Tag Archives: China

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FAW-Volkswagen’s First Export Models Head to the Middle East

China’s FAW-Volkswagen joint venture is stepping onto the global stage with its first series-production vehicles destined for export. A total of 554 sedans—split between the Magotan and Sagitar nameplates—are set to ship to the Middle East, marking a milestone for the three-decade-old partnership between Volkswagen Group and FAW.

The move underscores the venture’s ambition to compete beyond its home turf. While both sedans share VW DNA, the Magotan is the headliner: essentially the latest-generation Passat as sold in Europe, stretched and tailored for Chinese buyers. The Sagitar, meanwhile, plays the compact role, a close cousin to the Jetta. When sales begin this November, the cars may even shed their Chinese-market names and be badged as Passat and Jetta—though FAW-Volkswagen hasn’t confirmed the branding strategy yet.

Exports won’t stop there. The company says models under its China-only Jetta sub-brand are also being prepared for overseas markets, with Central Asia first in line. Details on powertrains remain under wraps, including whether these exported models will continue using Chinese-spec engines or be fitted with drivetrains more familiar to international buyers.

Chen Bin, CEO of FAW-Volkswagen, frames this export push as central to the company’s growth strategy. “We aim to become a leading exporter among Sino-foreign joint ventures,” he said, pointing to a long-term plan of expanding reach well beyond China’s borders.

FAW-Volkswagen has been around since 1991, producing Audi, Volkswagen, and Jetta models out of five major hubs—Changchun, Foshan, Chengdu, Qingdao, and Tianjin. Until now, those cars were aimed squarely at Chinese buyers. With this first batch of Magotans and Sagitars bound for Middle Eastern showrooms, the venture is testing whether its China-built Volkswagens can stand up on the global stage.

Source: Reuters

News

Leapmotor Takes the Crown: China’s EV Challenger Tops Startup Sales in August 2025

Leapmotor just put the rest of China’s EV startups on notice. In August 2025, the Hangzhou-based automaker delivered 57,066 vehicles, a record-breaking monthly performance that pushed it firmly into the No. 1 spot among new energy vehicle (NEV) startups. That figure represents a 13.8 percent jump compared with July—and more importantly, it cements Leapmotor’s leadership in one of the most cutthroat car markets on the planet.

Year-to-date, Leapmotor has already moved 328,859 units, more than doubling last year’s pace with a staggering 136.43 percent increase. For a brand that just a few years ago was considered an underdog to names like NIO, XPeng, and Li Auto, the turnaround is remarkable. What’s driving the surge? A mix of sharp product positioning, disciplined execution, and one SUV that’s quickly becoming its breakout hit.

B10: The SUV That Changed the Game

Launched in April 2025, the Leapmotor B10 SUV has become the company’s sales powerhouse, racking up over 50,000 deliveries in just a few months. Billed as a “global intelligent long-range SUV,” the B10 pairs family-friendly dimensions with a tech-heavy cabin, long-range battery options, and pricing that undercuts many of its rivals.

The B10 is also Leapmotor’s ticket to the global stage. The first batch of exports has already shipped to Europe aboard a brand-new Grimaldi vessel, with distribution set to reach over 20 countries and regions by the end of the year. Starting in September, European customers will find the B10 in showrooms with a headline base price of €29,900—a figure that’s likely to raise eyebrows among legacy automakers and startup competitors alike.

Winning Formula

Leapmotor’s rise isn’t a one-off sales fluke. The company has consistently led NEV startups throughout 2025, topping both monthly and cumulative sales charts. Its formula isn’t revolutionary—solid product cadence, competitive pricing, and a pragmatic marketing strategy—but the execution has been razor sharp.

Unlike some rivals who’ve leaned heavily on hype or niche models, Leapmotor has focused on breadth and dependability, building a broad product portfolio and backing it with robust supply chain management. The payoff is clear: sustainable growth and consumer trust in a segment where loyalty is notoriously fickle.

What’s Next?

With China’s NEV market expected to keep expanding and Europe warming to affordable EVs, Leapmotor’s momentum shows no signs of slowing down. The real question is how long it can hold its lead against fierce domestic rivals and global brands eyeing the same space.

For now, August 2025 belongs to Leapmotor—and the B10 looks poised to become the company’s passport to true global recognition.

Source: Stellantis

News

The Hybrid Trojan Horse: How China’s Carmakers Are Outsmarting Europe

Europe thought it had built a wall. A big, tariff-shaped fortress designed to keep the advancing army of Chinese EVs from storming the castle of Volkswagen, Peugeot, and Fiat. Since October 2024, Brussels has been slapping chunky import duties on electric cars from the People’s Republic—up to a wallet-clenching 45 percent in some cases. The idea? Protect Europe’s car industry from Beijing-backed brands flooding the market with cut-price EVs.

But here’s the problem: the Chinese didn’t bother with the front gate. They’ve found a side door—marked Hybrids.

See, plug-in hybrids (PHEVs) sit in a cushy grey area of EU tariffs. Instead of being battered with 27 or even 45 percent duties, they get a far friendlier 10 percent. For buyers, that can be the difference between “Ooh, that’s cheap” and “Sorry, darling, we’ll just buy a Golf.” For Chinese manufacturers, it’s basically the difference between a profitable invasion and a money-burning retreat.

Take BYD, for instance—the battery giant turned carmaker that’s been gleefully gnawing away at Tesla’s lunch. Its Atto 3 EV in Germany suddenly costs an extra €10,000 thanks to the tariffs, which moves it from “shrewd bargain” to “well, maybe I’ll just buy a Kia.” Meanwhile, the plug-in hybrid Seal U? Only slapped with about €4,000 in extra duties. Result: BYD’s PHEV registrations in Europe tripled in just six months, with 20,000 units already on the books.

MG, the once-British badge now operated by China’s SAIC, has gone the same route. Faced with an eye-watering 45.3 percent tariff on its EVs, it’s quietly pivoted to hybrids. Sales of the MG HS, ZS, and MG 3 are up, while its EVs have fallen off a cliff—down 60 percent in just half a year. And then there’s Lynk & Co, the “hipster” Geely-owned brand that hands out cars on a subscription basis. Yep, they’re stuffing as many PHEVs onto boats to Antwerp as humanly possible too.

“It was only a matter of time,” says Beatrix Keim, a German car industry insider. She’s right. You don’t need to be Sun Tzu to see that when one battlefield is hostile, you retreat and attack from another angle. The EU tariffs are a blunt instrument, and the Chinese are already adapting faster than Europe’s regulators can type out a press release.

The most delicious irony? Brussels knows all this. It’s not even pretending hybrids aren’t a loophole—it just seems happy to look the other way. Officials are apparently banking on future negotiations with China’s hyper-aggressive automakers rather than tightening the screws. Which means, in the meantime, European streets will keep filling up with cheap Chinese PHEVs, while local brands fumble around trying to reinvent the compact hatchback.

So, has the EU bought itself some breathing room? Perhaps. But if history has taught us anything, it’s this: when the Chinese can’t get through the front door, they’ll climb in through the window. And right now, that window is the hybrid.

Source: Handelsblatt