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Chinese Automaker’s Mexico Factory Plans Derailed By US Politics

  • The Chinese automaker had been assessing three locations in Mexico for a new factory.
  • BYD initially paused its Mexican plans last year to see the outcome of the US election.
  • The company does have a presence in South America thanks to its new plant in Brazil.

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

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

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

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

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

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

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

From Pause in Mexico to Progress in Brazil

 Chinese Automaker’s Mexico Factory Plans Derailed By US Politics

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

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

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

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

 Chinese Automaker’s Mexico Factory Plans Derailed By US Politics

Only A Handful Of China’s 129 EV Makers May Survive Brutal Market Meltdown

  • As of 2024, 129 NEV companies were still active in the Chinese automotive market.
  • Consulting firm AlixPartners expects only 15 EV brands to be financially viable by 2030.
  • Only BYD, Li Auto, and Seres Group are currently profitable in the Chinese EV space.

The electric vehicle boom in China has reshaped the global automotive landscape, but not every player in the field is built to last. While China’s automotive industry has grown into a formidable force, a new report suggests that only a fraction of the country’s EV brands may survive the coming years.

Read: China’s Auto Industry Is A One-Way Street As Exports Boom And Imports Collapse

With hundreds of startups already gone and consolidation gaining momentum, China’s EV market is headed for a major transformation.

Industry Faces Sharp Consolidation

In 2018, it was estimated that over 500 companies in China were developing and planning to build “new energy” vehicles. Many of these companies failed to get off the ground and quickly folded. As of 2024, it’s understood that there were 129 companies selling NEVs in China.

According to consulting firm AlixPartners, just 15 of these are expected to remain financially viable through 2030. While the consultancy firm didn’t name which companies it expects to thrive, these 15 brands could account for roughly 75 percent of China’s total EV and plug-in hybrid market. Some of them have already reached full-year profitability.

According to the head of AlixPartners’ automotive practice in Asia, Stephen Dyer, some local governments may support non-viable companies to protect jobs and economies. As such, consolidation may proceed more slowly across the industry in the coming five years.

Intense Competition and Rapid Innovation

 Only A Handful Of China’s 129 EV Makers May Survive Brutal Market Meltdown

“China is one of the most competitive new energy vehicle markets in the world,” Dyer said. “It is experiencing a fierce price war. Its rapid innovation speed is constantly being refreshed by new forces. Such an environment drives significant breakthroughs in technology and cost efficiency, but it also makes it difficult for many businesses to become sustainably profitable.”

As we reported in March, only three EV brands in China are believed to have achieved profitability. These are BYD, Li Auto, and the Seres Group, which includes the Seres, Aito, and Landian brands. Some other local companies are edging towards profitability, including Zeekr, Xpeng, and Leapmotor.

 Only A Handful Of China’s 129 EV Makers May Survive Brutal Market Meltdown
Photos Newspress

Tesla’s Latest Headache Promises Up To 436 Miles For Nearly $10,000 Less

  • Xpeng has unveiled a new Tesla Model Y competitor known as the G7.
  • It comes nicely equipped and offers a range of up to 436 miles.
  • Power comes from a rear-mounted motor developing 292 hp and 332 lb-ft.

Aiming at both Tesla and Xiaomi’s recently launched YU7, a new electric SUV has just landed in China with a surprisingly accessible price. Xpeng has introduced the new G7, a high-tech alternative to the Model Y, which starts at ¥195,800 (around $27,325). That makes it ¥67,700 ($9,448) cheaper than Tesla’s established offering.

That’s a significant savings, but the G7 is pretty generic. That being said, the model features a shark nose front end with Xpeng’s “X Face.” The latter is represented by a full-width light bar that resides above headlights with angular daytime running lights.

More: Xpeng’s Latest EV Looks Like A Lamborghini Sports Sedan

Moving further back, we can see curvaceous bodywork and flush-mounted door handles. They’re joined by frameless side mirrors, black cladding, and 18- or 20-inch wheels.

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Out back, there’s a power liftgate with an angular window and wraparound taillights. The model is also notable for incorporating blue lights, which indicate when the car is being driven autonomously.

In terms of size, the model measures 192.6 inches (4,892 mm) long, 75.8 inches (1,925 mm) wide, and 65.2 inches (1,655 mm) tall, with a wheelbase that spans 113.8 inches (2,890 mm). To put those numbers into perspective, the G7 is 4 inches (102 mm) longer than the Model Y, despite having the same wheelbase.

A Minimalist Interior With Some Cool Touches

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The interior is elegantly minimalist, and it features a heated two-spoke steering wheel and a floating 15.6-inch display. The latter acts both as a digital instrument cluster and an infotainment system.

Despite the affordable pricing, even the entry-level model comes nicely equipped with power front seats that have heating, ventilation, and massage functions. Buyers will also find a floating center console with dual 50-watt wireless smartphone chargers.

Elsewhere, there are wooden armrests, a massive panoramic glass roof, and a 20-speaker audio system. They’re joined by a digital rearview mirror and a fragrance diffuser.

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Rounding out the highlights are a microfiber roof liner, a 256-color ambient lighting system, and 39 storage compartments, including a washable frunk and a password-protected glove box. Speaking of storage, the G7 has a cargo capacity of between 28.9 and 80.4 cubic feet (819 and 2,277 liters).

Rear seat passengers haven’t been forgotten as they’re treated to heated, ventilated, and massaging outboard seats. They’re accompanied by an 8-inch display and a fold-down center armrest that has two cup holders and a wireless smartphone charger.

Interestingly, there are fold-down tables that are mounted on the front seatbacks. They have integrated magnetic panels, which flip up to securely hold smartphones or tablets. The panels can be tilted between 0 and 90 degrees, ensuring a comfortable viewing angle.

Long Ranges And Rear-Wheel Drive

 Tesla’s Latest Headache Promises Up To 436 Miles For Nearly $10,000 Less

Three different trims are available, known as the 602 Long Battery Life Max, 702 Ultra-Long Battery Life Max, and 702 Ultra. As you’ve probably guessed, the numbers refer to CLTC ranges of 374 miles (602 km) and 436 miles (702 km).

Regardless of which trim is selected, all G7s are powered by a rear-mounted motor producing 292 hp (218 kW / 296 PS) and 332 lb-ft (450 Nm) of torque. This enables the crossover to accelerate from 0 to 62 mph (0-100 km/h) in 6.5 or 6.6 seconds, depending on the configuration. The crossover also has a top speed of 126 mph (202 km/h).

Charging stops promise to be relatively quick thanks to a 451 kW DC fast charging capability. It enables the crossover to get 271 miles (436 km) of range in as little as 10 minutes. If you can spare an extra two minutes, the battery can go from 10% to 80%.

AI And Numerous Driving Assistance Systems

 Tesla’s Latest Headache Promises Up To 436 Miles For Nearly $10,000 Less

Xpeng made a big deal about chips and artificial intelligence, claiming the G7 is the “world’s first AI car with L3 computing power.” We’ll save you the marketing malarkey and note the crossover has radar and ultrasonic sensors as well as an assortment of cameras and up to three Turing AI chips.

They allow for a host of advanced features, including “human-machine co-driving” and “high-speed intelligent assisted driving.” There’s also a summon function and remote parking.

 Tesla’s Latest Headache Promises Up To 436 Miles For Nearly $10,000 Less

Besides the semi-autonomous driving tech, there’s a host of familiar assistance systems including adaptive cruise control, lane centering, blind spot warning, rear cross traffic alert, and traffic sign recognition. The crossover is also notable for having an automatic emergency braking system that works at speeds up to 81 mph (130 km/h).

Another cool feature is the “light-chasing” panoramic head-up display, which was jointly developed with Huawei. It’s an augmented reality display that projects up to an 87-inch image in front of the G7.

This is most useful for navigation, but Xpeng also mentioned an awesome AR movie viewing mode. It can project videos when the vehicle is parked, effectively replicating the feel of a drive-in theater.

 Tesla’s Latest Headache Promises Up To 436 Miles For Nearly $10,000 Less

Jim Farley: “If We Lose This, We Do Not Have A Future Ford”

  • Ford CEO Jim Farley warns that China’s EV dominance could jeopardize the company’s future.
  • He says Chinese EVs lead in tech, cost, and quality, and the West is falling behind.
  • Ford is now pivoting from EVs to hybrids, but that may not be enough to stay in the race.

The EV race isn’t just heating up, it’s turning existential for legacy automakers. At the Aspen Ideas Festival last Friday, Ford CEO Jim Farley made that reality clear. If American car companies can’t keep up with China’s EV momentum, he warned, Ford’s future may be in jeopardy.

“We’re in a global competition with China, and it’s not just EVs,” he said before dropping the hammer. “If we lose this, we do not have a future Ford,” he said. This man isn’t speaking from hearsay either. He’s speaking from experience.

More: Thousands Of Chinese Cars Sank With This Ship And The Bill Keeps Climbing

His warning comes after a string of trips to China, six or seven in the past year, he says. There, he saw firsthand how fast Chinese automakers are outpacing the West. It’s the most humbling thing I have ever seen,” he explained.” Why be so blown away by a nation that can’t sell cars in the USA? It comes down to production.

Chinese EVs: High Volume, High Quality

According to Farley, not only is China making more EVs than anybody else, but their quality isn’t lacking either. “Seventy percent of all EVs in the world, electric vehicles, are made in China,” Farley said. That statement comes not long after Xiaomi launched the YU7, a $35,000 luxury SUV that allegedly has 200,000 orders already.

“They have far superior in-vehicle technology. Huawei and Xiaomi are in every car. You get in, you don’t have to pair your phone. Automatically, your whole digital life is mirrored in the car. Beyond that, their cost, the quality of their vehicles is far superior to what I see in the West,” Farley says.

So the message is clear. Farley wants to see the U.S. catch up with China as quickly as possible. Despite that, Ford is adapting its strategy to produce fewer EVs, not more. That’s because the markets Ford caters to seem more interested in hybrids right now. Business Insider points out that Ford’s shares are up by more than 9 percent so far this year.

Still, the larger question lingers: will adjusting course be enough to compete long-term in a global EV market increasingly defined by China’s dominance? Farley isn’t waiting for the answer; he’s already sounding the alarm.

 Jim Farley: “If We Lose This, We Do Not Have A Future Ford”

Tesla Model Y And 3 Get Surprising Speed And Range Upgrade In China

  • Tesla has boosted the range of certain Chinese EVs by 25 miles without increasing battery size.
  • Model 3 LR AWD is now rated at 468 miles, and the equivalent Model Y at 466 miles, on the CLTC.
  • Model 3’s 0-62 mph time drops from 4.4 to 3.8 seconds, but the improved sedan costs more.

Tesla’s new Model Y only made its debut a few months ago, but faced with flagging sales and aggressive rivals, the automaker is already making changes to make it and the Model 3 more appealing to buyers – specifically Chinese buyers.

Long Range AWD versions of the facelifted Model Y and Model 3 sold in China now go further on a charge and are faster from stoplights thanks to minor tweaks announced this week. Without changing the size of the battery, Tesla now claims the Y can do 466 miles (750 km) on a single charge, up from 447 miles (719 km) under China’s CLTC testing cycle.

Related: A Model Y Drove 30 Minutes To Deliver Itself To Its New Owner

And the Model 3 enjoys an even bigger boost, gaining 25 miles (40 km) to take total claimed range to 468 miles (753 km), though these numbers are Chinese CLTC figures and not comparable with more honest EPA estimates. Tesla quotes 327 miles (526 km) for a US-spec Y LR AWD and 346 miles (557 km) for a Model 3.

The Model 3 is also much faster following Tesla’s spec adjustment, needing just 3.8 seconds to hit 62 mph (100 km/h), rather than 4.4 seconds. It’s not clear how this was achieved, but Car News China speculates it could be because Tesla has made standard the Sports acceleration feature that was previously a ¥14,100 ($2,000) option.

 Tesla Model Y And 3 Get Surprising Speed And Range Upgrade In China
Tesla
 Tesla Model Y And 3 Get Surprising Speed And Range Upgrade In China

The Model Y is far less speedy, requiring 4.3 seconds. Neither of those acceleration figures matches up with the numbers Tesla advertises in Europe, where the Model 3 claims a 4.4-second 0-62 mph time, but the Y is said to need 4.8 seconds.

The upgrades come at no extra cost on the Model Y, which stickers at ¥313,500 ($43,800), but they add ¥10,000 ($1,400) to the price of a Model 3 Long Range AWD, which is now ¥285,500 ($39,900). For context, the equivalent Model Y in the US is $2,310 cheaper than in China, though only when factoring in the $7,500 federal tax credit, while the Model 3 is just $90 more expensive.

It remains to be seen whether these upgrades will make their way to other markets. Tesla hasn’t confirmed any plans yet, but buyers in Europe and North America will likely be watching closely to see if the same range and performance improvements roll out beyond China.

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Tesla

Nissan’s New Budget Electric Sedan Is Beating Mazda In China

  • The N7 is built on the Dongfeng eπ 007 platform with two battery options.
  • Nissan secured over 20,000 orders within six weeks of its China launch.
  • Pricing starts at $16,800 and tops out at $25,100 for budget buyers.

The new-age Leaf might be the spark that Nissan needs to capture public attention again, but it’s not the only model working in the brand’s favor. Another EV has been quietly gaining traction, and it might be an even more immediate success story.

We are, of course, talking about the N7 that was recently launched in China. Built through the Dongfeng-Nissan joint venture, it received more than 20,000 orders within six weeks of its release. Yes, that’s nothing compared to the 289,000 YU7 orders that Xiaomi claims to have locked in within just one hour, but over 20,000 is a respectable figure for Nissan and shows it’s at least done something right with its new EV.

Read: Nissan’s $17K Maxima-Sized EV Took Off In China And Now It’s Going Global

In a social media post, Nissan confirmed that after N7 deliveries began in China on May 17, it’s now celebrating the handover of its 10,000th unit to a customer after 45 days While that number isn’t especially notable for a new EV in China, it does stack up well against Mazda’s EZ-6.

According to Chinese media, Nissan reportedly delivered 3,034 N7s in May, while Mazda moved just 1,821 units of the EZ-6 during the same period.

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Part Japanese, Part Chinese, All Successful

One reason the N7 seems to be gaining traction is its approach, which aligns with that of many successful Chinese EVs. It delivers a well-rounded package, combining modern features and everyday usability at a highly accessible price. Depending on the trim, it starts at 119,900 yuan (around $16,800) and tops out at 149,900 yuan (about $25,100), making it a compelling option for budget-conscious buyers who still want a full-featured electric vehicle.

The N7 features a sleek, contemporary exterior that’s likely to resonate with a wide range of buyers. Inside, the cabin takes a minimalist approach, anchored by a large central infotainment screen, a digital gauge cluster, dual wireless smartphone chargers, and a clean, flowing dashboard. The two-spoke steering wheel, fitted with a pair of toggles, mirrors the design language seen in many other EVs currently on the Chinese market.

Encouraged by the strong response in China, Nissan now plans to bring the N7 to global markets. Although specific countries haven’t been officially confirmed, Japan and Australia are expected to be among the first. There’s also a strong possibility the model will be introduced in Malaysia and select European markets, if not across the region.

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Breakthrough EV Battery Patent Could Charge In Minutes And Cross A Continent

  • Huawei has developed solid-state battery tech that could make EVs go further and charger faster.
  • Cells have triple the energy-density of li-ion ones and could theoretically give an 1,800-mile range.
  • Chinese patent application says the new battery pack could be fully recharged in only five minutes.

Unless your daily commute involves chasing down a Cannonball Run record, chances are you’re not rolling around with a 70-gallon (265-liter) fuel cell in your car. Most of us don’t need to knock out 1,860 miles (3,000 km) in one uninterrupted stretch. But according to Huawei , that kind of range might soon be possible in an electric vehicle.

The Chinese tech giant claims its new battery technology could enable a future mid-size EV to cover that distance on a single charge.

Related: BYD’s New 1,000 kW EVs Fill Up As Fast As Gas Cars

Like Toyota, VW, BMW, Stellantis and other big players in the tech and automotive space, Huawei has spent the last few years working on solid state batteries, which most experts agree will bring a step-change in EV usability. And this month Huawei filed a Chinese patent for solid-state battery chemistry that comes with some bold claims.

The cells, whose sulfide electrodes are doped with nitrogen to reduce lifespan-shortening side reactions, have an energy density of 400-500 Wh/kg, the filing says, or triple the figure for current conventional cells. Huawei reckons that would allow a typical midsize sedan to cover 1,860 miles on a single charge. Oh, and that charge – to full, not 80 percent – would  take just five minutes.

The 1,860-mile figure would be based on China’s hopelessly optimistic CLTC calculations, so would probably translate to a 1,300-mile (2,090 km) EPA number. Slightly less spectacular, sure, but still around three times what the rangiest 2025 EVs can deliver on a single charge.

It all sounds incredible, but I have some reservations about it actually happening, and not because I doubt Huawei’s tech. No one buying an EV is going to need to travel that far between charges, especially if that EV can be charged in less than five minutes (being able to do that depends on having the infrastructure, but there’s no doubt that will come). And automakers won’t want to build one, anyway, since associated costs will be, at least at first, quite high.

 Breakthrough EV Battery Patent Could Charge In Minutes And Cross A Continent
Huawei

Even in a future where we can sleep while our car does the driving, we’re still going to need bathroom breaks and to stretch our legs with a quick stroll to keep the DVT at bay. And making an EV with an unnecessarily long range means making an unnecessarily heavy and expensive EV because batteries are heavy and expensive, though Huawei expects prices and weights to fall. As TG notes, even with the clever cells, an 1,860-mile EV would still need a battery pack that weighed as much as a Mitsubishi Mirage.

What’s far more likely is that automakers will use the tech to put smaller, cheaper batteries in their cars that still deliver plenty of range – say 600 miles (1,000 km) – but make those cars lighter, and so more efficient, and also less expensive to build and buy. When automakers can deliver an EV that costs less than a gas car, goes further in one hit and refuels faster, electric cars will really take off, infrastructure willing.

Toyota has already talked of its future EVs having a 750-mile (1,200 km) range and that sounds like more than enough to us. What do you think the optimum range is for a family-sized electric car?

 Breakthrough EV Battery Patent Could Charge In Minutes And Cross A Continent

Source: Car News China

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

  • The Chinese car giant has reportedly reduced output at several of its production plants.
  • One unnamed source says the cuts have been made as sales haven’t met expectations.
  • BYD dealers have an average of 3.2 months of supply, more than double the average.

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

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

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

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

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

Growing Pains

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

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

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

A Profitable, Yet Bumpy Ride

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

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

MG’s New EV For Europe Takes After Aston Martin

  • MG will show two new production EVs for Europe at the Goodwood Festival of Speed.
  • One of the models appears to be the IM Motors IM6 that’s already on sale in China.
  • The company will also bring the new Cyberster Black edition and the Cyber X concept.

The 2025 Goodwood Festival of Speed is just around the corner and MG is here with fresh teasers. The SAIC-owned brand with the British heritage will introduce two new EVs for the European market on July 10th. These will be joined by UK debuts of the Cyberster Black roadster and the Cyber X urban SUV concept.

Starting with the upcoming production models, MG refers to them as “two new, technologically advanced EVs”. A dark teaser suggests that one of them is the IM Motors IM6, which is already on sale in China. The same EV has also been announced for Australia with the unusual brand name “IM presented by MG Motor”, joined by a mechanically-related sedan. Hopefully the European-spec version will adopt a simpler naming scheme.

More: MG’s Electric Sports Coupe Heads Into Production This Year

The IM6 measures 4,904 mm (193.1 inches) long and has a coupe-SUV silhouette with LED taillights reminiscent of Aston Martin. Its most powerful version generates 767 hp (572 kW / 778 PS) and 802 Nm (591.5 lb-ft) of torque from dual electric motors, allowing for a 0-100 km/h (0-62 mph) sprint in 3.48 seconds.

MG said that one of the new models will “unleash its phenomenal EV acceleration on the iconic hill climb”, although it didn’t get into specifics.

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Visitors at Goodwood will also be able to check out the MG Cyberster Black, a special edition of the electric roadster featuring a black exterior with contrasting chrome accents and a matching interior. MG has recently introduced a few updates for the Cyberster, alongside the addition of the Cyber GTS coupe bodystyle flavor.

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

As for the Cyber X, it arrives in the UK after its debut at the 2025 Shanghai Auto Show last April. The concept which is believed to preview an urban SUV for production features rugged styling and pop-up headlights, with an off-roader stance reminiscent of a mini Land Cruiser.

Another model that will be put through its paces at the hill climb is the MG EX4 EV, returning this year with a new livery inspired by the Metro 6R4 Group B rally car of the 1980s. Furthermore, the company’s stand will also include the fully electric MGS5 SUV and MG4 XPower hatchback, as well as the new generation of the HS SUV.

MG is currently present in nearly 120 countries all around the world. In Europe, it sold 240,000 units last year and hopes to further increase that number by introducing more models in a variety of segments.

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

  • BYD has already imported over 22,000 EVs into Brazil during the first five months.
  • Carmakers can currently import thousands of vehicles without paying import tariffs.
  • BYD has delayed the planned opening of its Brazilian production plant until late 2026.

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

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

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

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

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

The Chinese Have Arrived

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

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

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

Local Production

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

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

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

How Toyota’s $15K EV Ended Up Costing $48K In Its First Export Market

  • Toyota’s EV reaches its first export market with a shocking $48,000 starting price tag.
  • Hefty taxes and fees push the bZ3X crossover well beyond reach for most local buyers.
  • Toyota hasn’t revealed which other international markets will get the new bZ3X next.

Affordable electric cars are no longer just a pipe dream or limited to niche startups. Some of the biggest automakers are now stepping into the space, and the results are getting interesting. The Toyota bZ3X is a clear example that the Japanese giant, despite years of skepticism about EVs, can build a budget-friendly electric vehicle. Well, at least, with some help from its Chinese partners and manufacturing infrastructure.

One of the first markets outside of China where the bZ3X was launched is Ethiopia. It has been revealed that the electric SUV will be sold through select dealers in Addis Ababa and private importers, with prices starting at 6.3 million birr, or approximately $48,000. Local shoppers have pricey duties to blame for the bZ3X’s massive price hike.

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

According to Birr Metrics, the new Toyota is subject to a 35 percent customs tax, an excise tax of up to 30 percent, VAT of 15 percent, a 10 percent surtax, and a 3 percent withholding tax. Talk about tax overload. Given the EV’s starting price, it’ll remain far out of reach for most new car buyers in Ethiopia.

Interestingly, the market for EVs is growing rapidly in the country. In early 2023, there were just 4,600 registered personal EVs, but this has increased to around 14,000 this year. In 2024, over 60% of newly registered cars were also EVs. This comes even though Ethiopia’s charging infrastructure remains underdeveloped, with most public chargers found in the nation’s capital. The country aims to have 3,000 charging stations operational by 2030.

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Will It Be Sold Elsewhere?

Toyota has not yet announced what other markets the bZ3X will be sold in. If it can become available in regions like Europe, Southeast Asia, and Oceania, it could become quite popular, depending, of course, on its price.

In China, buyers can choose from three battery configurations: a 50.03 kWh LFP pack, a 58.37 kWh mid-range option, and a top-tier 67.92 kWh battery. These versions are labeled 430, 520, and 610 respectively. Pricing starts at 109,800 yuan (about $15,200) for the base 430 model, or as low as 104,800 yuan (around $14,500) with available subsidies. At the top of the range, the 610 Max trim goes up to 159,800 yuan (approximately $22,000).

Despite its entry-level pricing, the bZ3X doesn’t skimp on features. The cabin includes a large infotainment screen, digital instrument cluster, wireless phone charger, ambient lighting, and a standard 11-speaker Yamaha sound system. It’s well equipped for the price point.

The bZ3X is just one part of Toyota’s growing EV push in China. The company has been rolling out several surprisingly affordable models, including the bZ5 crossover aimed at the Tesla Model Y, which starts at 129,800 yuan (around $17,900). There’s also the upcoming bZ7 large sedan, expected to launch later this year at a price just north of $20,000.

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The $20K EV Bargain That Might Be Watching Your Every Move

  • China’s EV price war has created domestic bargains the West can only dream about.
  • Models like the Mazda EZ-6 sedan and Toyota bZ5 SUV cost less than $25k in China.
  • Security professionals are concerned about the spying opportunities for China’s govt.

Shopping around for insurance quotes for my 17-year-old learner driver son here in the UK, I found several companies offering cover at half the price of the big names. But when I re-ran the quotes again to see how much the premiums would change when he’d passed his test, the ‘bargain’ policies had ballooned to 10 times the price of the other initially more expensive rivals.

Also: Mazda’s Sportier 6e Sedan Launches With A Price Tag That Feels Like A Typo

Now some experts claim that China’s bargain EVs might also come with a hidden cost buyers won’t discover until much later – or until it’s too late.

Experts Worry About Compromising Security

The difference is that the claimed cost wouldn’t be financial, but made up of data and control. Some security professionals have raised concerns that the modern generation of ‘smart’ Chinese EVs could potentially allow carmakers and hackers, or more specifically China’s ruling forces, to spy on drivers, monitoring where they go, what they do, who they communicate with and about what.

A few experts have gone further, warning that smart EVs could even be remotely controlled, which could cause chaos in busy cities if they were immobilized, or even enable bad actors to use cars as remotely-operated weapons. It’s concerns like these – and not just fears for the longevity of America’s domestic auto industry – that prompted the Biden Administration to increase tariffs on China’s EVs.

In the UK, military and intelligence bosses were ordered this year not to discuss any sensitive work issues while riding in EVs, and vehicles containing Chinese components are now banned from some military facilities, BBC News reports.

When In Rome (Or Beijing)…

But it’s easy to see how buyers, particularly in China, would be seduced by the bargain prices of a modern EV. While the People Republic’s EVs look good value in Europe, a big chunk of their advantage has been nixed by import tariffs. But in their home market, which is in the grip of an aggressive price war, buyers must think it’s Christmas every time they check out a local dealership.

 The $20K EV Bargain That Might Be Watching Your Every Move
Mazda

Mazda’s stylish new EZ-6, is a BMW 3-Series rival but is priced from only ¥161,800 ($22,500), and Toyota’s bZ5 SUV starts at just ¥129,800 ($18,100) – half the price of Tesla Model Y . Cars like these offer a huge bang for the buck if you’re willing to take the chance on the security risk.

Also: Chinese EVs Banned From Military Sites Amid Fears They’re Watching Every Move

The Chinese government claims there is no risk, telling BBC News that accusations of espionage were “absurd” and made without any supporting evidence, and that businesses operating abroad are required to comply with local laws. That view is supported by some independent security experts who suggest China and its carmakers want to maximize economic growth and aren’t Bond-level bad guys obsessed with surveillance.

Would security concerns put you off buying a Chinese EV, or would the lure of a $20k price be too much to overlook?

 The $20K EV Bargain That Might Be Watching Your Every Move
Toyota

Buick’s Electric Crossover Just Got A Lot Better In China

  • Buick has detailed the facelifted E5 crossover, which features a host of improvements.
  • Besides a fresh face, the EV has an upgraded interior with a new AI assistant.
  • The E5 will be offered with a front-mounted motor and three battery packs.

Following a preview earlier this month, Buick has officially launched the facelifted Electra E5 in China. According to the brand, it features 47 “user-driven upgrades” as well as revised styling and an improved powertrain.

The automaker was coy on specifics, but the crossover adopts a streamlined and less fussy design. As part of the makeover, the faux grille has been replaced by a stylish shark nose front end with soft curves and a sportier bumper.

More: Buick Electra E4 Unveiled As The Second Ultium EV For China

Elsewhere, there are hidden door handles, rain-sensing wipers, and subtle matte silver trim. The new E5 also sports “more fashionable and dynamic” taillights as well as 18- or 19-inch wheels, while higher-end variants add rear privacy glass and a panoramic sunroof, among other things.

A Familiar But Upgraded Interior

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The interior appears to largely carryover, but Buick made a number of minor improvements. Key among them is the expanded use of soft-touch materials, which now cover 64% of contact surfaces. The rear seats also recline by 27 degrees for a more relaxed posture.

On the technology front, there’s a 30-inch curved display that supports Apple CarPlay as well as iOS 26. Buick also confirmed the E5 comes with SAIC-GM’s first AI voice assistant. It promises to respond in a matter of milliseconds and can execute up to ten sequential voice commands. The assistant also integrates with other AI models such as DeepSeek, Doubao, and ERNIE.

If you’d rather sit in silence, no problem as the crossover has “premium” insulation and double-layer acoustic glass. This results in an interior noise level of 22 dB which, according to its maker, make it one of the quietest EVs on the market.

 Buick’s Electric Crossover Just Got A Lot Better In China

In terms of equipment, the entry-level model comes with a leather-wrapped steering wheel and an eight-speaker audio system. They’re joined by fabric and leather front seats with eight-way power adjustment on the driver’s side. Higher-end models are more luxurious as they have heated leather seats and a 14-speaker Bose premium audio system.

Customers will find a host of standard driver assistance systems like adaptive cruise control, lane centering, and forward collision warning. Moreover, the safety equipment list includes automatic emergency braking, blind zone alert, and lane departure warning.

Three Batteries And One Electric Motor

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Three different powertrains are available. The entry-level model feature a 65 kWh lithium iron phosphate battery that provides a CLTC range of 320 miles (515 km) and is paired to a front-mounted electric motor producing 241 hp (180 kW / 245 PS) and 243 lb-ft (330 Nm) of torque. This enables the E5 to accelerate from 0-62 mph (0-100 km/h) in 7.7 seconds and hit a top speed of 112 mph (180 km/h).

The next version comes with a 68.4 kWh ternary lithium battery, which increases the range to 339 miles (545 km). Despite having the same motor, it is a tad quicker as 62 mph (100 km/h) from a standstill come in 7.5 seconds.

Drivers who need to travel long distances will likely opt for the range-topping variant of the E5. This comes with a 76.8 kWh lithium iron phosphate battery, which provides 385 miles (620 km) of range. However, it’s the slowest of the lot, sprinting to 62 mph in 7.8 seconds.

 Buick’s Electric Crossover Just Got A Lot Better In China

Some details were undoubtedly lost in translation, but the press release implied the crossover has a new electric motor that was developed in-house. It’s oil-cooled and promises “industry-leading” high-speed efficiency.

Buick also noted the E5 has battery cells co-developed with CATL. This helped pave the way for a 30% increase in charging speed, meaning a 20 minute stop can deliver up to 217 miles (350 km) of range.

Pricing starts at ¥149,900 ($20,852) for the entry-level version and climbs to ¥169,900 ($23,635) for the range-topping Premium Edition. However, you’d better like black, white or gray ,as those are the only colors available, at least initially.

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Chinese Dealers Sell Zero-Mileage Cars As Used To Cash In On Subsidies

  • More than 4 million people have applied for trade-in subsidies in China this year.
  • The Chinese government has committed to funding the program throughout 2025.
  • Some businesses are selling new cars as ‘zero-mileage used cars’ to get the subsidies.

China’s car market has been riding high, fueled by generous government subsidies. Dealers are taking advantage of this in numerous ways, including some less scrupulous ones selling zero-mileage cars as “used” to pocket trade-in subsidies meant to help consumers. Now, at least six cities and municipalities have hit the brakes on these subsidies, meaning local buyers will soon face higher costs when driving off with a new car.

The pause comes on the heels of concerns over the long-term fallout from the ongoing automotive price war sweeping through the nation.

Read: The Company That Started The EV Price War Now Says It’s Gone Too Far

In cities like Zhengzhou and Luoyang, local governments have announced a break in the program, citing the depletion of the initial round of funding from Beijing. Other cities, including Xinjiang, Chongqing, and Shenyang, to name a few, have hopped on the bandwagon, suspending a subsidy initiative that was originally meant to stimulate consumer spending during China’s ongoing economic struggles.

Reuters reports that subsidies like those in effect for the auto industry, as well as electronics and home appliances, contributed to a 6.4% growth in local retail sales for May. What’s more, data from the Ministry of Commerce reveals that through the first five months of this year, there have been more than 4 million applications for car trade-in subsidies.

 Chinese Dealers Sell Zero-Mileage Cars As Used To Cash In On Subsidies

Some Are Taking Advantage Of The Subsidies

While the subsidies help make cars more affordable, the program is being abused. For example, there’s a growing trend of new cars being heavily discounted and sold as “zero-mileage used cars” to quickly shift inventory. Additionally, many dealers are describing new cars as used vehicles that can be traded in, making them eligible for the subsidies.

Local reports state that these practices are one of the reasons why the subsidies have been used up quicker than expected, prompting suspensions.

The country’s National Development and Reform Commission and Ministry of Finance say the subsidy program will continue throughout this year, although it’s not known when more funds will be released by Beijing.

 Chinese Dealers Sell Zero-Mileage Cars As Used To Cash In On Subsidies

Ford Exec Declares Engines No Longer Matter, Enter Outsourcing And China

  • New car buyers differ a lot from those of, say, 30 years ago and have another set of priorities.
  • Ford’s Vice Chair believes that consumers are no longer interested in what’s under the hood.
  • This gives automakers the freedom to outsource their engines and, thus, reduce production costs.

Since internal combustion engines were adopted as the de facto mode of propulsion for automobiles, they became one of their most defining characteristics. Sonorous Italians, ultra-high revving Japanese, or “no replacement for displacement” Americans: those stereotypes exist simply because said engines became synonymous not just with certain models, but brands (and even countries) as a whole.

Today, we live in a world that has experienced a rapid technological advancement in a relatively short time, and cars are no exception. In fact, they have become just another commodity to the new generation of buyers who, if at least one exec is to be believed, simply don’t care what’s under the hood of their ride.

More: Ferrari Just Delayed Its Second EV Because Rich People Can’t Kick Their Combustion Habit

That executive is none other than Ford Vice Chair John Lawler, so his opinion has a certain gravity. “I don’t think that consumers really think about powertrains the way they did 30 years ago”, he said on May 28 during Bernstein’s strategic decisions conference, according to Autonews.

 Ford Exec Declares Engines No Longer Matter, Enter Outsourcing And China

He is probably right. The shift to electrification has transformed the way new car buyers view their purchases, and it’s not just electric vehicles, but hybrids that have contributed to that. Blame the effort to reduce CO2 emissions if you have to, but there’s no hiding from the truth; nowadays, cars fall under the “white goods” category, and romantics be damned.

“Where [combustion engines] defined what a vehicle was – the horsepower, the displacement, the torque and everything about the vehicle – I think a lot of that is gone,” Lawler explained.

Music To Automakers’ Ears

Sure, in certain niches combustion is still king, but the vast majority of customers don’t give a damn whether their car comes with an ICE, hybrid or all-electric powertrain as long as it’s priced withing their reach and has the features and range they desire. And while petrolheads may bemoan that reality, automakers welcome it with open arms.

That’s because it opens up hitherto unavailable possibilities. Since engines are no longer a defining trait, each brand is free to choose from a much wider array of units. What’s more, it doesn’t even have to make them itself which, much to shareholders’ joy, will lower costs and increase profit – plus it can benefit the end user, who won’t have to pay the premium needed to cover the R&D each maker’s department spent in creating each engine.

Parts sharing is nothing new, and neither is engine sharing, even if carmakers don’t exactly advertise the fact that an Audi’s V10, for instance, is basically the same as a Lamborghini‘s despite the latter having a significantly higher price tag.

 Ford Exec Declares Engines No Longer Matter, Enter Outsourcing And China

Some have already formed partnerships to develop and built new powertrains that will be used in a multitude of models with different badges and even sold to third parties who want to cut down on costs (ed’s note: who doesn’t?). Horse, Renault’s and Geely’s joint venture, is a good example.

“It’s a win-win business model for everybody,” Horse Powertrain CEO Matias Giannini said during the Shanghai auto show two months ago. Of course it is: everyone gets what they want, so everyone’s happy. And there’s nothing wrong with that, is there?

The China Syndrome

Another factor that plays a huge role is China. Its automakers are making inroads left, right, and center and buyers are lapping up what they have to offer. According to Lawler, the costs they incur are 30 percent lower than anyone else in the world. How can you compete with that?

More: Automakers Found A Sneaky Way To Charge You More Without Touching The Sticker

The answer is simple: you don’t. And since you can’t beat them, your best course of action is to join them. The Blue Oval’s Vice Chair claims that the Chinese have 10-11 million units of excess capacity and they’d love for foreigners to come in and fill that void.

 Ford Exec Declares Engines No Longer Matter, Enter Outsourcing And China

And come they will, because they won’t say no to a 30 percent cost reduction. Especially since the well that used to be the Chinese market has now dried up and locals increasingly flock to domestic brands, much to legacy automakers’ dismay and loss of serious income.

No need to fret, fellow petrolheads. We can always hold on to our rides for as long as it’s legal to drive them on public roads; then, there’s always the track. The one thing we can’t do is hold back progress. Besides, even Henry Ford famously said “If I asked people what they wanted, they’d tell me ‘a faster horse'”, and that shows, yet again, that customers don’t create the future; visionaries do.

Whether it’ll be a better future or a dystopia is up for debate. Sadly, we probably won’t be around to find out, so it’s a moot point anyway as far as we’re concerned. Let’s burn some rubber while we still can, shall we?

 Ford Exec Declares Engines No Longer Matter, Enter Outsourcing And China

China’s Most British Roadster Freshens Up For 2026

  • The 2026 MG Cyberster gets several updates, including the new Cyber GTS Coupe.
  • The electric roadster with scissor doors is now available in new color combinations.
  • A revised chassis setup is expected, along with other performance enhancements.

Electric roadsters may be few and far between, but MG is pressing on with its drop-top EV experiment. The MG Cyberster, a fully electric roadster blending British style with Chinese engineering, is set to receive a round of updates for the 2026 model year, just two years after it first launched.

After making its first public appearance at the 2025 Shanghai Auto Show last April, the updated 2026 Cyberster is now scheduled to go on sale in China on June 30.

More: MG’s Electric SUV Looks Like A Mini Land Cruiser With Pop-Up Lights

The exterior design stays the same, but the color palette now includes two new shades: Iris Green and Andes Gray. The former first appeared on the Cyber GTS coupe showcar, which joins the production lineup this year alongside the convertible. MG is also introducing a Cyberster Black Edition, featuring a fully blacked-out exterior paired with polished alloy wheels for contrast.

Inside, designers added two new color combinations for the upholstery – black and red or gray and white. Furthermore, there is an extra wind deflector that supposedly improves comfort when the roof is down, plus electric lumbar support for the driver and passenger seats.

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Chinese media have reported that the 2026 MG Cyberster will also offer more boot space than the outgoing model. Other updates include something MG is calling a “convertible counter function”, along with new sound effects and a more responsive voice recognition system.

Powertrains appear to carry over unchanged. The roadster, along with its mechanically related coupe sibling, will continue to offer a single-motor rear-wheel-drive setup delivering 335 hp (250 kW / 340 PS), as well as a dual-motor all-wheel-drive version with 536 hp (400 kW / 544 PS).

More: MG Majestor Is A Flagship SUV With Rugged Looks And A Ladder-Frame Chassis

Under the surface, expect a few key updates. Reports suggest the 2026 Cyberster will receive revised chassis tuning and an extended battery range, made possible by software enhancements. The current model comes with either a 64 kWh or 77 kWh battery pack in China, offering a CLTC-rated range of 501 to 580 km (311 to 360 miles).

Pricing for the refreshed model hasn’t been announced yet. For reference, the current version sells for between ¥319,800 and ¥365,800 (roughly $44,500 to $50,900) in the Chinese market. It’s likely that these 2026 updates will roll out to export markets, including the UK, later in the year.

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SAIC MG / Weibo

The Company That Started The EV Price War Now Says It’s Gone Too Far

  • BYD’s executive vice president says the current pricing strategy is not sustainable.
  • Chinese regulators urge automakers to end destructive pricing and self-regulate.
  • Market competition has slashed EV prices lower than U.S. budget subcompacts.

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

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

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

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

BYD Has Its Say

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

 The Company That Started The EV Price War Now Says It’s Gone Too Far

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

The Expansion Continues

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

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

 The Company That Started The EV Price War Now Says It’s Gone Too Far

What Looks Like A DIY Disaster Is China’s Answer To Porsche

  • BYD’s prototype looks like a project car but it’s based on the Denza Z concept.
  • Denza’s electric coupe features adaptive suspension and a dual-motor AWD setup.
  • A production version is expected to be introduced within the next two years.

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

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

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

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

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

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Photos Autohome

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

The Powertrain

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

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

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

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A $7,000 Midsize SUV? CEO Says It’s Closer Than You Think

  • A Chinese car boss claims mid-to-large SUVs could one day sell for the price of a 15-year old.
  • Leapmotor CEO Zhu Jiangming claims the integration of chips will soon help slash production costs.
  • He said it was “reasonable” to imagine proper family-sized utilities being sold for ¥50,000 ($7,000).

How much would expect to pay for shiny new midsize or large SUV? Around $40,000 at best, and perhaps as much as $70k, right? Now imagine bagging something like that for just $7,000, the kind of money that right now would get you into a 15-year-old Toyota Corolla with almost 200,000 miles (320,000 km) on the odometer.

It sounds absurd, but one senior auto exec thinks it’s a real possibility. Not in the US or Europe, unfortunately, but in China, where the auto industry is on the verge of imploding due to a price war that will inevitably wipe out multiple brands over the next few years.

Why Leapmotor’s Boss Thinks Costs Will Tumble Down

Leapmotor CEO Zhu Jiangming said in a recent interview that it would be “reasonable for automakers to sell a mid-to-large SUV for 50,000 yuan (7,000 USD)” in the future. Those are the kind of numbers that would make a Western car boss like Ford’s Jim Farley laugh out loud – and, in the future, probably burst into tears at the prospect of a possible takeover. And remember, Stellantis, the parent company of Jeep, owns 20 percent of Leapmotor.

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

Just ask the likes of Volvo or MG, to name but two legacy brands that were bought, and saved, by the Chinese. Or Jaguar and Land Rover, two of the British crown’s jewels, that are owned by Tata Motors (whomever said history is not without a sense of irony was dead right). Sadly for Saab that was condemned under GM’s stewardship, its own rescue attempt was too little, too late; then again, in the industry, we’ve learned to never say never…

Cars As White Goods? But Of Course They Are!

 A $7,000 Midsize SUV? CEO Says It’s Closer Than You Think
Leapmotor

Back to Zhu Jiangming’s claims. One may dismiss them how much they want, but he has some proven case studies from other industries to back up the theory. It’s all to do with how advancing technology and the integration of chips could radically reduce the build costs for modern vehicles. Zhu cited the case of electronic products such as big 100-inch TVs, which now sell in China for less than $850, CarNewsChina reports. Or air conditioning units that can now be bought for just over $150.

Leapmotor still has some way to go before it can start advertising BMW X5-sized SUVs for $7,000. Its six-seat C16 costs from $24,000-27,000, Autohome says, yet it’s already a bargain by US pricing standards.

You Want A Battle? Here’s A War

Zhu’s comments will no doubt have been met with some serious eye-rolling by Wei Jianjun, CEO of rival carmaker Great Wall Motor. He recently warned about the dangers of China’s auto price war, suggesting the industry had its own version of Evergrande, the Chinese property developer that went bust last year.

Wei didn’t name the company but following online speculation that he’d been referring to BYD, who recently cut the price of its Seagull EV to less the equivalent of $7,700, that firm’s general manager Li Yunfei publicly refuted the idea the country’s auto sector was in crisis.

 A $7,000 Midsize SUV? CEO Says It’s Closer Than You Think

Buckle Up Dorothy, Cause Market Share Is Going Bye-Bye

That remains to be seen, but some things are already clear. First, the Chinese are on a roll, and the rest of the world is already considering them to be an existential threat. The switch to electrification all but eliminated any advantages established automakers had during the ICE period (if you’ll excuse us the pun) and leveling up the playing field.

And with competitive products and significant price advantages on their side, brands from the People’s Republic are laughing all the way to the bank.

Also: Toyota’s New Model Y Rival Just Launched In China For Less Than A Used Corolla

Sure, there will be some form of consolidation among them, but that will be little comfort to Western companies that seem to be fighting a losing battle. Even US President Donald Trump, who initiated a head-on collision, soon realized that this course of action wouldn’t work against China anyway, so he seems to have backtracked .

This leaves Europe, which has close to no bargaining chips and is already facing financial turmoil, as the one likely to be left standing in this round of musical chairs. Its biggest player by far, the VW Group, is in all hands on deck mode as it fights in multiple fronts to ensure it survives with as less damage as possible.

What about Stellantis, you ask? Well, if you’ve been reading the news lately you must have gotten the general picture – but the details are a different story worth another, rather big, article…

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Leapmotor

This Chinese Sedan Didn’t Just Crush A Porsche, It Beat A Hypercar At Nurburgring For A Fraction Of Their Price

  • The production Xiaomi SU7 Ultra with the optional track pack lapped the Nurburgring at 7:04.957.
  • This might be slower than the prototype, but enough to crown it the fastest production EV.
  • The electric sedan outperformed the rival Porsche Taycan Turbo GT, and the Rimac Nevera.

Breaking speed records isn’t just reserved for hypercars these days. Xiaomi, better known for smartphones than for chasing lap times, caught out attention last year when a prototype of its SU7 electric sedan clocked a 6:46.874 at the Nurburgring. Now it’s back with something more official. The production version has secured the title of fastest electric vehicle at the Green Hell, posting a verified lap time of 7:04.957.

More: Xiaomi SU7 Ultra Smashes Taycan Turbo GT’s Lap Record At Shanghai Circuit

Despite being a full 18 seconds slower than the stripped-out prototype that came with more aggressive aero, the production Xiaomi SU7 Ultra was faster than the Rimac Nevera hypercar (7:05:298) and the Porsche Taycan Turbo GT (7:07:55).

Faster Than a Rimac. Yes, Really

While the new time is a full 18 seconds slower than the earlier prototype run, which featured stripped-out weight savings and more aggressive aerodynamics, the production SU7 Ultra still managed to outpace all the heavy hitters. It not only beat the Porsche Taycan Turbo GT’s time of 7:07.55, but also edged out the Rimac Nevera, which previously clocked a 7:05.298.

Xiaomi hasn’t confirmed who was behind the wheel for the Nurburgring run, but it did clarify that the car used was a production-spec model fitted with the optional track package.

CEO Lei Jun added that this won’t be the last we see of Xiaomi at the ‘Ring, suggesting the company is settling in for the long haul. To back it up, Xiaomi released an onboard video of the lap, which was also picked up by the official Nurburgring website and YouTube channel.

The video shows that the EV reaching 345 km/h (214 mph) on the long straight, just shy of its claimed top speed of 350 km/h (218 mph). Powering that performance is a tri-motor setup delivering a combined 1,527 hp (1,138 kW or 1,548 PS) and 1,306 lb-ft (1,770 Nm) of torque. That’s enough to send the Xiaomi SU7 Ultra from 0 to 100 km/h (0–62 mph) in just 1.89 seconds.

More: Xiaomi’s First SUV Looks Like A Ferrari But It’s Priced Like A Tesla

Interestingly, SU7 Ultra owners don’t get the full 1,527 hp right out of the box. By default, the car delivers around 888 hp (900 PS or 662 kW). To unlock the rest, drivers need to complete a qualifying lap on a Xiaomi-approved track. The car’s onboard Qualifying Mode logs and verifies the lap time, proving whether the driver can handle the extra power.

Hypercar Numbers, Mid-Range Price

Despite offering performance and specs that rival hypercars, the Xiaomi SU7 Ultra is surprisingly affordable. The performance flagship starts at ¥529,000 (about $73,600) in China, making it significantly less expensive than the Porsche Taycan Turbo GT, which starts at ¥1,998,000 ($278,000) locally.

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Xiaomi

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