over time.”
New Incentives For Canadians To Go Green
While the country is tapping the brakes on the electric vehicle transition, they’ll encourage Canadians to buy EVs with a new five-year program that will provide individuals and businesses with incentives to go green. Electric and fuel cell vehicles will be eligible for up to $5,000 CAD (3,658 USD), while plug-in hybrids can get up to $2,500 CAD ($1,829 USD).
Canada’s auto industry is facing huge pressures, leaving workers and businesses in a state of uncertainty. So we’re taking control — and launching a new strategy that will transform the industry to be a global leader in electric vehicles.
There’s a $50,000 CAD ($36,574 USD) limit on the final transaction price for vehicles made in countries Canada has a free-trade agreement with, but Canadian-made EVs and PHEVs have no price cap at all.
To further encourage adoption, Canada will invest $1.5 billion CAD ($1.1 billion USD) to improve their charging infrastructure. This aims to make it “easier and more convenient for drivers to charge their EVs across the country.”
Incentives For Businesses As Well
The government is setting aside up to $3.1 billion CAD ($2.3 billion USD) to “help the auto industry adapt, grow, and diversify to new markets.” There will also be tax incentives to encourage companies to invest in electric vehicles as well as clean technologies.
On top of that, the country aims to strengthen the competitiveness of their auto sector by rewarding companies that produce and invest in Canada. They’ll also maintain counter-tariffs on automotive imports from the United States and look to grow automotive imports from elsewhere.
China is front and center as vehicles will be imported from there in the near future. Ultimately, Canada hopes Chinese automakers will setup shop in the country and build vehicles locally. This could help fill the void left by American automakers, who have moved some production stateside.
Support For Autoworkers
Canada announced a handful of measures designed to protect autoworkers in an era of trade wars and electrification. In particular, there will be a new Work-Sharing grant that aims to support worker retention and prevent layoffs.
The country will also provide employment assistance and reskilling support for up to 66,000 people including displaced auto workers. This will be made possible by a $570 million CAD ($417 million USD) investment.
American Tariffs Push Canada To Embrace Other Countries
The government noted over 90% of Canadian-made vehicles and 60% of Canadian-made parts are exported to the United States. This is a huge problem as Canadian-made vehicles have faced a 25% tariff in America (on non-US content) since April.
The country said the tariff is “threatening Canada’s automotive manufacturing industry and the 125,000 direct jobs it supports.” Given this, the country is looking to develop a more independent economy and one that can ship Canadian-made vehicles to new export markets.
In a statement, Carney said “Canada’s new government is fundamentally transforming our economy – from one reliant on a single trade partner, to one that is stronger, more independent, and more resilient to global shocks. We are making strategic decisions and generational investments to build a strong Canadian auto sector, where Canadian workers build the cars of the future.”
Unifor welcomes elements of the new federal auto policy, while calling for bold steps to protect Canadian auto jobs and secure a future for workers at idled plants in Brampton and Ingersoll. #canlabhttps://t.co/r8CXSmPp0S
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