+++ Electric vehicle price wars in China show no signs of slowing down, and the stakes are rising fast. BYD , the world’s largest producer of electric and plug-in hybrid vehicles, appears ready to push even harder for market dominance, with reports emerging that it’s pressuring suppliers to cut costs; a strategy that could set off yet another wave of price reductions across the industry. A leaked email from BYD executive vice president He Zhiqi recently surfaced on Chinese social media, revealing the company’s aggressive cost-cutting plans. The email, titled “BYD Passenger Vehicle Cost Reduction Requirements in 2025”, requested a supplier to slash prices by 10% by 2025. He Zhiqi stated in the message, “In order to enhance the competitiveness of BYD passenger cars, we need the entire supply chain to work together and continue to reduce costs”. BYD has confirmed the email’s legitimacy, with a company spokesperson noting that “annual bargaining with suppliers is a common practice in the automotive industry”. They added that BYD frequently puts forward “price reduction targets for suppliers” but insists these are not “mandatory” and can be negotiated. China’s EV price war has been raging for the past 2 years, forcing smaller carmakers out of the market and driving consolidation among others. The battle has also spurred collaborations between Chinese and Western automakers, as seen in Volkswagen’s recent partnership with Xpeng. Increased competition has kept prices low for consumers but has also heightened pressure on carmakers to find new ways to cut costs and stay afloat. BYD has so far emerged stronger from the price wars. The company is on track to sell over 3.6 million vehicles by the end of the year with a gross margin of 21.9% in the third quarter, which is significantly higher than many rivals. BYD’s revenue during the same quarter even surpassed Tesla’s, solidifying its position as a global powerhouse. If trends continue, BYD could soon overtake legacy automakers like Ford and Honda in annual sales. BYD isn’t the only automaker preparing for deeper cuts. For example, SAIC Maxus Automotive recently sent a letter to suppliers asking for a 10% reduction in costs due to the oversupply in the Chinese automotive market. In the letter, the carmaker noted more new car companies are launching and price wars show no signs of stopping. Meanwhile, Tesla remains one of BYD’s most high-profile competitors in China. Earlier this week, Tesla announced a 4% price cut for its Model Y in the country, slashing roughly $1.400 from its price tag. The move highlights Tesla’s efforts to keep pace with BYD and other Chinese automakers, ensuring it stays competitive in a market that is increasingly dictated by affordability. +++
+++ HYUNDAI is gearing up to fill out its Ioniq EV range with a line-up of Euro-centric small cars designed to sit below the popular Ioniq 5 and slower-selling Ioniq 6. The news lands just as the covers come off the brand’s US-focused Ioniq 9 flagship at this year’s Los Angeles Motor Show. While that car will be sold globally, Hyundai Europe’s outlook will be on the longer term, as it aims to capitalise on the hotly contested B and C-segment family-car market. We already know what sister company Kia has planned (the EV3 has hit showrooms and a smaller EV2 has been spied testing) giving us a tangible hint at what might be in store for Hyundai. Speaking to Simon Loasby, head of Hyundai’s global design centre, we asked if the maker would consider doing more localised models aimed at catering for specific market needs or tastes. His response was a simple, “why not?”. He said: “If there’s a need, if there’s a volume, and we have a brand that can take on that volume and do something, then why not? “That gives us a challenge, right? As long as we can satisfy our board that this is worth doing, nothing’s off the table with Hyundai. And the speed we react to stuff is nuts. It drives us mad, but we love it”. The next model is widely expected to be a sleeker alternative to the recently revealed Kia EV3. Likely to use the Ioniq 3 badge, the new Hyundai will sit beneath the blocky Ioniq 5 hatchback, but above the newly launched Inster. Yet although a few common features will link the cars, Loasby says the firm will continue to develop its unique design language and avoid any Audi-style cookie-cutter profiles. “We want kids to say: ‘look at that Hyundai’ ”, he told. “Design freedom? That’s really fun. But it’s difficult too. That’s why we use all our studios around the world: everybody is thinking about solutions”. It’s not clear at this stage exactly how the smaller Ioniq 3 will look, though if the Ioniq 9 is anything to go by, it’s likely to take on a similar crossover shape to the EV3, albeit with a sleeker, smoother body. Hyundai’s now familiar pixel-style lights are all but guaranteed, possibly incorporating a full-width lightbar. While this hasn’t been possible on the Euro-spec Ioniq 9, the Ioniq 3’s dimensions and lower nose could make it a production reality. Speaking more generally about Hyundai’s current design direction, Loasby said: “It’s a really interesting design briefing when there’s not this narrow corridor of what your brand looks like. It makes it really exciting and scary”. The Ioniq 3 may look cool and cutting-edge, but Loasby reiterated that at Hyundai, design absolutely cannot trump usability. “We’re trying to make sure we have that balance of, yes, aesthetic appeal, but logical reasoning behind it”, he told. In order to price the 3 sensibly and on par with rivals like the Jeep Avenger and forthcoming Ford Puma Gen-E, the small Hyundai will shun its bigger brother’s 800 Volt architecture in favour of a more affordable 400 Volt set-up. Expect a choice of 58 kWh and 81 kWh batteries (as per the EV3) for up to 640 km of range. A 10-80 percent charge should be possible in around half an hour. The less expensive electrical tech will still sit within an EV-native platform, however, separating it from its similarly sized Hyundai Kona sister car. At around 4.3 meter long, the Ioniq 3 should offer space for four to sit comfortably, or five for shorter journeys. While the exterior styling differs rather dramatically from one Ioniq to the next, the interior of the new car should be a bit more conventional, with a twin-screen layout and a separate panel for the climate controls. The EV platform would provide space for a completely flat floor and walk-through cabin, making the Ioniq 3 feel more spacious than many of its rivals. Clever features, like the Ioniq 9’s sliding centre console, may also be included. Both the Ioniq 6 and Ioniq 9 followed shortly behind their respective Kia stablemates, so while launch timings for the Ioniq 3 are still to be confirmed, we should see the car out testing soon, ahead of a reveal some time next year. An Ioniq 2 could follow later (possibly in 2026 or beyond) with other numbers (namely 1, 7 and 8) likely planned for the future. Prices and specs will be announced after the Ioniq 3’s reveal, but to keep the car competitive, I expect the base model with the smaller battery to start from around €36.000. Top-spec models with the longest range may tip over the €45.000 SEPP subsidy threshold by throwing niceties like bigger wheels, 360-degree cameras and a panoramic roof into the mix. +++
+++ LAMBORGHINI has confirmed that it’s working on a second-generation Urus that will be designed and developed in the mould of the incredibly popular current generation. The new model is due to arrive some time after 2026, and the company has revealed what to expect of it. When asked about whether a new combustion-engined SUV is on the cards before the 2035 salesban on combustion-engine cars in Europe, Lamborghini’s chief marketing and sales officer Federico Foschini told: “We’re 10 years away from 2035, which is when we should switch, but we can’t stay 10 years with the same car”. Despite Ferrari (Purosanque) and Aston Martin (DBX) using their own bespoke SUV platforms, Lamborghini will continue to utilise technology shared with the wider VW Group in the next Urus. That’s likely to include a similar high-performance V8 hybrid powertrain to that in the recently introduced Urus SE. Federico Foschini said: “We would be stupid not to keep using something that’s at the top of its technology. For us, it’s an advantage until the moment that we are not able to make a car that’s at the top of its game”. This suggests that Lamborghini will continue to use a modified version of future platforms destined for the VW Group’s high-end SUVs such as the Porsche Cayenne and Audi RS Q8. That’s not to say that the platform in use today will be applied wholesale, because Foschini also said: “We will keep on using the platform, as there’s continued innovation from the group that we are wanting to leverage”. Porsche has already confirmed that it is working on a heavy update for its combustion-powered SUV platform for a new generation of Cayenne after the slow take-up of full EVs forced its hand to continue offering petrol-powered models. CEO Oliver Bloom said in a recent statement: “The third generation of the Cayenne will be further upgraded and will continue to be offered alongside the all-electric generation up to and beyond 2030”, suggesting that considerable work is being done behind the scenes to keep these models competitive. When it arrives some time after 2026, the new hybrid-powered Urus will join both the Revuelto and Temerario supercars in a three-pronged Lamborghini line-up, all with hybrid-assisted combustion engines. After that point, the company will finally introduce the all-electric Lanzador GT towards the end of the decade. However, in the short term, Lamborghini won’t introduce an all-electric SUV on any of VW’s future pure-EV platforms, because it wishes to keep the distinction of different models coming with different engines. Given that raw numbers are not the focus when it comes to Lamborghini’s electrification strategy, the company’s EVs instead have to offer a unique experience, and it doesn’t see that coming on an electric SUV in the immediate future. +++
+++ NISSAN appears to be fully in what its CEO has described as “emergency mode”. After committing to hefty job cuts and potentially slowing development, the automaker has just reported further production declines. To make matters worse, the shifting landscape of global trade, particularly the looming threat of tariffs, presents another major hurdle the brand will have to navigate. Globally, production is down 7.1 percent this year, a decline that spans several key markets. In the US, production has dropped by 10.6 percent, while Japan sees a 7.4 percent decrease, and China (a market Nissan has been heavily reliant on) suffers a 12.1 percent drop. The only country where Nissan has managed to increase output is Mexico, which saw a modest 9.8 percent bump in production. It’s almost as if Nissan has managed to put all its eggs in one very fragile basket. When looking at the October data compared to the same month last year, the numbers are even more grim. Production in the U.S. and China fell by 15 percent each, while Europe saw an even sharper 22 percent drop. Mexico, on the other hand, saw a 12 percent bump in October compared to the same month in 2023. Interestingly, sales aren’t down, despite the production fall. Year-over-year, Nissan is actually up 0.1 percent in overall sales so far. By the end of October in 2023 it had sold 2.774.297 cars globally. By the end of October 2024, it had moved 2.777.398 cars. Could it still end up in the negative by year’s end? Of course, but that might not be the biggest issue ahead. President-elect Donald Trump has threatened to impose a 25 percent tariff on both Canada and Mexico once he assumes office. While many automakers rely on Mexican production, this potential tariff would hit Nissan harder than competitors like Ford, given the company’s significant reliance on its Mexican operations. According to an unnamed source within Nissan, the brand has around 12 to 14 months to turn things around. If the pressure continues to mount without a significant positive change for the brand, things could go from bad to worse. For a debt-heavy company already dealing with an uphill battle, this ticking clock could mark the difference between survival and collapse. +++
+++ No sooner said than done: the Chinese consumer electronics group Skyworth had announced that it was coming to Europe with an electric car, and now it has officially launched its first zero-emission car in some markets of the Old Continent. It happens under the SKYWELL brand, which presents itself as the mobility division of the giant from the China. Until now, we have mainly known it for televisions or air conditioners. The group’s idea is the same with which it has built success in other sectors: to provide a reliable product at an affordable price. Only in this case, it has four wheels. The first car to be marketed in Europe will be the Skywell Skyworth K, a 4.72-metre SUV that will arrive in the first quarter of 2025. The car is already available in some markets through parallel import channels and goes by other names (Skyworth EV6, Elaris Beo or Skywell BE11). The car has a 204 hp front engine and an 89 kWh batterypack, promising a range of 490 km according to the WLTP standard. A smaller 72 kWh battery variant with a range of 400 km could be added. The Skywell Skyworth K debuts in France, Belgium, Luxembourg, Spain, Portugal and Switzerland, with prices starting at 39.900 euros. On closer inspection, no cars among its competitors can boast the same size with a similarly low price list. The only exception, perhaps, is the Leapmotor C10. The Skywell offensive includes the arrival of other models. Among the most eagerly awaited is the Skyworth Q, which is expected to have a starting price somewhere between 20.000 and 25.000 euros. Previewed at the Paris Motor Show last October, it has the shape of a hatchback saloon with a length of 4.3 metres. Like all self-respecting electric cars, it features some almost ‘must-have’ styling solutions such as flush door handles and a tapered nose without a grille. The car is powered by the same engine as the Skyworth K but has 2 different battery sizes. Later, between the end of 2025 and the beginning of 2026, the Nanjing giant’s offensive should be completed with the arrival of the Skyworth Y, a three-box saloon with sleek lines anticipated by the Skyhome concept, and the Skyworth Hongtu van, which will mark the debut of the commercial vehicle segment. +++
+++ TOYOTA ’s first rendezvous with its new generation of electric cars has been postponed, initially set for 2026 with the rolling off the assembly lines of the LF-ZC, the Lexus saloon presented as a concept at the Japan Mobility Show in 2023. According to local broadcaster NHK, later picked up by international publications such as Electrive, the company would prefer to take more time to “incorporate some technologies” before moving on to mass production of the car. There is now talk of the first half of 2027. The postponement is part of a general trend of several manufacturers delaying their electrification plans. Toyota even scaled back its target of selling 1.5 million electric cars by 2026 to 1 million units. In the absence of new information, however, I do know that the LF-ZC will give way to cars with new batteries, platforms and production techniques. The group aims precisely at an adaptable and easily upgradable modular structure for multiple models. The bodywork will, therefore, be divided into 3 parts (front, middle, and rear), with the battery housed in the center to allow the other two sections to remain unchanged even if the batteries are modified. Toyota also sees some potential in gigacasting, the “printing” of bodies introduced by Tesla with the help of the Italian company Idra. Returning to the LF-ZC, the saloon promises a range of 1.000 km, a full recharge in just 20 minutes, and a drag coefficient of less than 0.2. The concept’s dimensions are 4.75 x 1.88 x 1.39 metres, with a wheelbase of 2.89 metres. +++
+++ It seems VOLKSWAGEN ’s $5.8 billion joint venture with Rivian has some ambitious projects in the works, and by “ambitious”, I mean important enough to shake up VW’s EV strategy for the next decade. The electric vehicle disruptor will assist VW Group in developing its next-gen EVs, including the highly anticipated Golf Mk9. Rivian is developing a next-generation electrical architecture tailored for software-defined vehicles. The first VW Group brands set to adopt this cutting-edge system will be Porsche and Audi, with implementation beginning in 2027. However, Rivian’s own R2 model could debut the tech even earlier if it stays on track for its planned 2026 launch. Still, the spotlight is firmly on the next-generation Golf, which has been confirmed for 2029 with a fully electric powertrain. Speaking to the media, VW boss Thomas Schäfer shed more light on the company’s future plans, revealing that the Golf was specifically chosen to debut the new software-defined vehicle platform. “We decided on how to do the software-defined vehicle. It will happen with Rivian, the joint venture, where we put the new electric electronics architecture together”, said Schäfer. “But we have also decided that we want to start this journey with a more iconic product. So we’ll start with the Golf”. Schäfer confirmed that the all-electric Golf “will be shown in 2029”, emphasizing that it will be a “real volume product”. The hatchback is set to ride on VW’s new Scalable Systems Platform (SSP), which promises improved efficiency and flexibility for future EVs. Interestingly, the Golf Mk9 could serve as a de facto replacement for the MEB-based ID.3, which is slated for a second facelift in 2026. However, the Golf Mk9 won’t fully eclipse its gas-powered sibling, as the ICE-driven Mk8 is expected to remain in production until 2035, a reminder that VW is hedging its bets as it transitions into the EV era. While VW is pushing forward with the electric Golf, its high-profile Project Trinity flagship EV has hit the brakes, at least temporarily. Originally planned as the brand’s first software-defined vehicle, the Trinity has been delayed amid shifting priorities. “We just switched a little bit, moved it out a little bit, not because we don’t see it as a huge priority, but Trinity was never designed as a volume vehicle”. Schäfer admitted. He didn’t provide specific dates, but recent reports indicate that the launch of the Trinity EV has been pushed back from 2026 to late 2032. Initially, VW had planned to construct a brand-new factory dedicated to this Tesla-rivaling flagship EV. However, the company reversed course last year, choosing instead to modernize its existing plant in Zwickau. According to Schäfer, this decision has proven to be a smart move in light of the economic and supply chain challenges the company is currently facing. The VW Group is already feeling the pinch, with factory closures and cost-cutting measures looming large. Audi’s Brussels plant is set to shut down in February, and the company has proposed a 10% wage reduction alongside the elimination of bonuses. Adding to the tension, mass layoffs remain a possibility which is an option that has provoked fierce resistance from the workers’ union, which has threatened a strike “not seen for decades” if these plans move forward. Amid this unrest, VW’s best hope lies in delivering products that reignite consumer excitement and prove the brand can still compete in an increasingly electrified market. +++