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.

The electric SUV game just got a little more interesting. Xiaomi gave us our first look at the stylish YU7 last year, and now the crossover has officially been launched in China. It’s big news as the YU7 is the company’s second model and their first SUV, following the SU7. That sedan has been a runaway success in its home market, racking up 258,000 sales in just 14 months, including 28,000 deliveries in April alone.

The crossover follows in the footsteps of the SU7 and is a high-performance luxury SUV with an impressive design. It features a shark nose front end that is flanked by “waterdrop” headlights, which have channels that direct air out through the hood. Speaking of which, the crossover has the largest clamshell aluminum hood among mass-produced vehicles.

More: Xiaomi YU7 SUV Looks Like A Ferrari Purosangue And McLaren Rolled Into One

Aerodynamics played a huge role in the YU7’s development and the production model has “10 through-flow air channels and 19 optimized vents to manage airflow precisely.” They’re joined by aerodynamically optimized wheels and an active grille shutter system. Thanks to all this attention, the model has a drag coefficient of 0.245.

Since we’ve already seen the crossover before, we’ll just briefly mention a few highlights including flush-mounted door handles and a standard panoramic glass roof. They’re joined by a distinctive rear end with “halo” taillights and two spoilers. The model is being launched in three eye-catching colors – Emerald Green, Titanium Silver, and Lava Orange – and they contrast with gloss black accents.

In terms of size, the YU7 measures 196.8 inches (4,999 mm) long, 78.6 inches (1,996 mm) wide, and 63 inches (1,600 mm) tall with a wheelbase that spans 118.1 inches (3,000 mm). That means the crossover is 2.3 inches (58 mm) shorter than the Tesla Model X and has a 1.4-inch (35 mm) longer wheelbase.

Minimalist Interior, Maximalist Screens

While the exterior is stylish and expressive, the cabin is overly minimalist. It’s dominated by a 16.1-inch infotainment system and a HyperVision Panoramic Display, which sits at the base of the windshield.

The latter echoes BMW’s Panoramic iDrive Display and spans 43.3 inches. It’s customizable, but can act as a speedometer, a navigation display, and a front passenger display.

Putting screens aside, the crossover has Nappa leather zero-gravity front seats with one-touch recline and a 10-point massage function. They’re joined by power-adjustable rear seats with backrests that can tilt from 100° to 135°.

Rear seat passengers will also find dedicated climate controls and a dual-screen entertainment system. Other highlights include a wireless smartphone charger, hidden air vents, and soft-touch materials throughout.

The crossover can accommodate 23.9 cubic feet (678 liters) of luggage and that can be expanded to 62.1 cubic feet (1,758 liters) by folding the seats down. There’s also a small frunk, which provides 5 cubic feet (141 liters) of space.

Power, Range, and Charging Speed

Three different configurations are available and the entry-level YU7 has a single electric motor producing 316 hp (235 kW / 320 PS) and 389 lb-ft (528 Nm) of torque. It enables the model to accelerate from 0-62 mph (0-100 km/h) in 5.9 seconds, before hitting a top speed of 149 mph (240 km/h). Buyers will also find a 96.3 kWh battery pack that delivers a CLTC range of 519 miles (835 km).

The mid-level YU7 Pro has a dual-motor all-wheel drive system producing 489 hp (365 kW / 496 PS) and 509 lb-ft (690 Nm) of torque. This cuts the dash to 62 mph (100 km/h) to 4.3 seconds, but the top speed remains unchanged. Unfortunately, the range drops to 472 miles (760 km).

The range-topping YU7 Max has an upgraded dual-motor all-wheel drive system with 681 hp (508 kW / 690 PS) and 639 lb-ft (866 Nm) of torque. 0-62 mph (0-100 km/h) comes in a blistering 3.2 seconds and drivers will eventually hit 157 mph (253 km/h) if they keep their foot planted on the accelerator. The Max is also notable for having a larger 101.7 kWh battery, which delivers 478 miles (770 km) of range.

When the battery is low, owners can go from a 10% to 80% charge in as little as 12 minutes. After 15 minutes, they can get up to 385 miles (620 km) of range.

The YU7 has a double wishbone front and five-link rear suspension with air springs. The latter provide five levels of adjustment, meaning the crossover can provide up to 8.7 inches (222 mm) of ground clearance. Other highlights include continuous damper control and a high-performance braking system with four-piston Brembo calipers.

Xiaomi also confirmed the crossover will have advanced driver assistance technology. This is made possible by a roof-mounted LiDAR sensor, a 4D millimeter-wave radar, 11 high-definition cameras, and 12 ultrasonic radars.

Pricing and Availability

While pricing details haven’t been released yet, Xiaomi founder and CEO Lei Jun dismissed earlier rumors suggesting a starting price around 200,000 yuan ($27,800). “The Model Y starts at 263,500 yuan ($36,600), and based on these (YU7) configurations, this car should cost 60,000 to 70,000 yuan ($8,300 to $9,700) more,” Lei said during the presentation, according to Reuters. “But we’ll talk about the price in July.”

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.

A small but growing number of automakers are figuring out how to make EVs weird in all the right ways. Among them is Chery’s iCar brand, which has a few unconventional offerings, but none more intriguing than the V23. This chunky SUV looks like someone merged a Land Rover Defender with a Suzuki Jimny in a design studio that really loves straight lines. And now, it’s gotten even more eccentric with a retro-styled body kit.

The standard V23 already plays the retro card well, thanks to its squared-off profile, upright front and rear ends, and pronounced fender flares that give it a solid presence. But the new ‘Retro Emotion Package’ takes it further with a matte green wrap that feels perfectly suited to its aesthetic. It might look slightly out of place in a downtown traffic jam, but out in the wild, it fits right in.

Read: Chery’s iCar Expands Its Lineup With Rugged Minivans And Tougher SUVs

Complementing the special wrap is a unique front grille and a blacked-out front bumper. iCar has then added a large spotlight on the hood. Admittedly, it looks a little cheap, and the brand perhaps would have been better to add a set of more traditional circular spotlights to the front end.

Adding to the visual makeover are black rocker panels, side steps, and a set of 19-inch wheels wrapped in all-terrain tires. So yes, it’s dressed to look like it could leave the pavement behind, whether or not it ever will.

Apparently, iCar was quite serious about developing an upgrade kit that doesn’t just look the part but serves some purpose. According to a report from China’s Ithome, that the matte green wrap has a special anti-glare treatment to meet military vehicle concealment standards. Additionally, the front grille can be quickly and easily removed and replaced by owners.

Considering how affordable most EVs are in China, it’s no shock that this upgrade kit follows suit. Depending on the configuration, it’s priced between 4,000 and 10,500 yuan, or roughly $550 to $1,450 at current exchange rates. As for the V23 itself, pricing starts at 109,800 yuan (about $15,000) and tops out at 149,800 yuan (around $20,500), which keeps the whole setup firmly planted in the budget EV bracket.

To put that in perspective, the base version costs about the same as a used 2021 Nissan Versa with 65,000 miles on the clock – and considerably less personality, if we’re being honest.

Performance-wise, entry-level models come with a 136-horsepower motor driving the rear axle. Higher trims get a dual-motor setup with a total output of 211 horsepower, both modest numbers, but likely enough to keep this small SUV feeling sprightly on back roads and city streets alike.

We thought we had seen it all when Xpeng dropped the first photos of the new-generation P7 sedan. But, as it turns out, there’s more hiding under the surface. New spy shots from China have revealed the sports sedan will get Lamborghini-inspired scissor doors, just like the limited edition of its predecessor. While some might argue that scissor doors belong strictly to the world of supercars, they certainly give the P7 a distinct edge, helping it stand out in the crowded electric sedan market.

In China, the P7s with these doors are called ‘peng-wing’ models, and they’ll probably be reserved for the top-tier version of the new car. The latest photos from China’s Autohome show that, much like the previous model, the doors open at an angle instead of shooting straight up. This design ensures there’s enough room between the door and the front quarter panel.

Read: Xpeng’s Latest EV Feels Like A Lamborghini Sports Sedan

It’s not just the doors of the new model that have taken inspiration from one of Italy’s most famous brands. Recent shots of the P7’s front end show it will have sideways Y-shaped daytime running lights not dissimilar to those used by the Lamborghini Revuelto.

The prototype featured in these shots also rocks a set of bright orange Brembo brake calipers and sits on sticky Michelin Pilot Sport EV tires, measuring 245/40 R21 at the front and 275/35 R21 at the rear. We don’t yet have dimensions for the new model, but it looks longer than a Tesla Model 3 and may also be slightly longer than the Xiaomi SU7.

This prototype, as well as the car recently showcased by Xpeng, also lacks any visible LiDAR system, which Xpeng currently uses for its driver assistance systems. This suggests the new P7 may follow in the footsteps of Tesla with a vision-based system that will be cheaper. Whether or not it will be as effective remains to be seen.

The rear end of the refreshed P7 looks a lot nicer than the old car. It retains a similar fastback-style shape but has fewer curves and soft edges, instead relying on more aggressive lines and sharp angles. Xpeng’s designers have also crafted new LED taillights and a light bar, similar in shape to the DRLs up front.

Xpeng has not announced powertrain details for the new model, but local media reports that it will be offered with the same options as the outgoing model. These could include a rear-wheel drive version with 272 hp and 436 miles (702 km) of range, as well as a dual-motor 466 hp model that is good for 379 miles (610 km). The new P7 could be unveiled in the third quarter of the year during the Guangzhou Auto Show.

Autohome

The drama at Xiaomi’s automotive division doesn’t seem to be winding down anytime soon. Just days after the company was forced to apologize to owners of the SU7 who spent $6,000 on an aero hood only to find out the vents were little more than cosmetic, and not long after a software update nearly reduced the Ultra’s 1,526hp to a mere 888hp, Xiaomi now claims it’s uncovered what it calls a smear campaign against the brand.

The news comes just days before Xiaomi is set to reveal the YU7 electric SUV and the Xring 01, its first in-house developed smartphone chipset. In a posting on their social media page, Xiaomi’s legal team posted an update saying they had uncovered a coordinated effort to defame the company across nearly 10,000 social media accounts. Several suspects are now under investigation by Chinese authorities.

More: Xiaomi Recruiting BMW Execs For European R&D Center

As reported by several local media including Car News China, the criminal gang was allegedly active since December 2024. The company claims that the bad actors used automatic copywriting software to fabricate false information about Xiaomi, and manipulated nearly 10,000 social media accounts to maliciously spread rumors and false statements. The group reportedly engaged in tactics such as stirring up online opposition and pitting rival brands against each other, all in an effort to damage Xiaomi’s reputation.

In a statement, Xiaomi described the situation as a new form of online “water army” crime, where a criminal gang uses automated software to generate fake content on a massive scale. “The distribution chain is complex, and the scale of the operation is enormous,” the company said. “This has had a severely negative impact on both the online environment and our corporate reputation.”

Who’s Behind It?

Even though no names were named, any number of rivals could be at play here. Cars are nowadays more tech-defined than ever and are bound to become even more so in the near future, as the chipset and automotive industries become more intertwined. Thus, when a disruptor comes along and threatens to change the status quo, apparently all gloves are off since there are billions of dollars at stake.

More: Xiaomi SU7 Outsells Tesla’s Model 3 In China

In the epic Iliad, Helen of Troy’s beauty sparked a war that would go down in history. Now, nearly three millennia later, Xiaomi has found itself in the strange position of being the brand that launched 10,000 social media accounts, each working to smear it in the months leading up to its first electric crossover. If anything, imitation is the sincerest form of flattery, and if rival companies are going to such lengths to bring down Xiaomi, it’s clear they fear what’s coming next.

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

It’s no secret that Western brands are having a tough time in China after making bank for years. Sales are falling as buyers turn to domestic brands that are gaining ground fast and in some instances overtaking legacy automakers. BMW and Mercedes were comprehensively outsold in 2024 by a brand that didn’t even exist four years earlier.

Also: Aito Gets 70,000 Pre-Orders For New M8 EREV

That brand is Aito, one that you might not have heard of even if you’re familiar with other Chinese automaker like XPeng, Xiaomi and Nio that we frequently cover here at Carscoops. Aito was born in 2021 when smartphone maker Huawei teamed up with Seres Group, a company once known for its basic mini trucks and minivans whose twin kidney grilles were shameless rip-offs of BMW’s.

Two brands, one with no high-end car-building expertise and the other completely new to to car game? It doesn’t sound like the basis for a company that could crush the kings of Western luxury carmaking within a few short years, but that’s exactly what has happened. Seres Group’s total vehicle sales trebled in three years to 427,000 according to figures quoted by Bloomberg, and Aito’s success was a major driver.

Aito’s Breakthrough Year

Atio sold 151,000 luxury cars last year – defined as vehicles costing over ¥500,000 ($69k) – making it the most popular brand in the luxury segment. BMW came second with 145,000 units and Mercedes was a distant third having delivered 127,000 cars. Fourth-placed Land Rover scraped 50,000 sales and Porsche, whose China woes are well known, secured fifth spot with 48,0000 units delivered, ThinkerCar’s data shows.

Because most of Aito’s models fall below the ¥500k luxury threshold, the heavy lifting at the high end was handled by the brand’s M9, an SUV that’s roughly the same size as China’s long-wheelbase BMW X5 and comes with a triple-screen dashboard and a choice of range-extender and full EV powertrains.

Seres 5 Review: Can A Chinese Newcomer Beat Tesla And BMW In The EV Game?

Aito isn’t slowing down. The company launched a slightly smaller version of the M9 this year called the M8, which is just 40 mm (1.6 in) shorter, and it’s set to continue cranking up the heat on Western luxury brands in 2025. However, even Aito has to contend with a general slowdown in luxury car demand and an all-out price war. Still, it’s clear that the brand’s rapid ascent is far from a fluke.

While Nissan might be in the midst of some serious turmoil, including factories closing and tens of thousands of layoffs, the company has somehow managed to pull off a small win in the form of a new EV that’s gaining traction. Unfortunately, it’s only available in China for now, but hopefully, Nissan can draw on this success when developing future global models that could help stabilize the company.

Last month, Nissan unveiled the N7, and it’s already looking like a fresh start. For one, it doesn’t look like anything else in their lineup, which is refreshing in itself. And while it still carries Nissan’s badge, the N7 is built on the Dongfeng 007 platform, a product of Nissan’s Chinese joint venture. It’s proven popular with local shoppers too. In the 18 days since its debut, over 10,000 orders have rolled in, showing that there’s plenty of interest in what Nissan has to offer.

Read: Nissan’s New Electric Sedan Is As Big As A Maxima, Cheap As A Versa

According to Nissan, approximately 30% of buyers already own a Nissan model, while the remaining 70% are new to the brand. The first 35 were delivered at a special event at Dongfeng Nissan’s New Energy Brand Experience Center in Shanghai.

Beyond looking fresh, the N7 is no doubt proving appealing because it’s very affordable. The entry-level model starts at 119,900 yuan or the equivalent of $16,500 at current exchange rates. This model has a 58 kWh battery pack, 215 hp, and a quoted driving range of 510 km (317 miles). Nissan also sells Pro and Max versions of the N7 with this same powertrain, priced at 129,900 yuan (~$17,800) and 139,900 yuan (~$19,200) respectively.

For buyers who want something with a bit more range, two models with a larger 73 kWh pack are also available, priced from 139,900 yuan (~$19,200) and 149,900 yuan (~$20,500). These N7 620 Pro and N7 620 Max versions have a 268 hp electric motor and a driving range of 625 km or 388 miles. It’s also worth noting that according to CarNewsChina, over 60% of orders have been for the higher-end Max versions.

As great as it sounds, the N7 is almost certainly destined to stay in China. If Nissan does decide to send it elsewhere, you can bet it won’t be coming to the US. But for now, at least Nissan has a small win on its hands, something they can hopefully build on, even if it never quite reaches global markets.

Mazda’s latest creation is here, and it looks even sharper than before. The 6e sedan already boasted sleek styling and a refined interior, but it was crying out for a sportier edge, think something along the lines of BMW’s M Sport trim. Well, Mazda listened and has finally delivered.

The Japanese automaker and Changan have come up with the EZ-6 Sports Edition for the Chinese market, EZ-6 being the Asian name for the car we in the West know as the 6e.

Related: 2026 Mazda 6e EV Debuts In Europe To Battle The Tesla Model 3

Black exterior brightwork, gloss black 19-inch alloy wheels and red brake calipers help the Sports Edition stand out from more laid-back EZ-6 models from the outside, and the performance vibe continues inside through the use of Alcantara upholstery and flashes of red on the seat stitching and seats.

Mazda has also added red backlighting for the interior surfaces and a mesh-look aplique for the console that looks very similar to the trim pattern used on sportier CX-60 grades. The same 14.6-inch infotainment screen used on other EZ-6/6es, a 50-inch augmented reality head-up display powered by a Qualcomm Snapdragon 8155 chip, and a 14-speaker Sony audio system come standard, according to Car News China.

Photos Mazda Changan

The Sports Edition was revealed at the Shanghai Auto Show last month but managed to slip under our radar. Mazda and Changan didn’t specify whether it was packing more power than the stock sedan, but we suspect this is merely a trim package. We also strongly suspect Mazda will very soon launch a similar trim option for the European market 6e – Car News China reports that the Sports Edition was jointly developed by Mazda and Changan in China and Mazda Europe.

We’ve asked Mazda Europe about the powertrain, whether the Sports Edition is coming west, and what it’ll be called if it does, and we’ll let you know when we hear more.

One thing that will definitely be different about the Chinese and Western versions is the choice of powertrains, even though production for both models takes place in the same Changan plant. China’s EZ-6 is available with either a 1.5-liter range-extender setup making 215 hp (218 PS / 160 kW) or a 255 hp (258 PS / 190 kW) pure-battery alternative, but Europe’s 6Es are EV-only.

Photos Mazda

Changan

In the wake of the US-China trade war, Tesla temporarily halted shipments of parts from China to the US. However, with both countries now agreeing to a 90-day truce and significantly reducing their respective tariffs, Tesla is looking to resume the import of critical components from China. Elon Musk may want to keep this news under wraps from President Trump, though, as his stance on tariffs is far from favorable.

Read: Tesla’s CyberCab Promises 300-Mile Range with Surprisingly Small Battery

An unnamed inside source told Reuters that Tesla will start shipping Cybercab and Semi parts from China at the end of this month. The electric automaker will reportedly start trial production of the Cybercab in October before moving ahead with mass production in 2026. Tesla has grandiose ambitions for the Cybercab and is betting on hundreds of thousands of units being sold in the US, forming the core of its long-awaited robotaxi service.

As the electric car maker gears up for production, many details about the Cybercab remain under wraps. What is known, however, is that the vehicle will be a compact, two-seater, completely eliminating the traditional steering wheel and pedals. Tesla is keeping specifics to a minimum, but early reports suggest the Cybercab will feature a battery pack smaller than 50 kWh, yet still offering an impressive range of approximately 300 miles (483 km).

Progress on the Tesla Semi

Production of the Tesla Semi officially began in late 2022, but progress has been slow. Full-scale production is expected to kick off next year at a new factory adjacent to the existing Gigafactory in Nevada, which will significantly expand Tesla’s production capabilities.

While Elon Musk and President Trump have found common ground on many issues in recent months, tariffs remain a notable point of disagreement. Trump has famously called tariffs “the most beautiful word to me in the dictionary,” yet Musk has long championed free trade. In fact, according to Reuters, he urged Trump to lower tariffs, though he ultimately left the decision in the President’s hands.

One of the unanticipated consequences of the tariffs was their negative impact on domestic production. Tesla’s CFO, Vaibhav Taneja, noted that the tariffs hurt the company’s US investments, as the company had to import equipment from China to expand its local production lines.

Earlier this month, a Chinese auto blogger named Zurich Bei Le Ye went viral after claiming that the all-electric Avatr 12 isn’t as aerodynamic as the carmaker would have you believe. According to Avatr, the car boasts a drag coefficient (Cd) of 2.1, but after running his own tests, the blogger came up with a much less flattering result: 0.281.

Apparently, Avatr didn’t take too kindly to this and responded in the most dramatic way possible, by organizing a live wind tunnel demo for all to see. But that’s not all. Now, the company is suing the blogger.

Read: Chinese Carmaker Faces Backlash After Viral Video Claims It Lied About EV’s Drag Coefficient

The original claim from Bei Le Ye quickly made its rounds on Twitter and even caught the eye of none other than Elon Musk, who shared the post with his usual flair. Avatr invited Musk to attend the live demonstration, but unsurprisingly, he didn’t make an appearance. What Avatr’s demo allegedly proved was that the sedan can indeed hit the claimed Cd, but only under very specific conditions. In other words, the numbers can vary. Who knew?

This is wild: Elon reposted my tweet yesterday, which caught the attention of Avatr. Today, Avatr officially invites Elon to witness the retesting of Cd. Here is the translation, including the invite: 😂

“Tesla founder Elon Musk
recently retweeted inaccurate information posted… https://t.co/43l4cL5CkG pic.twitter.com/hfdJviuAuL

— Ray (@ray4tesla) May 7, 2025

Wind Tunnel Showdown

During the live test, Avatr recorded a Cd of 0.2175 at 120 km/h (74.5 mph), using a production model equipped with side cameras rather than the traditional wing mirrors the blogger had tested. The switch to low-drag wheels, which Avatr offers as an option, kept the numbers looking good. But when they swapped those out for sport wheels, the Cd jumped to 0.2326 in the same test. Not a huge increase, but enough to make a difference.

The real drama unfolded when they threw the regular wing mirrors and raised the suspension into the mix. That brought the Cd up to 0.2509, still not far from the blogger’s result. The ultimate test, however, involved opening the Avatr 12’s front grille, which caused the Cd to climb to 0.2743. Not quite the 0.281 the blogger recorded, but close enough to make you wonder if there’s more to the story.

Shortly after Avatr’s live test on Weibo, the blogger published what was expected to be an apology video online. However, in the clip, he claimed that Avatr was using a prototype in its tests, and not a production car. Avatr denies this accusation and has filed a civil lawsuit against the man. It is seeking 10 million yuan or about $1.4 million at current exchange rates for economic and reputational damage.

Avatr Says It’s A Smear Campaign

According to CarNewsChina, Avatr suspects the blogger may be part of a larger “black PR” campaign against the firm. If you’re unfamiliar with the term, it refers to a type of corporate sabotage where companies hire operatives to spread negative information about their competitors.

With the Chinese car market growing more competitive by the day, Avatr claims this kind of dirty tactic is becoming more common. In response, the company is offering a reward of 5 million yuan ($694,000) to anyone who can provide information about the alleged smear campaign.

Despite the uncertainty created by newly imposed tariffs, sales of electrified vehicles are still surging, with BEVs (battery electric vehicles) and PHEVs (plug-in hybrids) flying off the lots in record numbers. And it’s not just North America leading the charge, as markets like China and Europe are seeing even more impressive growth.

As we reported last month, global sales of BEVs and PHEVs had already topped 4.1 million through the first three months of the year. Now, with April’s figures in, the total for the first four months stands at an impressive 5.6 million units, according to data from RhoMotion.

April alone saw 1.5 million electrified vehicles sold, marking a 29 percent increase compared to the same month last year. That said, it’s worth noting a slight dip of 12 percent from March, which might suggest that the initial rush to purchase before the full impact of tariffs hit has already cooled off.

Read: Electrified Sales Are Surging Globally But A Dark Cloud Is Gathering

Continuing to lead the charge was China. A total of 3.3 million BEVs and PHEVs have been sold this year, representing a 35% jump from last year. Sales slipped 9% in April compared to the month prior, but were up 32% compared to April 2024.

It’s worth noting that the US and China recently announced a reduction in tariffs, including eliminating some and suspending others for 90 days. However, this move primarily affects parts in the auto industry, as Biden’s previously imposed electric vehicle tariffs remains firmly in place.

Across the Atlantic, North America has seen steady, if not explosive, growth. Sales have reached around 600,000 vehicles this year, a 5% increase from last year. While we don’t have a breakdown for the US, Canada, and Mexico, it’s reported that sales in Mexico have nearly doubled year-to-date.

JAN-APR EV & PHEV SALES

After a rough 2024 for EV and PHEV sales in Europe, things are looking considerably brighter this year. In the first four months alone, sales have surged by 25%, reaching 1.2 million vehicles. BEVs are leading the charge, with a 29% increase in sales year-to-date, outpacing the 16% growth in PHEVs. Germany (+42%), Italy (+56%), Spain (+57%), and the UK (+32%) are all reporting significant increases in sales. However, France is still struggling, with sales down 14% so far this year, a decline largely attributed to cuts in consumer incentives.

As Charles Lester, Rho Motion’s data manager, points out, “Ongoing tariff negotiations are dominating talk in the electric vehicle industry, but quietly, domestic manufacturers in China and the EU continue to perform well and grow market share.”

The next iteration of the Xpeng P7, previously known under the internal code name E29. had landed. The first official images released by the Chinese automaker reveal a striking new sedan that looks far more distinctive than Xpeng’s current lineup, which is a refreshing change considering how many electric vehicles these days blend into the same uninspired mold.

Designed by Rafik Ferrag, who also crafted the original P7, the front end of this new model seems to borrow a bit of design inspiration from the Lamborghini Revuelto and the local Honda S7. The fascia is dominated by sideways Y-shaped daytime running lights (DRLs) and a thin light bar, with the main headlamps nestled just below it. We can also see that the Xpeng badge up front is illuminated.

Read: Only Four EV Brands Are Profitable And Two of Them Might Surprise You

The fastback-style shape of the P7 is hard to miss, and the retractable rear spoiler only adds to its dynamic appearance. At the back, thin LED strips complement the front lights, giving the car a unified, contemporary look. Xpeng described the new model as “a bold, emotional, and athletic 5-seater coupe that raises the bar in both aesthetics and performance.”

This model may also mark the debut of Xpeng’s new Kunpeng EV platform, which could have the versatility to support range-extender options, though the company has yet to confirm any technical details. For now, it’s expected that the P7 will launch exclusively as an EV, potentially offering power and range figures similar to, or slightly better than, the P7+. That could mean up to 466 hp (348 kW) with dual motors, and a CTLC range surpassing 435 miles (700 km).

While Xpeng hasn’t shared any official interior teasers yet, spy shots circulating in China suggest it will feature a large central infotainment screen, as well as light purple leather seats. The P7 may also introduce a simplified vision-based advanced driver assistance system, in contrast to other Xpeng models that include LiDAR technology.

Dimensions for the car have yet to be published, but it looks longer than a Tesla Model 3, even if the American EV will be one of its prime competitors alongside Xiaomi’s popular SU7. Autohome reports that it’s expected to be unveiled in the third quarter of the year during the Guangzhou Auto Show, but we should get to see it in better detail earlier than that, thanks to China’s trusty Ministry of Industry and Information Technology.

Pricing and Availability

At this stage, Xpeng is referring to it as the next P7, although Chinese media reports suggest the company has secured the “P7 Ultra” name. Regardless of the final name, the car is expected to go on sale toward the end of the year, with pricing anticipated to be similar to the current model, which starts at around 250,000 yuan (roughly $35,000). That’s slightly higher than the entry-level Tesla Model 3, which begins at 215,900 yuan.

Owners of the Xiaomi SU7 have been quick to share their enthusiasm for the innovative electric vehicle, but they’ve also been equally eager to voice their concerns when things go south. Recently, this has included a backlash over a software update that drastically reduced the SU7 Ultra’s peak power from a 1,526 horsepower to a more modest 888 hp. Now, the latest source of frustration is the optional carbon fiber hood.

This new carbon fiber hood comes with a hefty price tag of 42,000 yuan, or about $5,800, and takes its design cues from the hood seen on the original SU7 Ultra prototype. It’s equipped with a pair of huge air ducts that Xiaomi claims enhance cooling. However, several Chinese automotive bloggers recently put the hood to the test, only to find it provides virtually no extra air flow, meaning it’s a mostly cosmetic, and not a performance upgrade.

Read: Xiaomi’s SU7 Ultra Software Upgrade Was A 650-HP Downgrade

One blogger, as reported by CarNewsChina, conducted a simple test by placing a piece of paper near the vents and positioning a fan at the front of the car. The result? The paper remained perfectly still, proving that the cooling benefits were nonexistent. It’s a bit of an embarrassing reveal for Xiaomi.

The Chinese automaker moved quickly to address the issue. It issued an apology, clarifying that the hood was primarily intended to mimic the design of the one from the SU7 Ultra prototype. Furthermore, Xiaomi admitted that the carbon fiber hood option was never part of the original plan during the development of the production model.

To pacify disgruntled customers, the company announced that those with undelivered orders could switch to the standard aluminum hood. For those who had already received their cars with the carbon fiber hood, Xiaomi promised 20,000 reward points, which translate to a meager 2,000 yuan, or around $275 at current exchange rates.

Understandably, this gesture has done little to satisfy everyone. Reports suggest that up to 300 owners have banded together to demand full vehicle refunds, with many feeling that the promised upgrade was little more than an overpriced piece of carbon fiber with no real benefits to back it up.

While Xiaomi has built a brilliant performance sedan with the SU7 Ultra, it seems its marketing team needs to improve its messaging, as any slip-up or using too much hyperbole may come back to bite it.

Many have lamented Toyota’s slow transition to battery-electric vehicles, but it’s now investing heavily in them, particularly in the Chinese market. The Japanese automaker’s next step could be to acquire one of China’s many small EV brands that have run into financial troubles: Neta.

Toyota has often been criticized for its slow move into the world of battery-electric vehicles. However, it’s finally starting to invest more heavily in them, with a particular focus on the Chinese market. The next logical step for the Japanese automaker could be to acquire one of China’s many small, struggling EV brands, and specifically, Neta.

Founded in 2014 by Hozon New Energy Auto, Neta has produced some appealing models, including the GT two-door sports car, the S sedan, and the S Hunting Edition, a sleek sports wagon. However, the company has faced significant financial challenges since mid-2024, which led to a production halt and layoffs.

Read: Neta S Hunting Edition Is A China Exclusive Sexy Shooting Brake

An investment deal was reportedly within reach earlier this year. In February, Neta secured an infusion of about $552 million to $621 million in new funding, but the deal was contingent on production resuming, something that never happened, causing the investment to fall through. Now, Toyota appears to be eyeing the opportunity and might look to acquire Neta’s assets.

According to a report from China’s Kuai Technology, Toyota is considering purchasing Neta. While there are no details yet on how much this acquisition might cost, Neta’s valuation was around 6 billion yuan (about $828 million) earlier this year. That’s pocket change for Toyota, which reported more than $130 billion in cash and equivalents at the end of 2024.

It’s worth noting that Xu Yiming, Toyota’s brand communications director in China, has denied any knowledge of the company’s interest in buying Neta, according to CarNewsChina.

If Toyota does decide to move forward with the acquisition, it would gain not only Neta’s assets and technology but also a better understanding of the competitive Chinese market. In 2024, Neta sold 64,500 vehicles, but by January of this year, it had only sold 110, an indicator of how dire the situation has become.

Ferrari’s first electric vehicle isn’t just a step towards reducing the automaker’s overall emissions, but it could also play a pivotal role in reviving the brand’s sluggish sales in China. However, despite the growing importance of EVs in China’s market, locals will have to exercise some patience, as deliveries of the Elettrica won’t begin until at least October next year.

Read: Listen To Ferrari’s EV Prototype Fake V8 Sounds

In addition to China being a booming market for EVs, there’s a growing fascination with high-performance electric models across the country, making it an ideal fit for Ferrari. Even better, the car, currently referred to as the Elettrica, will benefit from a much more favorable tax structure than Ferrari’s traditional gas-powered models.

While local taxes on the brand’s internal combustion engine (ICE) cars can reach up to four times the price of the vehicle, the Elettrica is expected to be taxed at a much more manageable 30% of its retail price.

Sales Decline Amid Economic Slowdown

According to Bloomberg, Ferrari’s shipments to China, Hong Kong, and Taiwan dropped 25% in the first quarter of the year, marking the lowest figures in almost four years. This decline is partly attributed to China’s economic slowdown, which led to a 20% decrease in sales of vehicles priced above 500,000 yuan (about $69,200). In 2024, this drop resulted in only 677,000 units being sold in that segment.

Earlier this month, Ferrari revealed that it will preview the powertrain of the Elettrica this October, before debuting the vehicle in full next spring. It is shaping up to be a hatchback-style crossover similar to the Purosangue, although it is tipped to be slightly smaller.

While Ferrari has kept many details under wraps, we do know that the vehicle’s battery pack, inverters, and electric motors are all being developed and produced in Italy. Recent patents also indicate that Ferrari might give the vehicle fake gears, much like the Hyundai Ioniq 5 N, as well as an ICE-inspired soundtrack.

The most recent patent says the Elettrica’s electric motors could be used to simulate the changing torque of a traditional engine and transmission. These virtual gears could be activated automatically based on throttle and brake outputs, or operated manually with the paddle shifters.

It’s no secret that Chinese automakers have been stepping up their design game, but sometimes, their inspiration tends to come from, let’s just say, more familiar places than they’d probably admit. Chery’s fairly new iCar brand already offers a few intriguing models, and now it’s working on a 4×4 that looks suspiciously like a Land Rover Defender.

However, unlike the British icon, this one comes without the history or prestige, meaning it’ll be far more affordable. It’s also expected to launch as a range-extender EV, which, if you haven’t noticed, is the current industry fallback for “We wanted to go fully electric but weren’t quite ready.”

Read: Chery’s iCar Expands Its Lineup With Rugged Minivans And Tougher SUVs

While the name iCar might bring to mind Apple’s long-abandoned EV project, it has no connection whatsoever to the tech giant. That said, the Chery-owned brand hasn’t just borrowed Apple’s naming vibe, as it also seems eager to echo the design of another Western staple, the current Land Rover Defender, all while keeping some visual ties to its own lineup, like the X23.

Spy photos from China’s Autohome reveal a front fascia that closely mirrors the Land Rover Defender, featuring headlights and a grille design that look nearly identical. The prototype also sports a blacked-out bumper, black fender flares, and matching rocker panels, all contributing to its deliberately rugged appearance.

The similarities keep piling up along the sides. There are small black vents on the quarter panel and chunky door handles. One notable difference is the fact that the iCar’s side windows appear much larger than those of the Defender and they seem to sit slightly below the line of the windshield. So there’s that.

At the rear, the prototype sports four square LED taillights. The third brake light has been positioned where you’d usually expect to find a spare wheel carrier, although for the iCar, it will likely serve as a small storage box.

Limited technical specifications are known about the model. However, Chery already has an impressive range-extender powertrain in its line-up that drives the Exlantix ET crossover and consists of a 1.5-liter turbocharged four-cylinder and two electric motors.

Familiar Face for a Fraction of the Cost

As for price, Chinese media outlets suggest a starting range between 200,000 yuan (around $27,600 at current exchange rates) and 250,000 yuan (roughly $34,500), making it significantly cheaper than anything coming out of Solihull. For comparison, the current Defender, the real one, starts from 688,000 yuan ($95,000), or more than three times the rumored price of the still-unnamed iCar SUV.

Autohome

Tesla’s massive factory in Shanghai, China, has the capacity to build roughly 1 million vehicles every year. However, it could fall quite short of that number this year based on disappointing sales figures of its Chinese-made models in April, which slipped 25.8% from the month prior.

The China Passenger Car Association revealed that a total of 58,459 Tesla Model 3s and Model Ys built in China were sold last month. Importantly, this figure isn’t a reflection of the total number of vehicles that Tesla sold in China alone, but also includes other markets where it sells Shanghai-built vehicles, including Europe and the Asia-Pacific region.

Read: Tesla Sales Crash Over 80% In Sweden And That’s Just The Beginning

This is just the latest episode of Tesla’s sales drop saga in recent days. In April, its sales collapsed in key European markets like Spain, Germany, Belgium, France, the Netherlands, and the UK. Its sales have also tanked in Australia, where, not too long ago, it was the EV leader. In April, seven other EV models from Chinese and Korean brands outsold the Tesla Model Y and Tesla Model 3.

Rivals Are Closing In

Many factors at play can help to explain why Tesla sales continue to fall. Obviously, negative public sentiment about chief executive Elon Musk is one of them, particularly due to his meddling in politics, not just in the US but around the world as well. Additionally, Tesla has a relatively limited and aging line-up of EVs compared to some of its competitors, with the Model 3 and Model Y being the serious volume sellers.

Rivals are also quickly gaining ground on the American brand. In April, Nio’s sales grew 53% from a year ago, with 23,900 vehicles sold. Additionally, Xpeng recorded its second-best month ever, securing 35,045 sales. Xiaomi also managed to deliver more than 28,000 vehicles in April while Li Auto’s sales rose 32% to 33,939.

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