The race to make electric cars affordable has produced plenty of overcomplicated ideas, but Dacia’s Hipster concept goes the opposite way. Think Citroen 2CV and Fiat Panda in its simplicity. It’s unapologetically basic, designed to get people moving without the frills or inflated promises that often come with an EV badge.

More: Dacia’s New 4×4 Hybrid Wants To Kill Fuel Bills And Range Anxiety In One Shot

Now, the Hipster is officially still just a concept, but its production intent is clear. It’s expected to undercut Dacia’s most affordable electric model, the Spring, which starts at just under €17,000 euros (around $18,400) in Germany and roughly £15,000 (about $18,900) in the UK.

According to Dacia, the average price of new vehicles in Europe climbed by an eye-watering 77 percent between 2010 and 2024, far outpacing household income. With the Hipster, the brand aims to bring electric mobility to a broader audience, pushing beyond what the already budget-friendly Spring offers.

Compact By Design

The Hipster measures 3 meters (118.1 inches) in length, 1.55 meters (61 inches) in width, and 1.54 meters (60.6 inches) in height, making it even smaller than a kei car. Only a few micro-sized quadricycles like the Citroen Ami manage to come in beneath it on the size chart.

Dacia describes the Hipster’s shape as “a block sitting firmly on four wheels at the four corners.” It looks like a scaled-down mix between a Jeep and a Land Rover Defender, with a stubby front, upright nose, and flat window surfaces that give it a utilitarian charm. There are virtually no overhangs, and the proportions seem designed more by common sense than by committee.

The bodywork is painted in a single color with three colorful parts and protecting cladding made of a partly-recycled material called Starkle. Other cost-cutting measures include straps instead of door handles, taillights mounted behind the rear glass, and sliding windows.

Small And Lightweight

Despite its tiny footprint, the Hipster promises enough room for four adult passengers in comfort-oriented bench seats. Behind the split tailgate there is a 70 lt (2.5 cubic feet) boot that can grow to 500 lt (17.7 cubic feet) when the rear seats are folded.

More: Dacia Made A Pickup Out Of The Duster And Forgot The Pickup Part

The interior makes full use of the brand’s “You Clip” accessory mounting system with 11 anchor points for cupholders, armrests, lights, toys etc. In typical Dacia flavor, the user’s smartphone is mounted on a docking station serving as a digital key, a navigation device, and an infotainment system connected to a portable Bluetooth audio speaker. There is also a digital instrument cluster behind the futuristic steering wheel, and dual airbags.

At just 800 kilograms (1,764 pounds), the Hipster weighs roughly 20 percent less than the Spring subcompact hatchback. That weight-saving mindset carries through to its environmental goals, as Dacia aims to cut the car’s full lifecycle carbon footprint in half compared to conventional EVs by using less material and energy overall.

Enough Range For Half Of The Week

The exact battery capacity and motor output remain undisclosed, but Dacia hints that the Hipster’s range is tailored for real-world habits rather than marketing numbers.

According to the company, research shows that 94 percent of French drivers cover fewer than 40 kilometers (25 miles) daily, or about 280 kilometers (174 miles) a week. The Hipster is designed to manage typical routines with only two recharges per week, suggesting a usable range near 93 kilometers (58 miles).

From Idea To Reality

Dacia’s take on reinventing the car is not just a design study. It is clear that the company wants the Hipster to evolve into a production offering that could shake up the EV market in Europe. This could happen with the upcoming regulatory changes allowing smaller and more affordable EVs to be sold across the continent.

Interestingly, the Hipster is different from the budget-friendly electric hatchback that was teased earlier this year promising a sub-€18,000 starting price and a mid-2026 debut. Besides unveiling the new concept, Dacia has also introduced an updated Spring EV, alongside facelifted versions of the Sandero, Sandero Stepway, Loggan, and Jogger.

Dacia

The next few years will be make-or-break for Rivian, a brand still trying to prove it deserves a permanent seat at the EV table. For now, its line-up is limited to two models, the R1S SUV and the R1T pickup, both confined to North America. Sales and production have stumbled rather than soared, and momentum has been hard to come by.

To inject some life into the portfolio, Rivian plans to launch the smaller and more affordable R2 in the first half of 2026. This SUV is being positioned as both a volume-builder and the company’s ticket to international relevance.

Read: Rivian’s R2 Spotted With A Very Interesting Rear Window

Rivian has been planning to grow beyond North America for quite some time, and according to boss RJ Scaringe, it’ll first expand into Europe after the R2’s American launch. The UK, is one of the markets being targeted by the brand, although Scaringe didn’t provide any indication as to exactly when we can expect to see his company’s EVs on the other side of the Atlantic.

A Different Kind of Entry-Level

While recently speaking with Autocar on the sidelines of the Munich motor show, Scaringe described Rivian’s upcoming models as “highly aspirational but highly attainable,” noting that the two qualities rarely align. “Often, when you see the price go down, you see the desirability drop off. But this is what makes our R2 and R3 so interesting: they’re inviting and attainable in their pricing, but they still feel very special,” he said.

It’s likely that the smaller and cheaper R3 will follow in the footsteps of the R2 and will also be sold globally. Moreover, a European launch for Rivian means it will have to start building vehicles in right-hand drive, which will require significant alterations to be made to its factory tooling.

The Numbers That Matter

In the US, the R2 is expected to start at around $45,000, will utilize Rivian’s new midsize platform, and should be available in single-, dual-, and tri-motor configurations. A European price tag of between €40,000 and €50,000 is to be expected for the R2, with the R3 undercutting it slightly.

Rivian has also confirmed where the cars will be built. Production of the R2 will be split between a forthcoming multi-billion-dollar facility in Georgia and an expanded line at its existing plant in Normal, Illinois

Overall car sales in Europe grew by 5 percent to 790,000 last month, buoyed by continuing enthusiasm for electric cars across the continent. Plug-in hybrids saw particularly strong momentum, with registrations climbing to 83,900 in August, a 59 percent increase on the previous year that lifted their market share to 10.6 percent.

Related: Global Electric Car Sales Jumped 25 Percent While Canada Dropped By A Third

According to Jato Dynamics figures, battery-electric cars (BEVs) also posted gains, up 27 percent compared with August 2024, giving them a record 20.2 percent market share, up 3.6 percentage points year on year. That brings Europe’s total for fully electric registrations in 2025 to 1.54 million so far. Analysts caution, however, that the headline growth figures for BEVs may not tell the full story

Numbers With Caveats

“The data shows that there was strong demand for BEVs in August, however a 27 percent increase is less significant than it looks when you consider how widely they are being promoted across Europe,” said Felipe Munoz, Global Analyst at JATO Dynamics. “The new record market share for BEVs achieved last month has been partly distorted by the fact that Italy – typically a less enthusiastic adopter of BEVs – is usually quiet during August,” Munoz added.

Europe Car Sales

Jato Dynamics

China’s Growing Momentum

Yet Europe’s traditional manufacturers may find little comfort in these results. The bad news for Europe’s carmakers is that interest in Chinese brands is growing at an even faster rate, and it’s coming at the expense of some very big household names.

Audi shifted 41,300 units in August, and Renault moved 37,800. Both are major players in the market but were outmaneuvered by Chinese brands who registered 43,500 sales, up a massive 121 percent versus August 2024, Jato reports.

Granted, that ‘Chinese brands’ figure is made up of 40 different automakers, but Jato points out that 84 percent of the total was achieved by only five of them, namely MG, BYD, Jaecoo, Omoda and Leapmotor. Whichever way you cut it it’s bad news for Europe’s legacy brands, and is only going to get worse, though at least Stellantis’s deal with Leapmotor means it gets to celebrate the win.

Even on their own, the Chinese brands took some big scalps. MG registered more cars than Tesla and Fiat, BYD beat Suzuki and Jeep, and Jaecoo and Omoda outsold Alfa Romeo and Mitsubishi.

“European consumers are responding positively to the growing, competitive line-up from China’s car brands,” Jato analyst Felipe Munoz said. “It appears that these brands have successfully tackled the perception and awareness issues they have experienced.”

Hybrids, not just EVs

It’s not only in the EV segment that Chinese brands are making gains. They’re also doing great in the PHEV space, where they’re not hobbled by the same tariffs applied to their fully electric vehicles.

More than 11,000 Chinese-brand plug-ins were sold this August compared with only 779 in the same month last year, BYD is now the eighth most popular PHEV brand overall and the BYD Seal U, Jaecoo J7 and MG HS bagged three spots in the top 10 best-selling models list.

However, if you simply looked at the table of 10 most-registered models, you’d never guess how quickly China was moving forward. The list contains no names from the People’s Republic and continues to be dominated by Volkswagen and Renault.

The VW T-Roc (which has since been facelifted) was the region’s biggest seller, with the Dacia Sandero scooping second spot and Toyota’s Yaris Cross bagging third. Tesla’s updated Model Y was the best-selling EV, but its sales were down 37 percent and it was nowhere to be seen in the overall top 10 cars table.

The Mitsubishi Eclipse Cross is dead. Long live the new Eclipse Cross EV. This second generation SUV is a complete departure from its predecessor, pairing the electric foundations of the the Renault Scenic E-Tech with Mitsubishi-specific design elements. Built by Renault in France, the new model will be sold exclusively in Europe.

More: The Most Mitsubishi Thing About Its New Hybrid SUV Might Be The Logo

The Eclipse Cross EV joins Mitsubishi’s growing European lineup of Renault-based models. It follows the Colt (Clio), ASX (Captur), and Grandis (Symbioz) as another example of badge-sharing strategy. Positioned in the compact SUV segment beneath the Outlander PHEV, it also becomes Mitsubishi’s second all-electric model in Europe, after the discontinued i-MiEV city car.

Recasting Renault’s Scenic

The clearest way to spot the Japanese twist on the Scenic is up front. Mitsubishi has reworked the face with distinctive split LED headlights, a redesigned but fully covered grille that looks similar to the Outlander, and reshaped bumper intakes. At the rear, updated LED taillight graphics and a heavier dose of glossy black trim set it apart from the Renault, alongside the fresh branding.

The profile looks familiar but there is a new chrome trim on the D-pillars and more futuristic wheels measuring 19 or 20 inches in diameter. Overall, the new model dropps the coupe-SUV proportions of the first Eclipse Cross, which launched in 2017 and gained a facelift in 2020. In terms of footprint, it is incrementally smaller than its ICE-powered predecessor, measuring 4,470 mm (176 inches) long, although its wheelbase is significantly larger stretching to 2,785 mm (109.6 inches).

Inside, the cabin adopts Renault’s digital setup with a 12.3-inch instrument cluster and a portrait-style 12-inch infotainment screen running Google’s built-in services. For the sake of differentiation, Mitsubishi has added new options for the interior trim and upholstery. Other cool features include the electrochromic glass roof, the LED ambient lighting, and the Harman & Kardon Premium audio system.

A full suite of driver assistance tech is available, offering semi-autonomous driving on the highway. Finally, practicality is served by two rows of seating and a cargo area that ranges between 478-1,670 lt (16.9-59 cubic feet) depending on the position of the rear bench.

Shared Underpinnings

The Eclipse Cross EV rides on the CMF-EV platform (Ampr Medium) which is already used in the Renault Megane/Scenic E-Tech and the Nissan Leaf/Ariya.

More: Mitsubishi’s New Kei Van Channels Its Inner Pajero

Power comes from a front-mounted electric motor producing 215 hp (160 kW / 218 PS), with a 87 kWh battery pack offering a range of approximately 600 km (373 miles). The battery has a water-cooled thermal management system and is compatible with charging speeds of up to 150 kWh.

Mitsubishi has also confirmed that a mid-range version will follow in 2026. This one will most likely use mirror the specs of the entry-level Scenic E-Tech with 168 hp (125 kW / 170 PS) and a 60 kWh battery.

Designed, Manufactured And Sold In Europe

The new EV will be manufactured at the Douai factory in France as part of the Renault-Mitsubishi-Nissan Alliance, starting in Q4 2025. The same facilities are the home of production for the Renault Megane E-Tech, Scenic E-Tech, R5 E-Tech, Alpine A290, and Nissan Micra EV.

While the new Eclipse Cross is not expected to cross the Atlantic, Mitsubishi has confirmed it will launch another electric crossover for North America in the summer of 2026. This one will be slightly smaller and share its underpinnings with the new Nissan Leaf.

Mitsubishi

Ford’s fiasco in Europe continues to get worse and this time it could cost 1,000 employees their jobs. he workers are based at the Cologne Electric Vehicle Center in Germany, where the Capri and Explorer EVs are assembled. Both models have been struggling to gain traction in the market.

Those two models are essentially reworked versions of the Volkswagen ID.4 and ID.5. The latter was already a niche product and having a Ford version, in the form of the Capri, was a pretty obvious misstep.

Jobs On The Line

Of course, corporate heads rarely roll over these mistakes so workers end up paying the price. In this case, the Associated Press says up to a thousand people could be out of a job. That’s a significant amount as Ford says there are 4,090 employees at the Cologne plant.

More: Ford Walks Back All-EV Promise For Europe By 2030 Due To Wavering Demand

This equates to a roughly 25% cut and the company will thin the herd with a combination of buyouts and voluntary departures. However, there’s little doubt that some people will lose the job they’ve been counting on.

Market Realities

In a statement, the automaker blamed the move on electric vehicle demand that was “significantly below industry forecasts.” The Wall Street Journal also reported the company cited evolving regulations as well as a lack of charging infrastructure investment. Some countries have also reduced or eliminated subsidies, making electric vehicles less appealing.

Thanks to this combination of factors, the Cologne plant is reportedly dropping down to one shift beginning in January. It’s the latest setback for workers as Ford announced plans to cut 4,000 jobs in Europe last November.

The automotive industry’s transition to electrification has been a lot rockier than many had predicted due to shifting customer preferences, ever-changing regulatory hurdles, and market-specific demands, forcing carmakers to respond. While the growth in sales of electrified vehicles has slowed somewhat, new data reveals they continue to gain popularity, accounting for a larger slice of the overall market.

Through the first eight months of this year, an estimated 12.5 million battery-electric vehicles and plug-in hybrid vehicles have found homes around the world. This represents a significant 25 percent spike over the year prior and has been led by surging demand in most important markets. However, North America is lagging behind.

A Continent Out Of Step

Read: The World Is Racing Toward EVs While America Barely Leaves The Driveway

According to data from Rho Motion, this year a total of 1.3 million BEVs and PHEVs have been sold in North America, which is just a 6 percent increase from last year. By comparison, sales in Europe are up 31 percent, those in China have increased 25 percent, and sales across the rest of the world have jumped 44 percent to roughly 1 million units.

Canada is dragging the rest of North America down. After the iZEV rebate was paused earlier in the year, Canadian BEV and PHEV sales have fallen one-third year-to-date. By comparison, sales are up in the United States and experienced a particular surge in August due to the impending end of the federal EV tax credit on September 30.

Slowing Momentum

In August alone, global sales of BEVs and PHEVs increased by 15 percent from the year prior, but this rate was the lowest jump since January. In total, 1.7 million BEV and PHEVs were sold in August, representing a 5 percent jump from July.

China, the world’s largest EV market, illustrates the slowdown. Sales still climbed 6 percent compared with August 2024, but the rise fell short of expectations. Last year’s numbers were inflated by unusual surges in July and August, when China broadened its trade-in scheme for new energy vehicles, making this year’s performance look softer by comparison.

Lead image: Stefan Baldauf & Guido ten Brink

Thanks to recent BMW concepts, as well as a series of detailed renderings, we have a good idea of what the next-generation 3-Series will look like. Arriving in both combustion form as the 3-Series and as a fully electric i3, the compact luxury sports sedan will be the latest to carry the brand’s Neue Klasse design language, launching with a more thoroughly updated and modernized look.

Read: The One Badge BMW Didn’t Want Us To See On The Electric M3

BMW has recently begun testing the new model with various powertrains near its base in Munich, Germany, and this particular prototype is interesting. Whereas others snapped testing in recent months have had plenty of faux body panels to throw off our prying eyes, this is the first we’ve seen with production-ready headlights.

A Sharper Face

As we expected, they are very similar in shape and size to the original Vision Neue Klasse concept and suit the new-age sedan nicely. They’re edgier than the ones used in the current 3-Series and flow neatly into a set of much smaller, narrow-style kidney grilles. The result in a classier front end, addressing one of the most controversial elements of the existing model.

Of course, it’s not just the face of the 3-Series that is due for a major overhaul. All of the exterior panels will be changed, too, with some parts, such as the door and rear quarter panels reminiscent of those on the current 5-Series. The taillights also appear neatly integrated into the tail of the four-door sedan, although it’s difficult to know if the ones on this prototype are the final production units.

Two Architectures, One Lineup

Interestingly, the new 3-Series and the all-electric i3 are expected to use different platforms. Whereas the EV will use the Neue Klasse architecture seen in the iX3 SUV, the combustion model will stick with the CLAR platform.

ICE models will be offered with several different 2.0-liter four-cylinder and 3.0-liter inline-sixes, depending on the market. Meanwhile, the next M3 will use a version of current model’s 3.0-liter twin-turbo six, albeit with the addition of a mild-hybrid system.

More: The iX3 Is BMW’s Neue Klasse Future Now With A Surprising Price Tag

BMW has not announced when the new 3-Series will hit the market, but we expect to see it unveiled sometime next year alongside the new i3, before it is introduced as a 2027 model. Until then, the camouflaged prototypes will continue roaming the streets around Munich, offering occasional glimpses of what’s to come.

SH Proshots

For years, solid-state batteries have been viewed as the holy grail for battery-electric vehicles, promising better driving range, quicker charging, and improved safety. While it’s taken longer than many had predicted for solid-state battery packs to hit the market, Mercedes-Benz has demonstrated just how transformative the technology could be.

Read: Lucid Shatters World Record With A Drive So Long It Seems Impossible

The German automaker is testing solid-state packs in specially prepared EQS prototypes. One of these cars recently drove from Stuttgart, Germany, through Denmark, and into Malmo, Sweden, covering an impressive 748.8 miles (1,205 km) on a single charge, without stopping to plug in.

Solid-State Advantage

Compared to the battery in a standard EQS, Mercedes says its solid-state pack delivers 25 percent more energy while remaining similar in weight and size. The pack was developed in partnership with Mercedes-AMG High Performance Powertrains and the company’s F1 technology center in the UK, using lithium-metal cells supplied by U.S.-based Factorial Energy.

The 748.8 miles (1,205 km) driven in this EQS prototype exactly matches a recent Guinness World Record set by a Lucid Air Grand Touring, which covered the same 748.8 miles (1,205 km) on a single charge. What makes the feat notable is that Lucid’s car used a conventional 117 kWh lithium-ion battery, while Mercedes managed it with a solid-state pack that still had energy left over.

Range To Spare

Had Mercedes-Benz wanted to continue its journey with this EQS, it could have. They claim that at the end of the trip, the prototype had an estimated range of 85 miles (137 km) left. In theory, that means the electric sedan could have traveled up to 834 miles (1,342 km) without charging, well beyond anything currently on the market.

“The solid-state battery is a true gamechanger for electric mobility,” member of the board of management of Mercedes-Benz Group AG, Markus Schäfer, said. “With the successful long-distance drive of the EQS, we show that this technology delivers not only in the lab but also on the road. Our goal is to bring innovations like this into series production by the end of the decade and offer our customers a new level of range and comfort.”

China is pulling further ahead of the United States and Europe in the race toward electrification, with a new study shedding light on how quickly vehicle fleets are expected to transition to EVs. While the U.S. and Europe are moving in the same direction, their pace is notably slower.

In a report published this week, EY, one of the world’s largest professional services and consulting firms, forecasts light vehicle sales through 2050 across the three major regions.

Europe On The Rise

One key takeaway is that in Europe, EV sales will surpass those of gasoline and diesel vehicles by 2028. The shift will accelerate from there, with electric vehicles projected to exceed half of all new light vehicle sales in Europe by 2032.

Read: Tesla’s EV Market Share Just Sank Below 40% But It Might Not Even Care Anymore

Interestingly, the study noted that until 2030, hybrids, including PHEVs, will continue to outsell BEVs in Europe until 2030. However, as CO2 regulations become stricter and more affordable pure electric cars hit the market, they’ll soon start to outsell hybrids too.

“The near- to mid-term future will feature a diverse mix of powertrains, shaped by regulatory shifts, tariffs, and evolving consumer behaviour,” explained Constantin M. Gall, EY Global Aerospace, Defense & Mobility Leader. “What’s clear is that e-mobility will remain central to the future of transportation.”

What About The US?

Compared to Europe, the switch to EVs in the United States will be much slower. EY forecasts a brief surge in sales this month ahead of the expiration of federal EV tax credits, but the long-term outlook has weakened. In an earlier projection, BEVs were expected to reach 50 percent of U.S. light vehicle sales by 2034. That milestone has now been delayed to 2039, with factors such as policy uncertainty, import tariffs, and the loss of incentives slowing adoption.

More: Europe’s EV Buyers Are Dumping Tesla And China Couldn’t Be Happier

Hybrids are expected to fill the gap. Their share of the U.S. market could climb to a peak of 34 percent by 2034 before giving way to wider EV adoption.

China Leads The Pack

In China, the shift is happening much faster. This year, combined sales of battery-electric vehicles and plug-in hybrids in the country are tipped to reach 50 percent and will surge past 90 percent by 2034. Interestingly, BEV sales alone are only expected to account for 50 percent of light vehicle sales by 2033, a year behind Europe, showing just how important PHEVs will remain in the country through the next decade.

“The EV transition is advancing—but unevenly,” Constantin M. Gall from EY said. “The US faces policy uncertainty, high costs, and infrastructure gaps. Europe is on a steady recovery path under strict emissions targets. China benefits from stable policy and a robust EV ecosystem. Hybrid technologies are proving essential in bridging the gap to full electrification.”

For automakers, the uneven timelines mean strategy can’t be one-size-fits-all. Success will depend on building flexible platforms that can serve fast-moving markets like China and Europe while keeping slower adopters in North America engaged.

While Hongqi may be unfamiliar to most car buyers outside China, at home it is recognized as the nation’s leading premium brand. Founded in 1958, it is among the country’s oldest carmakers having established itself at the top of the market, with early models reserved exclusively for high-ranking government officials. The name itself translates to “red flag,” a direct nod to the Communist revolution that shaped modern China.

Read: China’s Hongqi Rolls Into Germany With Ambitious E-HS9 Electric Luxury SUV

Now Hongqi has its sights set far beyond domestic roads. The company is embarking on a major expansion into Europe, where it hopes to build recognition alongside other Chinese automakers like BYD, Chery, and Changan that are already moving aggressively into the region.

That ambition took center stage earlier this week at the Munich motor show where it unveiled the mid-size electric EHS5 SUV. While it could be easily discounted as yet another electric SUV with a rather generic Chinese design, it will play an important role in the automaker’s growth across Europe. By 2028, Hongqi plans to launch no fewer than 15 new electric and hybrid models across the continent.

Building A Foothold

The premium Chinese brand has already dipped its toes into Europe, with cars currently available in Norway, the Netherlands, and Poland. The broader vision is much bigger: more than 200 dealerships across Europe by 2028, paired with a steadily expanding product line.

Details about the full range of incoming models remain under wraps, but one partnership has been confirmed. Chinese automaker Leapmotor will supply Hongqi with an EV platform that will underpin several upcoming vehicles, the first of which is scheduled to debut in the final quarter of 2026.

The Hongqi EHS5

Visually, the new EHS5 has some strong points, and some weak points. From the front, it’s reminiscent of some models from Deepal and there’s nothing particularly inspired or unique about its profile. However, the rear-end is quite striking thanks to the curvy LED taillights.

Underpinning the EHS5 is an 85 kWh lithium-ion battery pack that’s said to give it a WLTP driving range of around 342 miles (550 km). Hongqi has yet to disclose full specifications for the SUV, but has said it can charge from 10-80 percent in just 20 minutes.

Power figures for the European model have yet to be announced, but in China, it’s available in 339 hp rear-wheel drive and 610 hp all-wheel drive specifications. Given that the Chinese model has a much larger 111 kWh battery, lower power figures are likely for the Euro-spec version.

Chinese automakers are no longer quietly edging into Europe, they’re making a full-scale push that is chipping away at local brands’ sales. The latest entrant is GAC, arriving with an ambitious target of selling more than 50,000 vehicles a year in Europe by 2027.

At the Munich motor show, the company displayed the GAC Aion UT compact hatchback and the GAC Aion V midsize SUV. Its European lineup will also feature the fully electric GAC Aion Y crossover along with the more premium Hyptec HT coupe-SUV. Every model is electric for now, though a plug-in hybrid will join the portfolio later.

More: GAC Aion UT EV Starts At $9,600, Packs Up To 260 Miles Of Range

The president of GAC International, Wei Haigang, told CNBC at the Munich show that Europe is one of the company’s five key markets. “It is a strategic market,” he said, adding that GAC hopes the region will become a major part of its overseas business in the years ahead.

Growth by the Numbers

Haigang projected sales of 3,000 GAC cars in Europe this year, climbing to 15,000 in 2026 and more than 50,000 by 2027. That would represent a seventeenfold increase in just two years, yet the figure still pales next to the company’s domestic performance. In 2024, GAC sold 127,000 vehicles in overseas markets, contributing to global sales of 2,003,058 units.

Photos Stefan Baldauf & Guido ten Brink

To ease the impact of tariffs on Chinese imports, GAC is weighing the idea of producing cars within Europe. Haigang emphasized hopes for progress in trade negotiations but said the company is also preparing to localize manufacturing to better serve European customers.

“We are hoping the Chinese government and the European Union can negotiate further to bring the tariffs down,” Haigang said. “In the future, we hope to accelerate the manufacturing localization. So that we can build up manufacturing capability in Europe, to better serve the European markets.”

More: Chinese Smartphone Giant’s European EV Push Might Spell Trouble For Tesla

Industry data underscores how quickly Chinese brands are gaining ground. According to Jato Dynamics, their combined market share in Europe nearly doubled in the first half of 2025 to 5.1 percent, equal to 347,135 units. BYD leads with 70,500 sales, while other names such as Jaecoo, Omoda, Leapmotor, and Xpeng are posting sharp growth as well.

Photos Stefan Baldauf & Guido ten Brink

Volvo may have walked back its commitment to transition to an all-electric brand by 2030, but despite that, it still acknowledges that EVs are the way forward, even if it takes the industry a little longer than originally forecast to make the shift.

Read: New Volvo XC70 Dumps Its Wagon Past And Goes Full Crossover

As electrification begins to grow and brands from China establish themselves as serious global juggernauts, the Swedish automaker’s CEO predicts that some Western carmakers will collapse.

Since April, Volvo has been led by Hakan Samuelsson. The 74-year-old Swede had previously steered the carmaker for almost a decade but stepped down as boss in 2022, only to be brought back on a two-year contract to steer Volvo through choppy waters. Samuelsson believes that “there’s no turning back,” against the inevitable electric transition of the industry and that new dominant players will emerge.

Industry Upheaval Ahead

“The industry will be electric – there’s no turning back,” he told Bloomberg. “It may take a bit longer in some regions, but the direction is clear. In (about) 10 years, cars will all be electric and they will be lower cost. There will be new dominant players, exactly as Ford, GM, Toyota and Volkswagen were in the old world.”

“In the new world, there will be two or three very strong Chinese brands,” Samuelsson added. “That makes the room for the old ones tougher. So this will trigger a (wave of) restructuring. Some companies will adapt to new circumstances and survive. Others will not.”

An Electrified Future

To ensure it can survive, Volvo is investing heavily in battery-electric vehicles and plug-in hybrids, ensuring it can cater to demand for different electrified vehicles around the world. According to Volvo’s boss, plug-in hybrids will serve as an important “bridge until charging is everywhere,” noting that it “may take some more years beyond 2030,” before EVs can dominate, depending on customer demand and charging infrastructure.

Chinese Ties As An Advantage

Volvo is in a unique position among European car manufacturers as its parent company, Geely, is Chinese and among those brands at the forefront of the EV revolution as the owner of brands including Lotus, Zeekr, Polestar, and Lynk & Co. Samuelsson noted that “the stronger the Chinese car industry becomes, the more valuable our connection with Geely is.”

“Chinese brands are already more than half the market in China, and they are entering Europe. That puts pressure on Europeans and Americans, who are competing in a shrinking part of the market,” he added. “China, whether we like it or not, will be a very big player in the car industry in the future, not just in China.”

The arrival of the new all-electric Mercedes-Benz GLC with EQ Technology marks more than just a significant model launch. It also signals the start of what Mercedes describes as the largest product offensive in its history.

Read: Star-Stricken Mercedes GLC EV Has A Grille Big Enough To Swallow A BMW iX3

Over the next three years, the company plans to launch more than 40 new models while working to significantly cut production costs. At the same time, it is making the controversial shift away from a pure luxury focus in order to pursue higher-volume, more affordable vehicles aimed at strengthening its financial position.

To prepare itself for a slew of new models, Mercedes has invested more than €2 billion ($2.3 billion) in its European assembly plants. Once the production ramp-up of the new electric CLA is completed at its Rastatt site in Germany, the brand will start building the GLC EQ in Bremen as well as the all-electric C-Class EQ in Kecskemét.

Expanding the Lineup

At the same time, the carmaker’s Sindelfingen plant will begin producing new electric models from Mercedes-AMG, including the production version of the recently unveiled Concept AMG GT XX.

While speaking at the launch of the new electric GLC, Mercedes-Benz chief executive Ola Källenius noted that “with the new electric GLC, the biggest product launch in our company’s history continues to gain momentum.”

Among the lesser-publicized additions is the upcoming VLE, an all-electric luxury MPV developed on the company’s new Van Electric Architecture. Designed to carry up to eight passengers, it highlights Mercedes’ intent to cover a broad range of segments. The lineup also expands with an electric “baby” G-Class SUV, a refreshed S-Class, next-generation versions of the GLA and GLB, and more.

Digitialization and AI

As Mercedes ramps up the production of several new models in Europe, it’ll integrate its MO360 and MO360 Data Platform production ecosystems into the plants, allowing for ‘digital twins’ of the sites to be made, where future improvements can be tested and verified before being implemented into the plants.

More: Mercedes Drops The “L-Word” And Is Ready To Flood The Streets With Mainstream Cars

Mercedes-Benz has also said that it will decrease production costs by 10 percent between 2024 and 2027. In addition to using digitalization to help achieve this, Mercedes will use artificial intelligence, increase the use of renewable energy, and push for greater production and logistics efficiency. 

Yet another Chinese electric SUV has launched in Europe, and this one has the potential to be quite popular. Known as the S05, it comes from the Changan-owned Deepal brand and will be available in three different guises, starting from €38,990 ($45,900) in Germany. With a sharp exterior design and a minimalist cabin, could it rock the establishment in the same way that many BYD models have?

All versions of the Deepal S05 to be sold in Europe come standard with a 68.8 kWh battery, which is quite small for an SUV of this size. The base model, known as the RWD Pro, features a single electric motor producing 268 hp and 214 lb-ft (290 Nm) of torque, allowing it a 0-100 km/h (62 mph) in 7.5 seconds and a 180 km/h (112 mph) top speed. None of those figures is world-beating, but they are definitely adequate for daily driving duties.

Read: Deepal G318 Is A Range-Extender EV With Up To 424 HP From Twin Electric Motors

The RWD Pro offers an estimated range of 301 miles (485 km) on the WLTP cycle. For those who want a little more equipment, the mid-tier RWD Max, priced from €41,990 ($49,400) in Germany, carries over the same powertrain and quoted range. At the top of the lineup sits the AWD Max.

More Power, Less Range

Thanks to the inclusion of a second electric motor, this model delivers 429 hp and 370 lb-ft (502 Nm) of torque, allowing it to reach 100 km/h (62 mph) in 5.5 seconds. Unsurprisingly, the added power cuts the vehicle’s range down to 276 miles (445 km).

Photos Stefan Baldauf & Guido ten Brink

While there’s nothing extraordinary about the exterior design of the S05, it does look reasonably sporty with sharp headlights, taillights, and an attractive shape. Like so many other EVs out of China, the interior is relatively sparse, but it does appear to be clad in some lovely leather. Notably, the vehicle features a 15.4-inch infotainment display, two wireless charging pads, and two cupholders.

Price and Positioning

Compared to the Model Y, the Deepal S05 from Changan is noticeably cheaper, as the Tesla starts at €44,990 ($53,000) in Germany for the base RWD version. However, the S05 is significantly pricier in Europe than it is in its home market, largely due to import tariffs, local taxes, and added fees. In fact, in China, the Deepal starts at just 119,900 yuan, which is the equivalent of just $16,800 or €14,300.

Toyota is making a major push in Europe with a substantial investment in its Czech Republic factory, which will soon produce the company’s first battery-electric vehicle built on the continent. While Toyota has shared figures on the scale of the expansion and the money involved, it has yet to reveal anything about the EV itself.

Here’s what we do know. Toyota will invest €680 million (equal to $792 million at current exchange rates) at its factory in Kolin, expanding it from 152,000 to 173,000 square meters. Not only will this expansion include a new production line for the EV, but it also new paint and welding shops. Of the €680 million being invested, up to €64 million ($74.5 million) will be provided by the Czech Government.

Read: Toyota’s Lineup Overhaul Could Include A Surprise Sedan And Electric Highlander

Currently, the Czech factory produces the Yaris Hybrid and Aygo X and has an annual capacity of roughly 220,000 vehicles. While it’s certainly possible the EV in question could be based on the same TNGA-B architecture as the Yaris, Toyota has previously indicated that now is not the right moment to launch such a small EV, hence why it is currently focused on the C, D, and E segments.

Government Backing

The scale of the project drew praise from Czech Prime Minister Petr Fiala, who highlighted both the economic and strategic importance of the investment. “I am very glad that the Czech Republic managed to secure such a significant foreign investor as Toyota, even though other countries were also interested in this investment into electric car production,” he said.

Fiala also noted that the funding not only expands Kolín’s production capacity but also strengthens the country’s technological base, which is vital given that the automotive industry contributes about 10 percent of the nation’s GDP.

A First For Europe

Whatever shape the upcoming model takes, it will mark a milestone for Toyota as the first battery-electric vehicle it has ever produced at a European facility. For the automaker, it’s both a regional commitment and a step toward balancing its global EV strategy with Europe’s accelerating shift away from combustion engines.

Tesla’s grip on Europe’s EV market is weakening fast, and the latest Model Y isn’t slowing the slide. In July 2025, the automaker’s sales plunged 40 percent year-over-year across the European Union, the UK, and the EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland), even as demand for electrified vehicles accelerated across the continent.

According to the European Automobile Manufacturers’ Association (ACEA), battery-electric, hybrid, and plug-in hybrid models together captured 59 percent of new registrations, marking an all-time high for electrified powertrains.

Losing Charge Where It Counts

The contrast could not be starker. Across the EU, EFTA, and the UK, Tesla registered 8,837 cars in July, a massive drop from nearly 14,769 a year earlier. Within the EU alone (since the UK formally exited the Union in January 2020), sales fell even further, down 42.4 percent to 6,600 units. That decline cut Tesla’s European market share from 1.4 percent to just 0.8 percent for the month

More: New Tesla Model Y Performance Turns Supercar Thrills Into A Bargain Family Affair

As Tesla stumbled, Chinese automaker BYD surged ahead. Its registrations across Europe soared 225 percent in July to 13,503 units, giving it a 1.2 percent share of the market and nudging it past Elon Musk’s brand. The rapid rise highlights how quickly Chinese manufacturers are capitalizing on Europe’s demand for affordable, well-equipped EVs, reshaping the competitive balance in the process.

Year-to-date figures still leave Tesla in front with a 1.5 percent share, compared with BYD’s 1.1 percent. But the gap has narrowed considerably, with Tesla down from 2.3 percent in 2024 and BYD tripling its position from 0.3 percent.

Can Tesla find a way to bounce back in the four months that remain until the year ends? Maybe, maybe not – but if it were our money, we wouldn’t bet on it. See, it’s going to be an uphill struggle as Chinese rivals (of which BYD is a prime example) have swarmed Europe with a wide range of hybrids and EVs that are both very competitive on their own right and priced to undercut the competition, thus enticing buyers.

The challenge is not limited to tough competition. Elon Musk’s divisive reputation among European consumers has dampened enthusiasm, while the updated Model Y has generated only modest interest. Tesla now added a new Performance trim to the lineup, but being the most expensive model in the range, it is unlikely to give sales much of a boost.

Europeans Are Choosing Electric

According to data from ACEA, European sales of electrified vehicles recorded sharp increases in July. More specifically, BEVs were up 39%, hybrids climbed 14%, and PHEVs gained 57%, showing that customer interest is growing.

More: China’s Cheap EVs Are Winning A Battle Legacy Brands Pretend Isn’t Even Happening

The year-to-date figures for the EU, EFTA, and UK regions paint a clear picture of the ongoing trend. Sales of vehicles with electrified powertrains are on the rise between January and July 2025, with +26% for BEVs (1,376,720 units), +25% for PHEVs (703,615 units), and +15% for Hybrids (2,755,421 units).

By contrast, traditional fuels are in retreat. Gasoline sales dropped 21 percent to 2,193,273 units, and diesels fell 26 percent to 658,486 units. Despite these shifts, the overall market has held steady at 7,900,877 units sold so far this year.

Source: ACEA

In a bid to protect its car industry, as well as hit back at Chinese carmakers for receiving unfair subsidies from their government, the European Union has been imposing hefty tariffs on imported EVs from the People’s Republic since October 2024. However, Chinese brands are already looking to circumvent the tariffs as much as possible by setting up local production facilities and, at least for the time being, increasing their focus on hybrids.

Where There’s a Will, There’s a Way

Hybrids sit in a relatively safe zone, since they’re only partially covered by the EU’s tariff system. Combined with the fact that they remain popular with European buyers, it’s no surprise that Chinese automakers are boosting hybrid imports at record levels.

Read: Toyota Finally Blinks As Europe’s EV Market Closes In

A recent report from Dataforce reveals that BYD registered 20,000 plug-in hybrids in the EU through the first half of the year, more than three times the number of PHEVs it imported during the whole of 2024. In addition, MG has imported more PHEVs across January-June than it did in all of 2024. Lynk & Co is also importing more PHEVs to Europe than ever.

Increasing their focus on hybrids greatly benefits Chinese firms. Every EV that BYD sells in Germany is hit with a base 10 percent duty and then a 17 percent additional duty, bringing the tariff up to 27 percent. For the best-selling Atto 3, these tariffs add about €10,000 ($11,600) to the electric SUV. By comparison, the plug-in hybrid BYD Seal U only has to deal with 10 percent duties, or the equivalent of €3,999 ($4,600) based on its €39,999 ($46,600) starting price.

The impact is even more significant for SAIC, which sells MG models. It has to deal with the highest EU tariffs of 45.3 percent for its imported EVs. So, through the first six months of this year, it has sold 60 percent fewer EVs across the continent, but has increased registrations for the hybrid MG HS, MG ZS, and MG 3.

Changing Tactics to Circumvent Obstacles

“It was only a matter of time before the Chinese manufacturers changed their strategy after the introduction of the special tariffs in order to increase their profitability in Europe,” the director of the Center Automotive Research in Germany, Beatrix Keim told Handelsblatt.

It’s understood the European Commission is aware of the loophole being exploited by Chinese brands, but it does not appear to be concerned. Instead, it remains hopeful it’ll be able to work things out by having talks with China’s aggressively expanding automakers.

A hot new version of the Genesis GV60 is just around the corner, thanks to the company’s new Magma division. While it’ll share a lot of its components with the Hyundai Ioniq 5 N and Kia EV6 GT, Genesis insists that the spicy EV will have a character all to its own, thanks in part to some trick software.

The new GV60 Magma has been developed in Korea, but moving forward, all other Magma cars will be developed and tuned by the Hyundai Motor Europe Technical Center near Frankfurt, Germany. Tyrone Johnson is heading up this facility, and given that he played a pivotal role in the creation of the last Ford Focus RS, he’s the perfect man for the job.

Read: Genesis Says Its New Hybrids Will Surprise You

While recently speaking with Top Gear, Johnson noted that Magma models developed in Germany will start to hit the market in 2027, including versions based on the GV80 and G80. He also acknowledged that Magma’s electric models will be designed as more sophisticated and luxurious than the Hyundai Ioniq 5 N.

“N is ‘corner rascal,’” he said. “A Magma isn’t about the track, although it will be track capable. It’s a more sophisticated, luxurious driving machine. It has to be about power, and changes to motors and engines are important. But it doesn’t have to be the most powerful [in its class]. It needs sufficient power. Weight is always important. It’s independent of luxury. You have to have weight in focus, partly because range is important and you get diminishing returns with a larger, heavier battery.”

The Software Revolution

Johnson added that throughout most of his 40-year career in the automotive industry, separating one car from another “was all mechanical engineering.” Now he said, “it’s all software,” adding that it is now possible to “fundamentally change a car with software.” Presumably, this means the GV60 Magma, as well as other Magma products, will have different software to vehicles from Hyundai’s N division, giving them unique driving characteristics.

In all likelihood, the GV60 Magma will feature the same dual electric motors and 84 kWh battery pack as the Ioniq 5 N. As such, it should pump out more than 600 hp, and be capable of hitting 62 mph (100 km/h) in the low-3-second range.

Xiaomi’s entry and subsequent expansion into the automotive world has been a revelation. Less than two years ago it wasn’t even building a single production car; now, it’s manufacturing the hugely popular SU7 sedan and YU7 SUV, both of which have received praise from both owners and reviewers. And come 2027, it won’t just be competing in China.

The company has been eyeing off an international expansion for quite some time, but has remained coy about which markets it would like to enter. However, while recently speaking on an earnings call, Xiaomi president Lu Weibing said the carmaker first plans to enter the European market by 2027 and go head- to-head with the likes of BYD and Tesla.

Read: Xiaomi’s Massive Waitlist Has CEO Suggesting Tesla to Frustrated Buyers

Xiaomi’s automotive push has been fueled by strong momentum at its home market. In the second quarter of 2025 alone, it delivered 81,302 vehicles, H1 total to 157,000. With production of the YU7 accelerating, deliveries are expected to increase, although some customers are already facing waits of more than a year.

Balancing Growth and Losses

Despite rapid sales, the technology giant’s automotive venture lost about 300 million yuan ($41 million) in the latest quarter. Still, co-founder Lei Jun recently said Xiaomi’s carmaking division will become profitable in the second half of 2025, reports Bloomberg.

Earlier this year, it was revealed that Xiaomi is recruiting personnel to work at a new European research and development center. Noteworthy hires include Rudolf Dittrich, who has previously worked at BMW, as well as the Williams and Sauber Formula 1 teams, while former BMW employees include Dusan Sarac and engineer Jannis Hellwig.

What Europe Might See First

It remains to be seen which Xiaomi model will be the first to launch in the Old Continent, but the firm likely hopes to sell both the SU7 and YU7 in the region. It is also hard at work on a third model, currently known as the YU9. This will take the form of a large SUV and will be an EREV with a 1.5-liter turbocharged engine and two electric motors.

While Western auto shows have largely died since the COVID-19 pandemic, September’s Munich Motor Show remains an important event on the automotive calendar and will host the unveiling of the new VW T-Roc. This second-generation model will be sold with ICE, hybrid, and battery electric powertrains and has just been teased for the first time.

The image released of the T-Roc shows a black prototype covered with bright yellow text. Although it only shows the new model from the side, it’s obvious that this is the same vehicle that leaked images revealed earlier this year.

Read: VW’s Electric T-Roc Will Be Separate From The ICE Version

Those photos showed the new T-Roc with a thoroughly revised front fascia, including a large black grille with honeycomb-shaped cutouts, sharp headlights, and an LED light bar. Plenty of changes have also been made to the rear of the model, including the fitment of new LED taillights.

While the T-Roc may not be sold in the United States, it is a hugely important car for VW in Europe. In fact, it consistently ranks among the top-selling models on the continent, often rivaling the likes of the Golf, Renault Clio, and Dacia Sandero in terms of volume. As such, this new model had better win over customers, or else VW’s European struggles could be compounded.

Expanding The Powertrain Mix

In addition to the combustion models, VW will offer the new T-Roc with a full-hybrid system that will be offered in the Golf and Tiguan too. The setup combines a petrol engine with an electric motor that can power the rear wheels on its own or work together with the engine, operating much like Toyota’s approach where the system can switch between petrol, electric, or a blend of both as needed.

VW chief executive Thomas Schäfer noted that this hybrid variant will be particularly important in South America.

“We needed to do it anyway, because South America has a need for an HEV drivetrain – and the T-Roc is built in South America for South America, and also in China,” he told Autocar. “Interestingly enough, HEV has also become a big theme in the US specifically. It’s a technology that everybody said was not necessary any more, but now with the BEV slowdown in the US, the balance is [moving towards] HEVs.”

Electric Future

The electric version of the T-Roc will be underpinned by VW’s new Scalable Systems Platform (SSP), becoming only the second model to use this architecture. It will bring with it ultra-fast charging and Level 4 autonomous capabilities.