+++ The AUDI E5 Sportback electric fastback’s starting price is sliced by 30.000 yuan ($4.350) in China amid sluggish sales. This BEV could be purchased for 205.900 yuan ($29.910) with the limited-time discount by March 31. AUDI is a new brand under the German automaker and the Chinese state-owned enterprise SAIC. It was created for the Chinese market specifically. AUDI-branded cars have no iconic rings badges. In 2025, the new brand launched its first vehicle called the E5 Sportback. It stands on the Advanced Digitised Platform (ADP). The AUDI E5 Sportback started deliveries in China in August 2025 with a price range of 235.900 to 319.900 yuan. However, China EV DataTracker data indicates that the new model was cold-shouldered by the Chinese market. Its cumulative deliveries reached 7.070 units with just 420 cars sold in January. The new brand urgently needed a plan B to boost sales. As a result, it came up with a discount program. AUDI announced a limited-time 30.000 yuan discount on the E5 Sportback. It includes a 10.000 yuan purchase tax compensation, a 10.000 yuan cash discount and a 10.000 yuan trade-in subsidy. These discounts bring the price range of the electric fastback to 205,900 – 289,900 yuan. With all the limited-time discounts applied, the AUDI E5 Sportback is similarly priced with the Zeekr 007 GT shooting brake from Geely. It is also slightly cheaper than the Xiaomi SU7 sedan. We will remind you that the Audi E5 Sportback has dimensions of 4.881×1.960×1.579 mm. The wheelbase is 2.950 mm. The E5 Sportback is available with RWD and 4WD options. Its peak power lies between 295 and 776 hp, depending on the trim level. 3 battery variants are available: 76, 83 and 100 kWh. The range of the E5 Sportback is 480 – 620 km. The car could be equipped with air suspension and cameras instead of side-view mirrors. Previously, legacy automaker dealerships in China complained about profitability issues. The recent price adjustments didn’t help dealers solve this problem. Therefore, the effectiveness of the recent discount on the AUDI E5 Sportback is also questionable. +++
+++ BMW is preparing to fit the M2 with four-wheel drive for the first time, bringing its smallest performance model into line with the M3, M4 and M5. The new M2 xDrive is set to be offered alongside the existing rear-wheel-drive M2 rather than replace it, giving buyers the choice between traditional RWD and the added security and traction of 4WD. Until now, the M2 has been the sole hold-out in the M car line-up, sticking with RWD and remaining the only model to offer a 6-speed manual gearbox. The 4WD system will be paired exclusively with BMW’s 8-speed automatic transmission. As in other recent M cars, it’s expected to feature a rear-biased calibration with selectable driving modes, including a setting that allows fully rear-driven operation. Further details remain under wraps, but indications suggest the M2 xDrive will retain the ‘S58′ twin-turbocharged 3.0-litre straight-six petrol engine, uprated from today’s 480 hp to somewhere closer to the 530 hp of the M2 CS. The increase is aimed at offsetting the additional mass brought on by front driveshafts and transfer hardware, likely pushing the M2’s kerb weight towards 1.800 kg. The extra traction is expected to bring a marked improvement in off-the-line performance, with 0-100 kph anticipated to dip below the 4.0 seconds mark. Production of the M2 xDrive is set to begin at BMW’s San Luis Potosí plant in Mexico by mid-year, ahead of UK launch during the second half of 2026. +++
+++ Chinese automaker BYD surpassed Ford in global vehicle sales (including passenger and commercial vehicles) for the first time in history last year. Ford announced that its sales last year decreased by 75.000 units from 4.470.000 units the previous year, totalling 4.395.000 units. In contrast, BYD previously reported that its sales last year increased by 330.000 units from the previous year, reaching approximately 4.6 million units. In the global vehicle sales rankings last year, BYD rose 1 spot to 6th place, while Ford fell 1 spot to 7th. Although Ford increased its sales in the U.S. market, its market share shrank in the Chinese and European markets. Particularly in China, affordable electric vehicle models from Chinese companies such as BYD, Xiaomi and Geely are dominating the domestic market. BYD recorded exports of 1.05 million units last year and aims to export 1.3 million units this year. According to Bloomberg, Toyota maintained its position as the global sales leader for the sixth consecutive year with 11.32 million units. It was followed by Volkswagen in second place with 8.98 million units, and Hyundai and Kia in third place with 7.28 million units. Chinese automaker Geely Auto (4.12 million units) jumped 2 spots to 8th place, surpassing Honda (3.52 million units) and Nissan (3.2 million units). +++
+++ Automakers from CHINA are rapidly encroaching on the European electric and hybrid vehicle market with aggressive pricing strategies. BYD and Chery Automobile, among others, recorded triple-digit sales growth in January alone, while global automakers including Hyundai and Kia saw their sales decline sharply. These companies are now preparing aggressive sales strategies this year to counter the Chinese onslaught, signalling the intensification of a “chicken game” in the electric vehicle sector. According to market research firm Dataforce, which analysed 98% of vehicle sales in the European Union (EU), the UK and the European Free Trade Association (EFTA: Switzerland, Norway, Iceland, Liechtenstein), Chinese automakers’ market share in this region reached 7.4% in January. This marks nearly double the 4.0% recorded in January of last year. Notably, this growth occurred despite an overall 3.6% year-on-year decline in total European market sales. BYD and Chery’s growth stood out. BYD sold 17.630 units, a 173% increase from the same period last year, while Chery sold 17.106 units, up 354%. Chery offers 4 brands in Europe, including Jaecoo and Omoda. Zhejiang Geely Group, though its overall sales fell 7.5% to 24.859 units, saw triple-digit growth across 3 of its 6 brands: Geely (384%), Lynk & Co (183.2%), and Zeekr (264.5%). Sales of Leapmotor, whose overseas distribution rights are held by Stellantis Group, surged 409%. In contrast, other global brands faced challenges. The Hyundai Motor Group sold 69.949 units in Europe in January, a 19.4% decrease from the same period last year. It has struggled particularly in the electric and hybrid segments, where Chinese automakers are gaining strength. Sales of Hyundai’s Ioniq 5 dropped 24.3%, while Kia’s EV3 (-39.1%) and Niro (-33.8%) also saw significant declines. Tesla, which sells only electric vehicles, reported a 16.7% year-on-year decline in January sales to 7.794 units. The Volkswagen Group, a European automotive leader, saw its January sales fall 4.2% to 252.962 units. The underperformance of its Volkswagen brand (-11.3%) dragged down the group’s overall sales, with its ID series electric models declining 19%. The surge in Chinese vehicle sales is driven by pricing strategies. Chinese brands are slashing prices to levels global automakers struggle to match. BYD sells its plug-in hybrid compact SUV, the Atto 3 Boost, in Germany for 22.990 euro, a 40% discount from its original price of 38.990 euros. This reflects a combination of BYD’s own subsidies (11.500 euros) and government incentives (4.500 euros). Industry analysts predict the price war sparked by Chinese automakers will persist. François Provost, Renault CEO, said on the 19th, “Price competition has intensified compared to three years ago, and it won’t ease”. Xavier Duchemin, head of Stellantis France, stated on the 28th of last month, “Stellantis will adopt a more aggressive sales strategy this year to recover sales”, announcing a 24% price cut for Opel’s Corsa base model to 15.900 euro. +++
++ The new Land Rover DEFENDER SPORT will arrive next year as both the smallest model and the first EV in the Defender line-up and the brand’s boss has promised it will be “class-leading in the attributes that make it a Defender”. The new model is being developed on a new electric platform by JLR and will be smaller than the current Defender 90. Defender brand director Mark Cameron told that work on the new model was “well advanced” but wouldn’t give a timescale for launch, or confirm if it would use the Sport name. Notably, the model will be the first entirely new product since Defender was turned from a Land Rover model line into a brand (along with Range Rover and Discovery) under JLR’s ‘House of Brands’ approach. It will also be the first in an expanded range of Defender products. Cameron said the 3 years since the new plan was announced have been spent developing new products and establishing what Defender stands for. He added: “Over the past couple of years, our design and engineering teams have created that red line, the circle that every Defender had to have. That’s the DNA”. The Defender is currently offered in 90, 110 and 130 bodystyles, along with the hot Octa variant and the commercial Hardtop. Cameron said the focus was on making Defender “a luxury lifestyle brand”, adding: “We’ve got a portfolio of one model with several variants, but I’m working seven to 10 years ahead to build out this whole brand portfolio. We’ve got to make sure everything we do as Defender has the DNA of the brand: epic built-to-last, go-anywhere capability”. The Defender Sport is an entirely new product rather than an attempt to create an electric equivalent of the current Defender 90; a decision driven by the design differences required by the use of a bespoke electric platform. Tipped to be just over 4.5 metres long, it sits on JLR’S EMA platform, which will underpin many of the company’s future EVs, including the Range Rover Evoque and Velar. The more premium-focused Range Rover and Defender will use the firm’s MLA platform, while Jaguar has developed its own bespoke EV architecture, named JEA. Using a platform with underfloor batteries creates “vehicle constraints”, said Cameron. He added: “The size of the vehicle and platform will probably reduce wheel travel and articulation compared with a current Defender”. But while that means the Defender Sport won’t offer the same level of off-road ability as the current Defender line, Cameron has vowed that it will still be designed to offer substantial off-road capability. “What matters to us is that a Defender has to be class-leading in the attributes that make it a Defender”, he said. That means it will retain four-wheel drive, suggesting a dual-motor set-up. Cameron said the emphasis on efficiency for EV design (vital to maximise range from the battery) created challenges “given the silhouette of what most people would know a Defender to be: very upright, sharp window angles, a bluff rear end”. He added: “The capability we have in our vehicles carries a penalty that works against you when you think about range for an EV. My job is to make sure we retain Defender’s DNA, otherwise we become another SUV brand and there are plenty of those”. Cameron said the firm is “well advanced” with development. He also noted that the firm had put a focus on “maintaining our test cycles”, rather than trying to chase a faster development cycle in order to keep up with Chinese rivals. “What has disrupted our industry hugely are shrunken test cycles due to some of the Chinese brands”, he said. “Their speed to market is just incredible. But we have always maintained that we need to have at least 2 winter test cycles and 2 hot weather test cycles for a Defender. We’re looking at ways to shrink our product development time, but we don’t want to compromise on quality and longevity and all the things you have to deliver as a luxury brand”. Cameron also indicated that JLR has put a focus on where it can best add value, saying: “As a business we’re looking at where do we partner, and where do we build in-house, You’ve got to work out your core competencies. If you look at the EV world, the actual battery pack and the electric drive units have, to some extent, become commodities. Do they give us the torque characteristic and off-road drivability that Defender has to have? Those are big decisions: the quickest way to market is to buy all that in, but that’s not necessarily the right answer for Defender”. Cameron wouldn’t be drawn on specific product plans beyond the brand’s first EV, but when asked how big a potential Defender line-up could become, he said: “Huge”. That is likely to include multiple powertrain options given what Cameron called “the complexity of EV adoption”, which results in the level of customer demand lagging behind the expectation of legislators. That’s a challenge given Defender’s global footprint: a majority of its UK sales are currently diesel, while its biggest market is now the US, where electrification is firmly on the back burner. “Our strategy is to offer as much choice for as long as we can”, said Cameron. “Clearly with the Defender, because of the capabilities, toughness, the weight and the geometry of it, as long as we can keep selling petrol and diesel with hybridisation and other forms of interim technology, we’ll continue to do so”. The Defender is currently offered with a plug-in hybrid powertrain, but that is built around a 4-cylinder engine and has a limited electric range, because the D7 platform wasn’t designed for the technology. Cameron hinted that would change in time, saying: “We’re going to be relying on future generations and different architectures to expand those sorts of technologies”. Notably, Cameron said Defender’s growing international focus could Influence its line-up: “Beyond the UK, there are vehicle types that are absolutely suitable for Defender in certain geographies. The US is now our biggest market, and there are product categories popular there we can absolutely bring Defender into”. That suggests a revival of previous plans to develop a Defender pick-up given the size of that market in the US, although Cameron wouldn’t expand on specifics. But he noted that growth could also come at the other end of the range, because “in Europe they need small cars for tight streets”. He added: “The red line we’ve got to draw is that any future versions of Defender still have to have the same characteristics that every Defender needs. There’s no reason you can’t go smaller, bigger, longer, higher and still cover those bases. “The biggest challenge is that we don’t want to be all things to all people, so we’ve got to work out where to focus, and it’s not about volume for us. It’s about building a good, profitable, margin-led business and satisfying customer needs in segments and markets that don’t exist today. If you look at JLR as a business, we’ve always been at our best when we create segments. Range Rover is a great example. The Evoque was a great example. Defender today is a good example: it reimagined the rugged SUV segment. So we’re going to look carefully at those white spaces in the market where we can credibly have a Defender product. But we won’t copy something just to chase volume, because that’s not what our business plan is”. +++
+++ MG appears to be expanding its sedan line-up with a new model that could be named 07. Despite sharing some design philosophy with the current 7, sources indicate this vehicle is built on an entirely new architecture. The prototype features a substantial front fascia with a prominent grille. Notably, the test vehicle is equipped with a roof-mounted LiDAR sensor, suggesting advanced driver assistance capabilities will be available. From a profile view, the sedan showcases an extended silhouette with what appears to be a generous wheelbase. Semi-concealed door handles are equipped, while the rear adopts a fastback design. The taillights appear to span the width of the vehicle, though the test mule is still fitted with provisional lighting units rather than production-ready components. Interior spy shots reveal a driver-focused cockpit with a sporty steering wheel design similar to that found in the new MG 4. A floating centre touchscreen dominates the dashboard, likely running Oppo’s smart vehicle connectivity system. The centre console features a shift-by-wire gear selector, wireless charging pad, and practical storage solutions while maintaining some physical controls. The rear passenger compartment offers generous legroom thanks to a flat floor design. The presence of both a charging port and a fuel filler cap on opposite sides of the vehicle indicates this will be offered as a hybrid model. Further technical specifications remain undisclosed at this time. The new model is expected to maintain MG’s fastback opening system for the rear hatch, combining sedan styling with practical cargo access. As development continues, more details should emerge regarding this addition to MG’s growing global line-up. +++
+++ In SOUTH KOREA , the respective rates of new passenger car purchases by customers in their 20s and 30s fell to their lowest levels in a decade last year, industry data showed Monday. According to the data from auto industry data tracker Carisyou, new car registrations among people in their 20s totaled 61.962 in 2025, accounting for 5.6 percent of all new cars registered last year. The share of new car registrations by those in their 20s stood at 8.8 percent in 2016 but has declined steadily over the past years, falling to the lowest level in 10 years in 2025. The number of new car registrations for those in their 30s totalled 209.749 last year, accounting for 19 percent of the total. The rate has dropped 6.9 percentage points over the past decade, also to the lowest in 10 years. In contrast, purchases among older age groups have steadily increased. People in their 60s registered 204.294 new passenger cars last year, accounting for 18.5 percent, while those in their 70s registered 50.861 units, or 4.6 percent. Industry observers cited rising cost burdens and the spread of car rental services through mobile apps as key factors behind the decline in new car purchases among younger consumers. “People in their 20s and 30s tend to not feel the need to own a car as much due to the expansion of the online-based car-sharing culture”, said Kim Pil-soo, an automotive professor at Daelim University. “Meanwhile, more people in their 60s and 70s are entering the job market, and some purchase vehicles to secure mobility”, he added. +++
+++ Last year, the number of electric vehicle (EV) sales in the UNITED STATES experienced its first year-on-year decline in the past decade, according to analysis. This is attributed to the expiration of tax credits and other factors. On the 17th, market research firm Automotive reported that EV sales in the U.S. last year totalled 1.275.714 units, accounting for 8% of all vehicle sales in the country. Last year’s EV sales figure represents a roughly 2% decrease from the 1.301.441 units sold in 2024, the previous year. Automotive News and other outlets cited this figure, noting that it marked the first time in the past decade that U.S. EV sales declined year-on-year. Foreign media attributed the drop in EV sales to the expiration of a federal tax credit that provided up to $7.500 to consumers purchasing EVs, which ended on September 30 of last year. Despite the decline, selling over 1.2 million units was still regarded as a respectable performance. In brand-specific EV sales rankings, Tesla topped the list with 589.160 units sold. The best-selling model was the Model Y. The Hyundai Motor Group ranked second, selling a combined 99.553 units across Hyundai and Kia. Hyundai sold 65.717 units, including the Ioniq 5, while Kia sold 33.836 units, including the EV9. As individual brands, Hyundai and Kia placed third and eighth, respectively. Following closely, Chevrolet ranked third with 96.951 units sold. Cadillac followed in fourth place with 49.152 units, BMW in fifth with 42.483 units and Rivian in sixth with 42.098 units. +++
+++ XIAOMI ’s Vision Gran Turismo (GT) 2-door supercar (concept car) has made its debut at MWC Barcelona. PS5 players will be able to experience it in the Gran Turismo 7 game. Last June, Kazunori Yamauchi, the producer of Gran Turismo, personally experienced a Xiaomi car, and this led to a collaboration between the 2 companies. At that time, Xiaomi announced that its SU7 Ultra had officially joined the Gran Turismo 7 game, making it the first mass-produced Chinese brand vehicle to be included in the series of racing games. Regarding the design concept, Xiaomi’s chief designer, Li Tianyuan, shared that “Our philosophy is to achieve aerodynamic goals without relying on additional components. This philosophy requires us to adhere to the principle of ‘less is more,’ meaning that almost every design element must possess aerodynamic functionality”. Ahead of the debut, the Xiaomi Vision Gran Turismo concept car was spotted at MWC 2026 setup in Barcelona, Spain. The notable components include the front splitter fascia, T-shaped headlights, scissor doors, open wheelhouse, center fin, and an exaggerated diffuser shape combined with Xiaomi’s C-shaped taillights. Inside, the cabin features a butterfly-shaped steering wheel, a panoramic display screen, and “cacoon shaped sofa”. This concept car debut is seen as a key move by Xiaomi Auto to penetrate the global high-performance car market and advance its European expansion strategy. Lei Jun, CEO of Xiaomi, has previously revealed that Xiaomi Auto plans to launch overseas in 2027. According to reports, multiple sources indicated that in late 2025, Xiaomi Group’s international division established an overseas sales preparation team, which was recruiting for positions such as market research, project management and electric vehicle after-sales engineers. Last month, Lei Jun also announced that Xiaomi plans to increase the number of its stores in the UK market to 150 within the next 4 years. Last year, Zeng Xuezhong, president of Xiaomi’s international business department, stated that Xiaomi plans to open 10.000 Xiaomi Home stores overseas within the next five years. +++
