More than half of all new cars sold in China are electric or hybrid, with registrations tripling since 2021.
Some experts predict the country’s gasoline consumption could begin to drop by 4 to 5 percent every year.
The People’s Republic accounts for nearly one-fifth of global oil demand, but that may sharply decline.
China’s EV market is booming. Sales of fully electric and hybrid cars have trebled over the last three years and are almost eight times higher than they were in 2020. It’s a great time to be an automaker selling electrified vehicles, but not so great if you’re an exec in the oil industry.
Almost one-fifth of the world’s oil production currently goes to China. The country has provided most of the industry’s growth since the millennium, as it has for the auto industry and others. But now analysts think China’s love for EVs will result in a marked drop in demand for gasoline, which accounts for 25 percent of the nation’s oil consumption.
One brokerage firm told reporters it expects Chinese gasoline use to drop by between 4 and 5 percent every year between now and the end of the decade. A demand reduction was always forecast, but China’s electric boom means it’s happening much faster than many experts had anticipated.
One in 10 cars currently on the road in China is electrified, but at the current sales rate, the mix is expected to double by 2027 and could reach 100 percent by the 2040s, Anders Hove, a China researcher at the Oxford Institute for Energy Studies, told Bloomberg.
That kind of shift would have a devastating impact on the oil industry, Hove predicting that China’s oil demand for light vehicles would plummet from its current 3.5 million barrels per day to just 1 million by 2040.
Though that’s a major problem for Big Oil, it can at least take some comfort in knowing that other nations are in far less of a rush to abandon their combustion cars – EVs only account for 10 percent of US car sales. And even in China, a big chunk of the growth in electrified vehicles has come from sales of PHEVs, which still need some gasoline, though exactly how much they need in real ownership scenarios across China still needs more investigation.
There’s a chance the Chinese giant could sell 4 million vehicles this year.
BYD was just 10,000 units shy of topping Stellantis and being the fifth-largest automaker in the world.
Sales of China’s other two big car companies also rose during the July-September period.
BYD was the sixth-largest automaker in the third quarter of this year, selling more new vehicles than Ford for the first time in its history. It may even end the year having sold over 4 million vehicles and could overtake Ford for the entire 2024.
During the July-September period, BYD sold 1.13 million vehicles, representing a 38% increase from the same period last year and making it the most successful quarter ever for the brand. Ford sold approximately 40,000 fewer vehicles over the same period, slipping from the sixth-largest car manufacturer to seventh. Ford was holding on to a narrow lead for the January-September period, having delivered 3.3 million vehicles globally, slightly ahead of the 3.25 billion shipped by BYD.
BYD is not the only Chinese company giving traditional legacy automakers something to worry about. Sales at Geely jumped 14% through the third quarter after it delivered 820,000 vehicles. That placed it ahead of Nissan and behind Honda in ninth position. China’s third-largest car manufacturer, Chery, also rose to 12th in the ranking, reporting a 27% rise in sales to 550,000 units.
As Nikkei Asia reports, sales of many brands from Japan, Europe, and the US fell last quarter. For example, Toyota’s sales dropped 4% to 2.73 million, although it still holds a commanding lead over the VW Group which reported a 7% decline in sales to 2.17 million vehicles. Hyundai Motor Group retained its position in third, but its sales also fell, down 3% to 1.77 million units. Things were even worse at Stellantis as its sales plummeted by 20% to 1.14 million.
A surge in sales for brands like BYD is boosting their financials, too. During the third quarter, the carmaker posted revenues of 201 billion yuan, the equivalent of $27.6 billion, higher than Tesla at $25.2 billion.
Volkswagen and China’s SAIC have signed a deal extending their partnership to 2040.
The pair announced their recommitment to the joint venture 40 years after teaming up.
SAIC Volkswagen plans to introduce 18 EVs and PHEVs to the Chinese market by 2030.
These days almost every major automaker has a tie-up with a partner firm in China, but it was Volkswagen that blazed the trail, joining forces with domestic company SAIC four decades ago. And this week, on the 40th anniversary of that original deal, the pair have signed up to extend their joint venture to 2040.
Controversial Xinjiang Plant Sale
At the same time, VW announced the sale of its Urumqi car plant in Xinjiang province, a region that has been under intense scrutiny due to alleged human rights violations. Owned by the VW-SAIC joint venture, the duo finally agreed to sell their controversial Xinjiang plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), Reuters says.
The manufacturing plant gained notoriety because the region has been the location of human rights abuses of the Uyghur people, a predominantly Muslim ethnic group in Xinjiang, though VW’s own audit claimed to have found no evidence of forced labor at the plant. It’s worth noting that the factory, which opened in 2013, has lost its relevance in recent years, now employing just 200 people for final checks and deliveries. Once capable of producing 50,000 cars annually, it hasn’t turned out a single vehicle since 2019.
Extended Agreement and Future Plans
The current agreement between VW and SAIC doesn’t expire until 2030,but the automakers opted to extend it now due to the “multi-year planning cycles of new products,” and boy do they have a ton of those new products in the pipes.
SAIC Volkswagen is on target to introduce 18 new models, 15 of them specifically for the Chinese market. Six of the 18 are EVs, with two of those due to arrive in 2026 using the newly locally developed “Compact Main Platform” (CMP) and zonal electric architecture.
Chinese customers have switched on to EVs at a much faster rate than their counterparts in Europe and North America, but that doesn’t mean SAIC Volkswagen is going to ignore combustion tech. Arriving in 2026, the same year as the two EVs, are three plug-in hybrid models and two range-extender EVs.
“China is a driver of innovation for autonomous driving and electric mobility,” said Ralf Brandstätter, VW’s top man in the country. “With the new agreement, we are intensifying our integration into the Chinese ecosystem and consistently leveraging local innovation strength. This also creates a strategic competitive advantage for the Volkswagen Group worldwide.”
Sales Struggles in China
VW, like many western Automakers, has been struggling recently with falling sales in China. Having previously lapped up offerings from brands like VW, Porsche, BMW and Mercedes, Chinese buyers are increasingly choosing cars from rapidly improving domestic brands selling cars at prices European companies struggle to match. Before the pandemic German brands accounted for 25 percent of cars sold in China, but now they make up only 15 percent, Bloomberg reported last month.
Cupra has begun preliminary talks with the Penske dealer group about launching in America.
The sporty VW-owned brand wants to be on sale in key US states before the end of the decade.
Cupra is expected to offer ICE, PHEV, and fully electric powertrains in next-generation SUVs and crossovers.
Cupra’s dream of launching in the US just came a little closer with the news that the VW-owned Spanish brand has opened first-stage talks with the Penske dealer group.
Though no concrete deal has been announced, the fact that Cupra is even talking about the two companies getting around a table indicates discussions are probably more advanced than it’s letting on. No detailed timeframe was given for Cupra’s US debut but the automaker reiterated its previous stance, saying it was targeting an American debut by the end of the decade.
But that debut will see the brand appear “in key states aligned with the brand,” rather than nationwide. Penske Automotive already has a solid relationship with the Volkswagen Group so it makes for an obvious choice to help Cupra get a foothold in a market where 99 percent of drivers have never heard of it.
“Cupra’s ambition is to be a truly global brand and expanding into the United States represents one of the greatest milestones on our journey,” said the automaker’s CEO, Wayne Griffiths. “We have great respect for the U.S. market, recognizing that a strong distribution and retail strategy is essential for success.”
Cupra is expected to bring combustion, plug-in hybrid, and fully electric models to North America, though the cars themselves will be a generation on from the vehicles currently sold in European and Australian dealerships.
In March of this year, Griffiths confirmed that Cupra would kick off its American adventure with an electric version of the next Formentor crossover and also a bigger electric crossover SUV, that second model slated for production at VW facilities “in the North American region, including Mexico.”
There was no mention of non-EV powertrains back then, but it’s no surprise that Cupra is now talking about models with ICE elements given the American public’s disinterest in pure battery cars so far. Building an SUV in Mexico also looks potentially problematic now that Donald Trump – who has vowed to apply high tariffs on Mexico-built cars – won the election.
Australian car buyers are increasingly turning their back on EVs, new data from the Australian Automobile Association reveals.
Sales of electric vehicles fell 25 percent from Q2 to Q3, but sales of hybrids grew 3.3 percent and PHEVs by a massive 56 percent.
The end of rebates for EV buyers is being blamed for the slump, while hybrids still receive financial aid.
Australia has joined the growing band of countries whose car buyers are finding themselves turned off to the idea of splashing out on an EV. Sales of electric cars in the country dropped by 25 percent in the three months to October, new data from the Australian Automobile Association reveals.
EV registrations fell from from 25,353 in Q2 to 18,990 units in Q3, taking battery vehicles’ share of the car market down from 8.1 percent to just 6.6 percent, the lowest it’s been in two years. The overall car market was down by a far less dramatic 7.6 percent in the same period.
Those EV refuseniks aren’t all jumping back into plain-old combustion cars – petrol sales didn’t fall as badly as EV registrations, but were still down 9.2 percent. Instead, they’re increasingly switching their focus from full electric to partially-electric. Sales of hybrids improved by 3.3 percent in Q3 from 46,727 to 48,282 units, but sales of plug-in-hybrids grew by a shocking 56 percent.
Modern PHEVs now offer such long electric ranges that many buyers find they can cover all of their commuting on battery power, and still have the security of a gas tank and combustion engine. But analysts think the main reason for the switch from EVs to hybrids is a financial one.
Rebates for fully electric cars have been removed everywhere in the country except Western Australia, creating a disincentive for buyers. But PHEVs are still exempt from fringe benefits tax until April 2025, potentially saving drivers thousands of dollars on a lease, the AAA explains.
“There have been significant quarterly fluctuations over the past seven quarters, but sales figures over that period confirm a clear trend of growth for hybrids, while battery electric vehicle market share appears to have peaked for now,” the AAA said.
“In the first half of 2023, battery electric vehicles outsold hybrids, but since then hybrids have outsold battery electric vehicles in five consecutive quarters.”
Source: Australian Automobile Association Images: Brad Anderson for Carscoops
EV and hybrid sales are rising in the state, while plug-in hybrid registrations show little movement this year.
California is projected to register 1.75 million light vehicles in 2023, slightly down from last year’s total.
Nearly 40% of new cars sold in California are electrified, reflecting growing interest in alternative powertrains statewide.
California has long been a hotbed for electric vehicles in the USA, and through the first nine months of this year, EVs accounted for 22.2% of all new vehicle sales across the state, according to the California New Car Dealers Association (CNCDA). While this represents only a modest increase from the EV share reported over the same period last year, it’s significantly more than the 9.1% share they had in 2021.
Between January and September, 1,320,708 new light vehicles (across all powertrains) were registered across the Golden State. This marks a 1.7% decline from the same period in 2021, with 362,881 cars (down 13.1%) and 957,827 light trucks (up 3.4%). By the end of the year, 1.75 million new vehicles are expected to be registered in California—a slight drop from the 1.77 million delivered last year and a considerable decline from pre-COVID years, when annual sales between 2015 and 2019 consistently hit or exceeded 1.89 million units.
What’s particularly interesting is the proportion of recent sales that have been for BEVs and hybrids. Sales of BEVs have jumped to 293,109 units, or a 22.2% share of the market year-to-date, slightly higher than the 21.5% share they had through all of 2023. The proportion of traditional hybrid vehicles sold this year has also risen, with 182,469 being registered to new homes. Hybrids now accounted for 13.8% of the total market.
In contrast, plug-in hybrid sales are lagging behind BEVs and standard hybrids. Only 45,244 units were sold in the first nine months of the year, holding steady at a 3.4% market share—the same as their share through all of 2023.
Gasoline-powered vehicles remain by far the most popular powertrain choice in California. Of all the new light vehicles sold in the state this year, 58.3% have gas engines. BEVs are the next most popular at 22.2%, followed by hybrids at 13.8%, plug-in hybrids at 3.4%, and diesel-powered ICE models at 2.3%. Altogether, the combined market share of BEVs, hybrids, PHEVs, and fuel cell vehicles has reached 39.4%.
The best selling EVs
When it comes to BEV dominance, Tesla remains the undisputed heavyweight champion in California. According to CNCDA data, the Tesla Model Y towers over the competition with a staggering 105,693 new registrations from January to September this year, making it the state’s best-selling BEV by a margin that’s almost embarrassing for its rivals. Its smaller sibling, the Tesla Model 3, comes in second with 34,219 units, while the Hyundai Ioniq 5—an up-and-comer in the EV space—takes a distant third with just 11,711 units sold. If the Model Y was a politician, it’d be running unopposed.
However, Tesla’s overall performance in California tells a more nuanced story. The company’s EV market share in the state has slipped by 8.5% compared to last year, marking a full 12 months of incremental declines, according to CNCDA. And while Tesla may still own the lion’s share of the BEV segment, the competition is sharpening its claws. Brands like Kia, BMW, and Hyundai are quietly but consistently chipping away, each posting year-to-date EV market share gains of 1.4%, 1.3%, and 1.3%, respectively.
Toyota the overall leader, Tesla second
Looking beyond BEVs to the broader automotive landscape in California, Toyota comfortably claims the top spot across all powertrains with 215,402 registrations so far this year, holding a commanding 16.3% market share. Tesla settles for second place with a 12.1% share, while Honda rounds out the top three, capturing 10.9% of the market.
Mazda has confirmed plans for a next-gen CX-5 and it will use an all-new hybrid powertrain that was developed in-house.
The redesigned crossover will have a streamlined lineup as the automaker is seeking to reduce costs and complexity.
A new four-cylinder Skyactiv-Z engine is scheduled for launch in 2027, promising improved efficiency.
Next week will mark eight years since Mazda introduced the second-generation CX-5 at the 2016 Los Angeles Auto Show. That’s a long time, but the crossover remains incredibly popular and is the brand’s best-selling vehicle in the United States. While the CX-50 is often seen as the CX-5’s successor, that’s not the case. Quite the opposite as Mazda has revealed an assortment of details about the next-generation model.
The redesigned crossover will play a central role in Mazda’s Phase 2 plan, which will see the automaker transition to electrification between 2025 and 2027. As part of this effort, the CX-5 will offer a new hybrid powertrain that was developed in-house. This stands in contrast to the CX-50 Hybrid, which raided the Toyota parts bin.
Besides packing hybrid power, the next-generation CX-5 will be approximately 60% less complex than today’s model. In order to achieve this, Mazda will streamline specifications as well as equipment. This means we can expect a smaller and less complicated lineup. That makes a lot of sense as Mazda currently offers eight different trims in the United States.
In 2027, Mazda will introduce a new electric vehicle based on a dedicated platform. The automaker is also studying plug-in hybrid variants based on the architecture and suggested these would be relatively cheap to develop. This could make them an appealing hedge against lackluster EV adoption.
Speaking of EVs, the company reiterated plans for an electric crossover from Changan Mazda. It was previewed by the Arata concept, which was introduced at the Beijing Auto Show earlier this year.
While much of the focus was on electrification, Mazda confirmed the development of a new Skyactiv-Z engine that is slated to be launched in 2027. The automaker didn’t say much about it, but the engine promises “more ideal combustion” as well as enhanced “environmental and driving performance.”
The Skyactiv-Z will be a four-cylinder successor to the Skyactiv-G and Skyactiv-X engines of today. It will use the “lambda one combustion method,” which promises to achieve a “high thermal efficiency by realizing super lean burn combustion over a wide range from low to high rpm.”
Mazda also reiterated its intent to simplify its internal combustion engine lineup, aiming to “consolidate and streamline overall engine complexity.” Despite this move toward simplification, they’re committed to rotary engines and are making “smooth progress” in regards to their emission compliance.
While Mazda’s engine lineup will shrink in the coming years, they’ll eventually apply the new combustion technology to their inline-six. This promises to improve its “environmental performance,” which should help the engine comply with future emission standards.
Further out, Mazda’s Phase 3 plan will occur between 2028 and 2030. Less is known about this time period, but the company is promising a “full-scale launch” of electric vehicles.
Bentley to launch its first EV in 2026, describing it as smaller than the Bentayga and the “first true Luxury Urban SUV.”
The luxury brand also promised a new BEV or PHEV every year until 2035, when it will go EV-only – five years later than previously predicted.
Bentley’s revised Beyond100+ strategy is an update of the earlier Beyond100 plan, modified to take account of the slowdown in EV market.
Bentley will reveal its first-ever EV in 2026, the firm revealed today as it announced the Beyond100+ electrification strategy that will take it to 2035 and beyond.
The British luxury brand, which currently only sells V6 and V8 vehicles following the death of the W12 engine this summer, described its maiden fully-electric model as the “first true Luxury Urban SUV,” claiming it will create an entirely new segment in the car market. But it also pushed back its plan to go electric-only from 2030 to 2035.
An accompanying silhouetted image of the EV shows the profile view of an SUV that looks broadly similar to today’s Bentayga but with a lower rear roofline, curvier fender shoulders, and a more pronounced flick at the base of the D-pillar. CEO Frank-Steffen Walliser told us at a press briefing the new car would be less than 5 m (197 inches) long, making it considerably smaller than the Bentayga, which measures 5.1 m (202 inches) in standard form and 5.3 m (210 inches) in stretched EWB guise.
Walliser claimed the EV would be more modern than its sister SUV and was targeting a new type of customer that might not have considered a Bentley before. He conceded that “to be honest, there’s not a lot of demand” for electric power from the brand’s traditional buyers but said there were plenty of other potential customers out there who would find the EV appealing. Walliser also described the current EV market slump as “a dip” and suggested interest in electric cars would bounce back.
Bentley didn’t give any further concrete details about the EV but did say its range would be “surprising” and suggested it had come up with a new way to generate a soundtrack that wasn’t synthetic, and was a technique no one else in the car industry was currently using. And it asserted that it would never offer electric and combustion versions of the same model.
Walliser also announced that we’d see a new BEV or PHEV every year between 2026 and 2035 when the firm will switch to making only fully-electric cars and SUVs. The automaker had previously committed to going EV-only in 2030 when it announced its original Beyond100 electrification plan in 2020. However, the new Beyond100+ program has been adapted to take account of the slowdown in the growth of the EV market.
“Everybody knows that the market looks different than was projected in 2019 – this is not Bentley-specific, it’s valid for the whole car industry” Walliser said. “So we had a look at the strategy, we kept with the plan to bring the first BEV in 2026 and have it in the market in 2027, but we also [changed] what we would do in the future with plug-in hybrids and ICE.”
High-end automakers have been hit particularly hard by the shift in demand for EVs. Bentley’s sister brand Porsche, where Walliser worked for two decades, has struggled to shift once-popular models like the Taycan, and recently revealed that it would be adapting future EVs currently in development to take hybrid power in response to market changes.
Bentley’s focus will also be on hybrid powertrains like the electrically-assisted V8 now fitted to the Flying Spur and Continental. But it also promised it would still launch new variants and “special models” with pure ICE engines, starting with a version of the Bentayga we’ll see next year.
The automaker’s first EV and other electrified models will all be developed at the Bentley’s historic Crewe base in the northwest of England, which is being overhauled with a new design center, paint shop, and BEV assembly line. But as with Bentley’s existing models, we can expect future cars and SUVs, including the new EV, to share platforms and components with other VW Group products.
Mazda has already sold 313,452 vehicles through the first nine months of 2024, a 15% increase compared to last year’s figures.
While the company had previously projected to sell 500,000 models in 2025, it has now lowered its expectations.
Mazda remains on track to break the 400,000 sales milestone in the U.S. this year—a first for the brand—and is optimistic that this upward trend will carry into 2025. That said, the company has dialed back its expectations, acknowledging that sales might not climb as high as it once projected.
Last year, Mazda’s US sales surged 23 percent, hitting 363,354 units. Through September this year, it has already delivered 313,452 vehicles, 15 percent more than during the first nine months of 2023. Contributing to this rise in sales has been the launch of the related CX-70 and CX-90 SUV. Mazda has also increased production of the CX-50 it builds at its joint venture plant with Toyota in Alabama.
Mazda North America’s CEO, Tom Donnelly, is bullish about hitting 450,000 U.S. sales next year. However, the brand has pulled back from an earlier, more ambitious forecast of 500,000 units, citing a “no shortage of headwinds” facing the industry. “The once in 100-year-plus transformation the industry is going through – all of us are dealing with that,” Donnelly told Auto News. “The core business is still going to be solid.”
Making Mazda’s sales growth particularly impressive is the fact that it doesn’t have a single EV in its line-up, having canceled the poorly-received MX-30 last year. The Japanese company has taken a more measured approach to electrification, and that’s helping it, particularly thanks to shifting consumer interest in hybrid vehicles.
The carmaker has been steadily expanding its lineup of hybrid and plug-in hybrid models since last year, with the CX-70 and CX-90 leading the charge as PHEVs. Next month, it’ll start deliveries of the CX-50 hybrid and expects it to account for roughly 40 percent of all CX-50 sales.
“We’re pleased with the impact our multisolution approach is having on our business,” Donnelly said. “On top of the growth that we’re already experiencing this year, we’re excited about the impact that the CX-50 hybrid will have for us.”
The CX-50 hybrid borrows its powertrain from Toyota. It consists of a 2.5-liter four-cylinder with three electric motors, an electronically-controlled CVT, and a small battery pack. It produces 219 hp and 163 lb-ft (221 Nm) of torque.
Mercedes had a disappointing third quarter as their car division saw a slight decrease in sales.
Electric vehicle deliveries were down 31% compared to a year ago.
Group revenue fell 6.7% in Q3, while earnings per share dropped 47.5%.
Mercedes has long been a huge proponent of electric vehicles, and their lineup proves it. The company’s offerings include the EQA, EQB, EQE, EQE SUV, EQS, EQS SUV, and more recently, even an electric G-Class. Depending on the market, you can also find the EQT and EQV rounding out the electric range. It’s an impressive array of EVs—but the numbers suggest Mercedes may have overplayed its hand.
That’s a ton of electric vehicles and they’re coming back to haunt the luxury brand as third quarter sales of EVs plummeted 31 percent from a year ago. Customers only snapped up 42,544 units in Q3, which was a drop of 19,077.
Unfortunately for Mercedes, the year-to-date picture isn’t much better as electric vehicle sales are off 22.1%. Through the first nine months of the year, the brand has only sold 135,908 EVs and that’s down from 174,471 units this time last year.
And it’s not just the EVs that are struggling. Mercedes-Benz Cars’ overall sales also slipped, dropping 1.4% to 503,573 units. While that might seem like a modest decrease, plug-in hybrids sales fell 14.7%, totaling just 87,232 units—a worrisome trend for a brand heavily invested in electrification.
Mercedes-Benz GroupQ3 Results
Mercedes-Benz Group
Q3-24
Q3-23
Diff.
YTD-24
YTD-23
Diff.
Revenue*
34,528
37,001
-6.7%
107,144
112,414
-4.7%
Earnings before interest and taxes (EBIT)*
2,517
4,842
-48.0%
10,417
15,334
-32.1%
Net profit/loss*
1,719
3,719
-53.8%
7,806
11,371
-31.4%
Free Cash Flow industrial business (FCF)*
2,394
2,347
+2.0%
6,256
7,874
-20.5%
Earnings per share (EPS)
€1.81
€3.44
-47.5%
€7.62
€10.47
-27.2%
*in millions of €
SWIPE
Mercedes-Benz Vans also underperformed, so it’s not surprising that third quarter Group revenues fell 6.7%. That doesn’t sound too bad, but the big news is that earnings before interest and taxes dropped 48%, while earnings per share fell 47.5% to €1.81 ($1.96).
The latter two figures paint a bad picture, but Mercedes tried to put a positive spin on things by claiming “solid sales … despite product transitions, a challenging market environment and fierce competition, particularly in China.” However, CFO Harald Wilhelm was more direct as he said “The Q3 results do not meet our ambitions.” The financial guru added, Mercedes is “taking a prudent view about market evolution going forward and … will step up all efforts on further efficiency increases and cost improvements across the business.”
For the year, Mercedes-Benz Cars expects sales to be “slightly below” 2023 levels. As such, they’re expecting the fourth quarter to be a repeat of Q3, although it could be aided by better availability of high-end models including the SL- and G-Class as well as the AMG GT and AMG E-Class.
Mercedes-Benz Cars Q3 Results
Mercedes-Benz Cars
Q3 2024
Q3 2023
Change
Q1-Q3 24
Q1-Q3 23
Change
Sales in units
503,573
510,564
-1.4%
1,463,263
1,529,793
-4.3%
– thereof xEV
87,232
102,292
-14.7%
267,372
289,900
-7.8%
– thereof BEV
42,544
61,621
-31.0%
135,908
174,471
-22,1%
Share of xEV in unit sales in %
17.3
20.0
–
18.3
19.0
–
Revenue*
25,602
27,131
-5.6%
78,485
83,187
-5.7%
Earnings before interest and taxes (EBIT)*
1,198
3,312
-63.8%
6,410
11,312
-43.3%
Adjusted earnings before interest and taxes (EBIT)*
China’s CATL has launched a new battery, offering plug-in hybrids an electric-only range rivaling some EVs.
Their Freevoy Super Hybrid Battery promises to provide more than 249 miles of range, surpassing the Fiat 500e and Mini Countryman SE.
Hybrids from Chery, GAC and Geely are expected to feature CATL’s new battery starting next year.
Plug-in hybrids are often billed as a stepping stone to electric vehicles as they usually offer a modest electric-only range of around 30 to 40 miles. That’s enough to cover short commutes, but not much else. Beyond that, they rely on traditional engines, leaving much to be desired for those seeking true electric freedom.
However, it’s time to rethink plug-in hybrids as CATL has unveiled their new Freevoy Super Hybrid Battery, which promises to give PHEVs a range in excess of 249 miles (400 km). That’s presumably an optimistic CLTC figure, but that range matches the EPA estimate of the Audi e-tron GT and bests some versions of the Audi Q4 e-tron and BMW i4. It also trounces EPA figures for the Fiat 500e as well as variants of the Ford Mustang Mach-E and F-150 Lightning.
Besides providing a significant increase in range, CATL says the battery supports 4C superfast charging. This means a quick 10 minute stop could deliver over 174 miles (280 km) of range, “dispelling range anxiety for EREV and PHEV owners.”
The magic behind Freevoy lies in advanced materials and cutting-edge chemistry. According to CATL, the battery’s design incorporates “surface modification technology for the cathode material, coupled with an innovative high-voltage electrolyte formulation, to create a nano protective layer. This effectively minimizes side reactions within the active layer.”
As CATL explains it, the inclusion of “high-activity, excited-state particles into the cathode material significantly enhances transport efficiency of lithium ions within the material. Supported by the SOC full-scene high-precision model developed by CATL, and the upgrade of BMS intelligent algorithm and hardware, the SOC control accuracy of Freevoy has been increased by 40%, and the overall pure electric utilization rate has increased by more than 10%, achieving a pure electric range of more than 249 miles (400 km).”
The company went on to say the Freevoy incorporates their sodium-ion battery technology as well as a multi-gradient layered electrode design. Of course, what really matters is the jaw-dropping range and CATL effectively said each improvement helped to add a few miles, combining to create a huge jump over traditional PHEV batteries.
Looking ahead, 30 hybrid models are set to roll out next year equipped with the Freevoy battery. Among the first to adopt it will be brands like Chery, GAC, Geely, and VOYAH, setting the stage for a new era of hybrids that might actually make going fully electric seem, well, not so urgent after all.
A record 1.7 million electrified cars were sold globally in September as deliveries jumped 30.5%.
China fueled the boom, its demand for BEVs and PHEVs climbing 47.9 percent, Reuters reports.
North American deliveries are up 10 percent Jan-Sep, but only rose by 0.4 percent last month.
China’s unrelenting enthusiasm for electrified vehicles turned September into a record-smashing month for global sales, even as some markets wallow in the usual doom and gloom.
Worldwide deliveries of battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) surged 30.5 percent, bringing the total to 1.7 million units. A staggering 1.1 million of them were snapped up by buyers in China, where sales jumped 47.9 percent, according to Rho Motion data reported by Reuters. September was the second consecutive month in which China’s electrified sales hit seven figures.
Sales were less spectacular in other parts of the world, but they were at least heading in the right direction – or the wrong direction if you’re a diehard combustion lover. North American sales were up 4.3 percent to 0.15 million, and in Europe they increased 4.2 percent to 0.3 million, spurred on in large part thanks to a 24 percent uplift in the UK and smaller gains in Italy and Germany.
China’s two consecutive bumper months have helped push global electrified sales for the first nine months of the year to 11.5 million, up 22 percent on the same period in 2022. Breaking those numbers down into regions reveals that China sales exploded by 35 percent to 7.2 million in January to September and the US and Canada increased its electrified take-up by 10 percent to 1.3 million.
The ‘rest of the world’ (anywhere that isn’t North America, Europe or China) moved 25 percent more units, shifting 0.9 million BEVs and PHEVs. But Europe, the next biggest region by volume for electrified cars after China, dropped 4 percent to 2.2 million.
“This record-breaking month of EV sales brings new hope to the industry,” claimed Rho Motion’s data manager, Charles Lester. “While the electrification of transport seems inevitable, the recent slowdown of sales in many parts of the world has sewn seeds of doubt which can now start to be swept aside.”
PHEVs accounted for only 1.9% of new vehicle sales in the U.S. through the first eight months of 2023.
Many buyers feel that plug-in hybrids don’t offer enough value compared to traditional hybrids or full EVs.
The need to manage both fueling and charging makes plug-in hybrids less appealing to potential buyers.
Consumers haven’t exactly embraced plug-in hybrids (PHEV) the way some automakers might have hoped, with many seeing them as a compromised stopgap—a halfway house that combines the worst of both worlds. They’re pricier than traditional hybrids and don’t quite match the ownership experience of a full electric vehicle, leaving many buyers wondering what exactly they’re paying for.
In the US, PHEVs accounted for a paltry 1.9% of total new vehicle sales through August. To put that into perspective, EVs had a 9.4% share of the total market, while conventional hybrids managed a respectable 10.7%. And it’s not for lack of options—there are currently 41 different PHEVs available in the U.S., a smattering more than the 39 conventional hybrids on sale and just a little shy of the 60 EVs offered.
So, what’s holding PHEVs back? Well, several reasons provide insight into why PHEVs are not thriving. First and foremost is the cost. A new study from J.D. Power reveals the average customer-facing transaction price (CFTP) from January to August for a PHEV in the compact SUV segment was $48,700. That’s significantly more expensive than the average CTFP of $36,900 for a compact electric SUV and the average CFTP of $37,700 for a comparable hybrid. Paying more for something that feels like a compromise isn’t exactly a winning value proposition.
Low Satisfaction, High Costs
Then there’s customer satisfaction—or lack thereof. The latest J.D. Power U.S. Electric Vehicle Experience Ownership Study paints a bleak picture, with overall satisfaction for PHEVs landing at just 669 points on a 1,000-point scale. For comparison, mass-market EVs scored a more commendable 716, while premium EVs climbed higher still at 738.
Part of the dissatisfaction stems from unexpected costs. Many PHEV owners are finding that their vehicles come with higher-than-anticipated ownership expenses, and the dual demands of fueling and charging two power sources are proving more of a hassle than anticipated. Many consumers also don’t feel they are getting enough for their money when buying a plug-in hybrid, particularly since they often don’t look any different than non-hybridized versions of the same model.
“There’s been a lot of focus on creating intermediary steps for consumers who may not be ready to fully adopt a battery-electric vehicle yet,” J.D. Power’s EV practice executive director Brent Gruber told Auto News. “Plug-in hybrids have their merits for certain people, but when you look at that ownership experience, it’s certainly not as positive as battery-electric vehicle ownership experiences.”
The Future of PHEVs
Ultimately, plug-in hybrids face an uphill battle convincing buyers they’re worth higher price tag and complexity. Factor in the sky-high cost of battery replacements post-warranty—something we’ve highlighted before—and the steep depreciation they often suffer, and it’s easy to see why many consumers might be inclined to stick with more traditional options instead.
Nissan has reportedly confirmed plans to offer a Rogue PHEV in the United States.
It will reportedly arrive next year as a 2026 model and borrow heavily from the Mitsubishi Outlander PHEV.
The company’s range-extended e-Power technology is also slated to come to America in 2026.
With the electric revolution running out of juice, a number of automakers have pivoted back to hybrids. That appears to include EV pioneer Nissan, which has reportedly confirmed plans for a Rogue plug-in hybrid.
According to Car & Driver, the eco-friendly crossover will arrive next year and become the brand’s first PHEV in America. Details are limited, but the model is expected to borrow heavily from the Mitsubishi Outlander PHEV. In its current iteration, the North American Outlander pairs a 2.4-liter four-cylinder engine with two electric motors, delivering a combined output of 248 horsepower.
However, that particular crossover was recently updated overseas, and Mitsubishi has confirmed that the model will be “refreshed in markets including North America, Australia, and New Zealand in due course.” If the Rogue PHEV benefits from those changes, we can likely expect a similar 2.4-liter gasoline engine, two electric motors, and a 22.7 kWh lithium-ion battery pack. This setup gives the latest Outlander PHEV an electric-only WLTP range of up to 53 miles (86 km).
If the model doesn’t receive the larger battery—at least at launch—we could see a smaller 20 kWh unit, which would likely deliver an EPA-rated electric-only range of around 38 miles (61 km). As for performance, the crossover is expected to have a combined output of 248 horsepower (185 kW / 251 PS) and 332 lb-ft (450 Nm) of torque.
The Rogue PHEV will reportedly be followed by e-Power models arriving in 2026. While there’s no confirmation yet on which US.-spec vehicles will receive the e-Power option, these models are essentially range-extended EVs. Unlike traditional hybrids, the wheels are powered exclusively by electric motors, with a gasoline engine onboard serving as a generator to recharge the battery. This setup offers a different approach to electrification, providing the benefits of electric driving without the range anxiety typically associated with fully electric vehicles.
Tesla’s Cybercab is a driverless EV designed to revolutionize urban mobility with full autonomy and affordable mass production.
The VW XL1 was an ultra-limited, fuel-efficient project that pushed the limits of hybrid technology and lightweight materials.
Both models focus on aerodynamic efficiency, using futuristic design elements to improve overall performance.
When Tesla unveiled its futuristic Cybercab, many sharp-eyed observers were quick to spot an unexpected resemblance to an obscure eco-marvel from the past—the VW XL1. While Tesla’s latest creation wants to revolutionize urban mobility with full autonomy and mass-market ambitions, the XL1 was a hyper-efficient, ultra-limited experiment in fuel-saving technology. Despite their vastly different missions, the visual similarities between the two are hard to overlook.
Tesla’s Cybercab—or robotaxi, as it’s often called—is a fully electric, fully self-driving vehicle. Elon Musk has set his sights on starting production by 2027, with a projected price tag of $30,000. What sets the Cybercab apart is that it completely eliminates the steering wheel and pedals altogether, depending entirely on AI and a web of sensors to shuttle passengers to their destinations without human intervention.
Meanwhile, the VW XL1, a true unicorn in the automotive world, had a production run of just 250 units, all reserved for European buyers, with an eye-watering price tag of €111,000 (around $121,500 today). First introduced as a concept in 2002 that was refined in 2009 and 2011, the XL1 finally hit the market in 2013. Its headline feature? A mind-bending fuel consumption of just 0.9 liters per 100 km, or about 260 mpg. VW achieved this through a 0.8-liter, two-cylinder, plug-in diesel hybrid powertrain producing 68 hp, combined with cutting-edge lightweight materials and wind-cheating aerodynamics.
So, how did two seemingly unrelated vehicles—one an affordable robotaxi, the other an ultra-expensive eco-cruiser—end up looking like long-lost cousins? The most obvious explanation is their shared goal of aerodynamic efficiency, along with a desire to create something futuristic and desirable. Let’s break down the five key similarities that tie the Tesla Cybercab and VW XL1 together.
Silhouette
We start with the most obvious similarity, which is the overall shape. This is largely dictated by aerodynamics, as the droplet is the natural form with the least drag. The short nose and sloping roofline are common features among several concepts and production vehicles, but the effect is accentuated by the similar greenhouse design.
However, the XL1 pushes aerodynamics even further with its extended tail and rear wheel covers, designed to slice through the air with minimal resistance. In contrast, the Cybercab opts for larger disc wheels and a rising beltline that gives it a more approachable, less aggressive look.
Butterfly Doors
Another key feature of the Tesla Cybercab and the VW XL1 is their butterfly doors, contributing to their futuristic stance. Besides the cool factor, the design makes it easier for occupants to enter and exit the cabin, especially in low-slung vehicles. This is why you usually come across unconventional door mechanisms on supercars and hypercars rather than SUVs, with the notable exception of the Tesla Model X.
The XL1 takes this one step further by incorporating portions of the roof into the door design, necessary given the car’s ultra-low height of just 1,153 mm (45.4 inches). While Tesla hasn’t released detailed specs on the Cybercab’s height, prototypes appear significantly taller than the XL1, making this door style more about form than function.
No Rear Windscreen
Lighting Units
The omission of a rear windscreen is not as uncommon in 2024 as it was in 2013, but it’s another shared trait between the Tesla and the VW, contributing to the monolithic appearance of the rear deck. In the XL1, the lack of rear glass likely served weight and aerodynamic goals. For the Cybercab, fully autonomous driving eliminates the need for rear visibility altogether.
Interestingly, other new models, like the Avatr 12 and the Polestar 4, have also ditched the rear windscreen, marking a trend in modern automotive design that favors tech-driven solutions over traditional visibility.
This one might be a bit of a stretch, but both the Cybercab and XL1 boast full-width light bars on both ends that give them an undeniably sci-fi aesthetic, especially at night. While each model has its own distinct lighting signature, the Cybercab seems to take inspiration from Tesla’s notorious Cybertruck, blending angular, futuristic elements with clean, continuous light strips at both the front and rear.
Two-Seater Cabin
Finally, both models have a two-seater interior layout, despite not being geared towards high-performance driving. The Tesla Cybercab has the unique trait of omitting the driving controls (no steering wheel or pedals), while the VW XL1 features a notable offset between the seats, making the maximum use of its narrow cabin.
A clear advantage the Cybercab has over the tiny XL1 is cargo space. Thanks to its fully electric powertrain, Tesla had more room to play with packaging, giving the Cybercab a larger trunk. The XL1, on the other hand, had to make do with a rear-mounted 0.8-liter turbodiesel engine as part of its hybrid setup, limiting practicality.
And that concludes our list with the similarities between the fully electric robotaxi (Tesla Cybercab) and the highly efficient automotive oddity (VW XL1). Do you think that Tesla designers intentionally copied (or at least were influenced by) the Volkswagen, or are these features simply the byproduct of engineering for maximum efficiency and usability?
Lamborghini says its hybrid models can sustain the brand for the next decade.
The first electric Lamborghini will take the form of a 2+2, launching in 2028.
The Italian car manufacturer has not said when it could launch an all-electric supercar.
While many expect the car industry to ultimately transition almost entirely to electric vehicles, slowdowns in the take-up of new EVs do mean ICEs will continue to be offered for longer than many had expected. That’s great news for car enthusiasts, particularly if you’re a fan of the Lamborghini brand.
Following the launch of the Reveuelto, Temerario, and Urus SE, Lamborghini now offers three hybrids, which all retain big-capacity and hugely powerful combustion engines. These kinds of engines have become synonymous with Lamborghini and during a recent interview, the automaker’s technical officer, Rouven Mohr, confirmed they aren’t going anywhere soon, noting now is not the right time for an electric supercar.
“At the moment, now, the time would not be right [for an EV], at least not in a super sports car,” he told Motor1. “You have seen a lot of [electric] cars on the market that were not really successful.” Mohr added he’s happy with Lamborghini’s current line-up, but admitted it will, eventually, go down the EV route in the future.
“I’m super happy with our current lineup, because with a hybridized lineup, we can live for the next decade,” he said. “But I also believe Lamborghini needs to have the transition [to electric power], because it’s only a question of time when the mindset will change.”
Lamborghini’s first EV will be inspired by the Lanzador Concept and is scheduled to arrive in 2028. Limited details are known about this new 2+2 at this early stage, but Mohr says the carmaker is working hard to ensure it offers the same excitement factor customers have come to expect from the brand’s models.
“You can be sure when we bring the first electric Lamborghini, we will be very careful in managing the brand’s attributes,” he noted. “We are not thinking to bring another standard electric car, one megawatt of power. It’s not like this. You need a differentiation.”
There are many benefits to entering the world of EV ownership. If you’re in the market for a new vehicle and are considering switching from gas-powered to electric, you’re probably wondering about the cost differences and how they’ll affect you long term. If you’re ready to shop the different used cars for sale, we have plenty of electric cars for sale in Madison, WI, at our dealership: cars that will save you money long-term.
The Tax Benefits
Unlike gas-powered vehicles, electric vehicles qualify owners for a significant tax credit. Most popular electric vehicle models qualify for this incentive, and the total tax credit ultimately depends on the vehicle’s battery size. Drivers who choose hybrid models will receive a lower tax credit than those who choose fully electric vehicles, in which case you can expect several thousand dollars in federal incentives.
Fuel Savings
Buying an electric vehicle means you’ll no longer have to plan regular trips to the gas station, search for the cheapest or least crowded station, and fight over pumps when the prices rise or there’s yet another gas shortage. You’ll save thousands of dollars yearly in fuel costs because you won’t have to rely on gas to power your vehicle.
Plus, you can take advantage of the many free public charging stations at restaurants, universities, gas stations, and other locations all over the country. Whether driving around your local area or heading out on a road trip, you can search for free charging stations online with an interactive map that will give you links to locations throughout the country.
You’ll Save Money on Vehicle Maintenance
Because electric vehicles require fewer parts than traditional vehicles, the maintenance costs are far cheaper than gas-powered vehicles. Drivers who choose electric vehicles may spend 40% less on maintenance costs than those who own gas-powered vehicles.
Shopping for Used Cars for Sale? Consider an EV
If you’re in the market for a pre-owned vehicle, you can’t go wrong with an electric option. In the long run, you’ll benefit from tax incentives, save money on fuel and maintenance, and help the environment.
At Zimbrick Automotive, we have electric vehicles that can meet the needs of drivers with all different lifestyles and budgets. Whether you’re looking for an economical or luxury vehicle, we have plenty of options. The most popular automotive brands, like BMW, Porsche, Audi, GMC, Chevrolet, Mercedes-Benz, and more, have designed some incredible electric options, and we carry them here at our dealership.
If you want to enter the electric vehicle world, our expert team can help you choose the right option at the right price. Visit us today at Zimbrick Automotive to browse our new and pre-owned electric vehicle inventory, learn more about the advantages of driving an EV, and test drive your favorite model.