Tag Archives: EVs

News

Europe vs. China, Round Two: This Time It’s About EV Prices

For a brief moment, it looked like the European Union and China might be done trading punches over electric cars. This week, both sides announced they’ve agreed on steps to defuse their simmering dispute over Chinese EV imports—steps that sound cooperative on paper but leave plenty of sharp edges in practice.

The headline is this: instead of simply slugging Chinese-made electric vehicles with tariffs as high as 35.3 percent, the EU is preparing guidelines for minimum import prices. In theory, those price floors are meant to neutralize the effect of Chinese government subsidies without slamming the door entirely on affordable EVs. In reality, it’s a complex compromise that raises as many questions as it answers—starting with whether those tariffs actually go away.

So far, no one’s saying.

China’s Ministry of Commerce framed the agreement in grand terms, calling it a win for “the healthy development of China-Europe economic and trade relations” and for the rules-based global trade order. That’s diplomatic code for please stop escalating this. From Brussels, the message is more procedural: manufacturers can submit price undertakings, the European Commission will review them “objectively and fairly,” and everything will—supposedly—align with World Trade Organization rules.

If that sounds bureaucratic, it’s because it is. The EU’s own guidance acknowledges that today’s EV market is wildly diverse, meaning a one-size-fits-all minimum price won’t work. Instead, model-specific thresholds would be set at levels “adequate to eliminate the harmful effects of subsidies.” Translation: cheap Chinese EVs can still come in, but not too cheap.

This entire standoff exists because Chinese automakers have gotten very good—very fast—at building electric cars that undercut European rivals on price. Brussels argues that this advantage isn’t purely about efficiency or scale, but about state support. The list of alleged incentives is long and familiar: low-interest loans from state banks, discounted land for factories, tax breaks, subsidized materials, and guaranteed demand via state fleet purchases. Stack all that together, and you get EVs that arrive in Europe with price tags legacy automakers can’t easily match.

The U.S. response to the same phenomenon was blunt-force: a 100 percent tariff that effectively walls off the American market from Chinese EVs. Europe can’t afford to be that absolutist. The EU has legally binding climate targets—cutting greenhouse-gas emissions by 55 percent by 2030—and hitting those numbers requires lots of electric cars, including affordable ones. Blocking Chinese imports entirely would make that transition slower, pricier, and politically messier.

And here’s the twist that often gets lost in the rhetoric: a significant chunk of “Chinese” EV imports into Europe aren’t from Chinese brands at all. The value of battery-electric cars imported into Europe jumped from $1.6 billion in 2020 to $11.5 billion in 2023, and much of that volume comes from Western automakers building cars in China. Tesla and BMW both ship China-built EVs to Europe, which means trade barriers can boomerang back onto Europe’s own champions.

Despite the tariffs already in place, Chinese brands keep gaining ground. In the first half of 2025, Chinese-made vehicles accounted for 6 percent of total EU car sales, up from 5 percent a year earlier, according to ACEA and S&P Global Mobility. That may not sound seismic, but in a mature market like Europe, a one-point gain in a single year is significant. EU-based manufacturers still dominate with a 74 percent share, and Germany remains the production heavyweight, but the trajectory is what worries policymakers.

Consultants at AlixPartners estimate that by 2030, Chinese automakers could double their European market share to around 10 percent. That’s not an existential takeover—but it’s enough to pressure margins, accelerate price wars, and force faster innovation from incumbents.

So where does this “agreement” actually leave us? Somewhere in the gray zone between protectionism and pragmatism. Minimum price rules may blunt the sharpest edge of China’s cost advantage without fully choking off supply. They also buy time—time for European automakers to get their next-generation EVs out the door, and for Brussels to avoid a full-scale trade war it can’t really win.

In the end, this isn’t about tariffs versus free trade. It’s about control. Europe wants cheaper EVs, but on its own terms. China wants access to a massive market, but without being labeled the villain of the global energy transition. For now, both sides are pretending that carefully worded guidelines can square that circle.

Whether that truce holds once real cars—and real price tags—hit European showrooms is another story entirely.

Source: ACEA, AlixPartners

News

BMW Cuts EV Prices in China, Including a $42K Drop on the i7 M70L

Price wars used to be something Chinese automakers did to Western brands. Now, they’re something legacy automakers are doing with them.

BMW is the latest to blink in China’s increasingly cutthroat auto market, announcing sweeping price reductions across 31 models. It’s a notable move for a brand that traditionally leans on prestige and pricing discipline—and a clear sign that even the blue-and-white roundel isn’t immune to the pressures of the world’s largest car market.

The headline grabber is the BMW i7 M70L, the long-wheelbase, dual-motor flagship of the electric 7-Series lineup. Packing 659 horsepower and a neck-snapping 811 lb-ft of torque, it now costs 301,000 yuan less than before—a haircut of roughly $42,000. That’s not a gentle nudge. That’s a shove.

The deepest cut by percentage, however, belongs to the iX1 eDrive25L. BMW trimmed 24 percent off the price of the long-wheelbase compact SUV, dropping its entry point to 228,000 yuan (about $32,600). In a segment flooded with aggressively priced domestic EVs, the iX1 suddenly looks far more competitive than its badge alone would have allowed.

Officially, BMW is playing it cool. Speaking to Bloomberg, the company framed the changes as part of its “regular price management,” noting that transaction prices are ultimately negotiated between dealers and buyers. That’s corporate-speak for don’t read too much into this.

But the timing tells a different story.

China’s auto market has shown clear signs of strain, with sales declining for a second consecutive month in November, according to the China Passenger Car Association. As growth slows, automakers—foreign and domestic alike—are scrambling to protect volume, even if it means trimming margins.

At the same time, regulators are trying to keep the chaos contained. New rules prohibit automakers from selling below production cost and ban dealer incentives that push prices beneath that line, an attempt to prevent a full-blown race to the bottom.

In that context, BMW’s price cuts look less like aggressive discounting and more like a formal acknowledgment of reality. According to Yale Zhang, managing director at Automotive Foresight, the revised stickers largely reflect what customers were already paying after negotiations. In other words, BMW didn’t undercut the market—it caught up to it.

And this likely isn’t the end.

With Chinese New Year landing in February, the industry’s traditional incentive season is fast approaching. At least 14 automakers have already launched discount or incentive programs since the start of 2026, and more are expected to follow as brands try to front-load first-quarter sales.

Zhang doesn’t see the trend fading anytime soon. Promotional cycles may fluctuate, he says, but sustained pricing pressure is now a structural feature of the Chinese market—not a temporary hiccup.

Regulators remain wary. Prolonged discounting raises the specter of deflation, supply-chain instability, and downward pressure on wages—risks that extend far beyond the showroom floor.

For BMW, though, the message is clear: in China, prestige alone no longer sells cars. Even the ultimate driving machine has to sharpen its pencil.

Source: BMW

NEW CARS

Toyota Electrifies the Hilux While Keeping Its Work-Truck Roots

The Toyota Hilux has survived just about everything short of atmospheric reentry. It’s slogged through floods, clawed its way out of mud pits, and famously endured being dropped from a Top Gear crane—though, notably, not from a helicopter. Now Toyota is testing the Hilux with a far more existential challenge: staying relevant in a future where diesel is no longer king.

At this week’s Brussels Motor Show, Toyota unveiled the Euro-spec ninth-generation Hilux in two new flavors: a mild-hybrid diesel and the first-ever fully electric Hilux BEV. Both trucks debuted earlier in Asia, but their arrival in Europe signals something bigger. This isn’t just an update—it’s Toyota hedging its bets.

One Truck, Many Futures

Toyota calls it a “multipath strategy,” which is corporate shorthand for “we’re not betting everything on one powertrain.” And for many Hilux buyers, that means business as usual. The familiar 2.8-liter four-cylinder diesel lives on, now paired with a 48-volt mild-hybrid system. Output remains 201 horsepower (204 PS), and the truck retains its crucial stats: a 2,205-pound payload and a 7,720-pound tow rating.

In the UK and most of Europe, Toyota expects this mild-hybrid diesel to be the volume seller—even after the EV arrives. It’s smoother and slightly cleaner than before, but more importantly, it doesn’t ask loyal Hilux owners to rethink how they work.

Some markets will even get a non-hybrid diesel, proving that Toyota still understands where the Hilux earns its living.

The Electric Hilux: Tough, but Compromised

The real headline, of course, is the Hilux BEV. Powered by a 59.2-kWh battery and dual motors—one on each axle—it delivers permanent all-wheel drive and instant electric torque. The front motor produces 151 lb-ft of torque, while the rear contributes 198 lb-ft.

Range is quoted at 160 miles on the WLTP cycle, which sounds underwhelming until you realize this is a ladder-frame pickup, not a sleek crossover. In urban use, Toyota claims up to 236 miles, which makes the BEV Hilux plausible for city-based fleets and short-haul work.

There are trade-offs. Payload drops to 1,580 pounds, and towing capacity falls sharply to 3,530 pounds. That’s a big hit for traditional truck buyers, but Toyota is clearly aiming the electric Hilux at businesses focused on emissions, taxes, and running costs—not livestock trailers.

Crucially, the fundamentals remain intact. The BEV keeps the body-on-frame construction, 8.4 inches of ground clearance, and a genuinely impressive 27.6 inches of wading depth. There’s even a dedicated off-road drive mode tuned specifically for electric torque delivery and regenerative braking.

Not Just Electric—Hydrogen Is Coming Too

If that weren’t enough, Toyota has also confirmed that a hydrogen fuel-cell Hilux is in development—and already being tested publicly. Yes, the same truck once known for hauling bricks and sheep may soon carry a fuel-cell stack. Whether hydrogen pickups make sense at scale is still an open question, but Toyota clearly intends the Hilux to outlast whatever powertrain trends come and go.

Cyber Sumo Styling and a Modern Cabin

Both the mild-hybrid and BEV versions wear Toyota’s new “Cyber Sumo” design, reportedly developed by the brand’s Australian team. It’s more angular, flatter, and bolder than before, giving the Hilux a tougher, more modern presence—though not everyone will love the look.

The EV stands out with a blanked-off grille and a subtly redesigned silver bumper insert, but otherwise the two trucks are visually similar.

Inside the crew-cab-only cabin, the Hilux finally catches up to modern expectations. A 12.3-inch digital instrument cluster sits alongside a matching touchscreen, and the steering wheel comes straight from the new Land Cruiser. There’s smart storage, dashboard-mounted cupholders, and a full suite of safety tech—balanced, refreshingly, by plenty of physical buttons for things you actually use while wearing gloves.

When Can You Buy One?

UK sales begin in June, with prices expected to land in the coming months. Toyota has already hinted they’ll be higher than the outgoing model, which should surprise exactly no one.

Still, the bigger story isn’t the price—it’s longevity. By offering diesel, mild-hybrid, battery-electric, and eventually hydrogen power, Toyota is making sure the Hilux doesn’t just survive the electric transition. It adapts.

And if history tells us anything, betting against a Hilux is rarely a smart move.

Source: Toyota