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While Australian sales of Chinese vehicles continue to grow at a staggering rate it looks like the country’s car industry, including the world’s largest EV manufacturer BYD, has hit a nasty speed bump due to a perfect storm of challenging market conditions.According to data from the Chinese Passenger Car Association (CPCA) and China Association of Automobile Manufacturers (CAAM), 2025 was a year of solid growth for domestic production which saw total output rise to 34.5 million units, a 9.4 per cent year-on-year increase over 2024.And similarly, exports rose to a record 7.1 million vehicles (up 21.1 per cent yoy) confirming China as the world's largest automobile exporter.But due to multiple factors including regulatory changes, reduced demand and volatile trade conditions, January numbers told a markedly different story.As of January 1, 2026 the Chinese Government revised incentives designed to encourage EV uptake and introduced a five per cent purchase tax on ‘New Energy Vehicles’ (EV and hybrid) which were previously exempt.In 2025 a maximum ¥15,000 (~$3065) subsidy was available to all new EV buyers. But now only cars with a retail value above ¥187,500 (~$38,300) qualify.At the same time, the CAAM said slowing economic growth in China has put pressure on wages, which combined with rising unemployment, has dampened demand for new cars.The government has also moved to eradicate export of ‘zombie cars’ - new, zero km vehicles road registered to qualify as ‘used’, a move likely to create a medium-term glut of new-car inventory.And of course, an all-out trade war with the United States has not only contributed to China’s economic slowdown but effectively cut-off access to one of the world’s biggest car markets.According to China Automotive News, in January China’s new vehicle production dropped 3.2 per cent year on year to below 2.35 million units, with sales down 13.9 per cent.BYD domestic sales fell off a cliff, down 53 per cent to 110,000 units, with other big players also taking a backwards step, including Geely (-13 per cent), Changan (-33 per cent) and Chery (-40 per cent).But conversely, exports were up substantially compared to January, 2025.CPCA data show Chinese vehicle exports rose to 576,000 units (+52 per cent) with close to half being NEVs, that proportion up 13 per cent year-on-year.In terms of an annual outlook, the CPCA predicts domestic sales will grow one per cent in 2026 (down from 9.4 per cent growth in 2025) with vehicle exports growing 4.3 percent, compared to 21.1 per cent last year.  Time will tell whether these predictions become reality, but for now, the only way seems to be up for BYD and Chery in particular, in Australia. With 2025 new-model additions including the Shark 6 ute, city-sized Atto 1 electric hatch and compact Atto 2 EV SUV, as well as the larger pure-electric Sealion 7 and plug-in hybrid Sealion 8 SUVs, BYD’s year-on-year sales for the month of January grew by a spectacular 640.9 per cent.At the same time, Chery more than doubled its January sales (+105.8 per cent), largely thanks to the ongoing success of its Tiggo 4 which comfortably led the small SUV category.

Chery is going to shake up stale and uninteresting competitors in Australia.Chery Australia Chief Operating Officer Lucas Harris has revealed some of the cars on his wish list for Down Under, and the fast-rising Chinese brand has some of the biggest names in the business in its sights.“I think having a very small and then a small hatchback would be a game changer,” said Harris.“I think there’s a huge amount of potential in those segments, and at the moment I think those segments are a little bit stale and not that interesting.“So if we could bring something like the QQ, I think it’d be a huge amount of opportunity,” he said.That opens the door to two new cheap small cars from Chery’s city-focused QQ range.The very small hatch could refer to the QQ Domi, which was revealed last year.It is a pint-sized electric hatchback measuring just 3.7m long and 1.7m wide, which is just bigger than a Kia Picanto but smaller than a Suzuki Swift.It’s nearest EV competitor would be the larger BYD Atto 1, which is called Seagull in other markets.In China it launched at the equivalent of about $13,000. Chinese cars are usually 20 per cent more expensive here than the home market, which would mean it could lob in at about $16,000. That would make it not only Australia’s cheapest electric car, but the cheapest car overall.It has modest numbers to match its low price tag, with a single electric motor making 40kW and 110Nm sent to the front wheels. A little 28.5kWh lithium iron phosphate (LFP) battery, which is about the same size as found in plug-in hybrids, delivers a claimed driving range of up to 305km, according to the very generous China Light-duty Test Cycle (CLTC).Next up would likely be the bigger QQ3, which just opened for preorders in China.It measures 4195mm long ,1811mm wide and 1573mm tall, which puts it in the same ballpark as the Geely EX2 and slightly smaller than the BYD Dolphin.Power comes from a single rear-mounted electric motor making either 58kW or 90kW, which drives the rear wheels.At its core is a LFP battery that provides a driving range between 280km and 401km, depending on the grade. That is calculated via the lenient CLTC testing regime, so expect much less in the real world.It would likely be priced sub-$30,000 if it arrives Down Under.Chery also has one of the biggest names in the business in its flights, with the Toyota Camry officially put on notice.“And we also have some really great medium and large sedans in other markets — left-hand drive — which I think that sort of size in between medium and large sedans is a real opportunity in Australia as well,” said Harris.“There’s only really one serious competitor, and they don’t have much competition. They kind of own the whole market. So I think there is certainly a lot of opportunity there as well.”Chery will need to play in a lot more segments over the next few years if it wants to crack the top 10 and future top five sellers list in Australia.

BYD has given its fully-electric Atto 3 small SUV a massive overhaul with a larger battery, faster charging, more power and a switch from front- to rear-wheel drive.There is a catch - this Atto 3 is only available in the United Kingdom, for now. But the good news is with the UK being a right-hand drive market, it's very likely the same vehicle will be sold in Australia, possibly soon.The overhaul is much needed for the Atto3 which was BYD’s first vehicle to go on sale in Australia when the brand arrived here in 2022.Until now the UK and Australia have had the same Atto 3 - a front-wheel drive-only SUV with a single 150kW motor, and a driving range of up to 480km (WLTP) from the larger 60.48kWh battery variant. But the new Atto 3 in the UK - dubbed the Evo - has been hugely improved.For starters battery capacity has been upped to 74.8kWh for a range of up to 510km and its electrical architecture beefed up from 400V to 800V allowing 220kW fast charging and 10-80 per cent refilling in 25 minutes.Another welcome change is the switch from front-wheel drive to rear-wheel drive with a more powerful 227kW motor improving 0-100km/h acceleration time from 7.3 to 5.5 seconds. A two-motor all-wheel drive variant with 325kW is also available in the UK. The bump in grunt takes the Atto 3 into seriously quick hot hatch territory, outgunning rivals such as the Kia EV3, Geely EX5 and MG S5.The new configuration also allowed BYD to make changes to the Atto 3’s multi-link rear suspension for better handling, upgrading it from a four- to five-link arrangement.The new BYD Atto 3 in the UK now has a bigger 490-litre boot - up 50 litres and it's scored a 101-litre front boot. Interior changes include the repositioning of the Atto 3’s gear selector from the centre console to the steering column.CarsGuide has contacted BYD Australia to ascertain if and when the updated Atto 3 will come to Australia.Since the Atto 3’s local launch in 2022 BYD has rapidly rolled out nine more models including the Shark 6 ute and Sealion 7 large SUV, those two by far the most popular in the brand's range.  

Kia will launch six EVs across 2026 as the Korean brand builds an all-electric lineup to rival Chinese brands such as BYD.The move forms part of Kia's incremental growth strategy for 2026, with the New Vehicle Efficiency Standard (or NVES) unlocking niche electric vehicles that would normally be locked out of the Australian market. That includes the just-launched Kia EV4 Sedan, for which the brand is forecasting 700 annual sales – a number significantly lower than would be expected from the brand's bigger EV sellers, but which will critically still contribute to its fleet emissions under the new regulations.But the EV4 Sedan is just the start of Kia's EV story in 2026, with another five models planned for launch before the end of the year.First up will be a mid-life facelift for the EV6, including the EV6 GT, which will nab a bigger battery for more driving range, and across-the-board access to the Kia Connect app for remote vehicle access.Previously, the EV6 and EV6 GT launches were staggered, but this time all will arrive at once before the end of Q1 this year."They will arrive all together. Previously we started with the EV6 and then the GT, but this time it will be all at once," says Roland Rivero, General Manager of Product Planning at Kia Australia."The Kia Connect system is something that our owners have been asking for."That story then continues with the fire-breathing EV9 GT, which will lend serious performance to the brand's biggest electric offering, with the GT variant sporting dual electric motors that produce a combined 374kW and 740Nm. That means the 2.6-tonne beast will clip 100km/h in an astonishing 4.5 seconds. Other fun stuff includes an electronically-controlled limited slip differential, adaptive suspension, performance brakes and simulated gear shifts, a bit like you'd find in the Hyundai Ioniq 5 N.Next is the PV5, Kia's funky-looking electric van, which will arrive in Q2. The cargo variant will be first to arrive, with the medium van offered with three battery sizes and a working range in excess of 400kms. It will be followed by the passenger version – offered with two battery choices – which will arrive later."It gets a passenger variant with seven seats towards the back end of the year," Mr Rivero says. Finally, and also towards the end of the year, the EV5 will get its first update, though details are scarce for now. Also coming in 2026, though not strictly an EV, is the third-generation Kia Seltos, this time with a hybrid.And all of this, says Kia, will grow the brand's share in an otherwise stable market."In regards to 2026, it's our intention to grow. Where do we get market share? It will be what we've done over the past decade, we'll be gouging market share from anyone we possibly can," says Kia Australia CEO, Damien Meredith.

Hyundai hasn’t even revealed the small Ioniq 3 yet, but the South Korean carmaker appears to be working on something even tinier.As reported by Chinese publication Autohome via Indian forum site Team-BHP.com, a camouflaged prototype of what is tentatively being called the Hyundai Ioniq 1 has been spied in India.It has a boxy SUV silhouette, a split headlight set-up with Hyundai’s ‘Parametic Pixel’ daytime running light (DRL) motif and an illuminated brand logo, flush door handles, plus a virtually non-existent rear overhang.It appears this forthcoming vehicle will be less than 4.0 metres long and could be aimed at developing markets, like India. Vehicles under 4.0 metres long receive tax breaks in India as they have a smaller footprint and are generally more fuel efficient than larger cars.Autohome speculates production of the Ioniq 1 could be based in India, though it’s unclear whether export markets are on the cards.No details on the electric powertrain or the platform have been detailed yet.Once the Hyundai Ioniq 1 does go on sale it will go up against the likes of the Mahindra XUV3XO EV, plus the Tata Nexon EV and speculated Suzuki Fronx EV in India.It’ll also likely form as an electric counterpart to the Venue small SUV which was recently launched in new-generation guise in India.Autohome speculates the Ioniq 1 could also be offered in markets outside of India. If this is the case, Europe would be a likely candidate as a number of tiny, entry-level electric vehicles (EVs) are popping up from many carmakers.However if the Ioniq 1 is exported to other markets, like Australia, it would likely be more of a budget alternative to the Korean-made Inster. It would also go up against the likes of the BYD Atto 2, GWM Ora 5 and the Leapmotor B10.It’s expected the reveal of the Ioniq 1 will follow after the Ioniq 3, which is being unveiled in April.As previously reported, the Ioniq 3, as previewed by the 2025 Concept Three, will likely adopt a fastback-style hatchback look. It’ll likely almost be a new and electric take on the Veloster hatchback.It’s likely to be built on a version of the Hyundai E-GMP platform like the larger Ioniq 5, Ioniq 6 and Ioniq 9.

If documents recently lodged with the United States Patent & Trademark office are any indication, Tesla’s second-generation Roadster could be closer to production reality than thousands of ‘ludicrously’ patient deposit holders and automotive skeptics believe.Two ‘Trademark/service mark’ applications have been lodged by Tesla; “a triangle design consisting of three flowing, curved lines” creating a simplified impression of the car’s silhouette and “the word ROADSTER in stylized format”.Unveiled as a surprise addition to the brand’s ‘Semi truck’ reveal in late 2017, the sleek 2+2 Roadster was positioned as the fastest production car ever, with a launch originally scheduled for 2020.Claimed to sprint from 0-97km/h (0-60mph) in 1.9 seconds with a maximum velocity of 400km/h-plus and a range in excess of 1000km, the triple-motor, AWD machine generated huge interest with an initial batch of ‘Founder’s Edition’ models priced at US$250,000 (~$350,000).Those putting their hand up for a car from that initial batch were asked to pay the full price to reserve their production slot. Purchase of the standard Roadster (US$200,000 / ~$280,000) required a $50,000 deposit.Less than six months later, Tesla CEO Elon Musk announced news of a ‘SpaceX Performance Pack’ using 10 cold-air thrusters powered by a high-pressure air tank (replacing the rear seats) to achieve sub-1.0-second 0-60mph acceleration.At the time, Musk said the car would provide "roller-coaster" intensity performance and briefly be able to "fly".With estimated delivery timing for the Roadster progressively slipping further into the future - to 2022 (thanks largely to COVID-19), then 2023, then 2024 and most recently 2025, could this be the time Tesla Roadster 2.0 rubber really hits the road?Musk thanked what he referred to as "long-suffering" Roadster deposit holders during Telsa’s Q3 2024 earnings call and in its Q4 2025 earnings update (released in January this year), Tesla noted the Roadster is in “the final stages of preparation” with Musk adding it will be showcased at a Roadster 2 demo event scheduled for, no joke, April 1, with production to begin in 2027.Nothing like a 10th birthday party for alleged delivery of a much-hyped, over-promised and so far under-delivered ‘new’ hypercar.

Ferrari has confirmed the name and some interior design elements of its upcoming electric car, which is due to launch later this year.The 2026 Ferrari Luce, the brand’s first EV and proclaimed “the start of a new chapter” for Ferrari, was designed with help from San Francisco firm LoveFrom, founded by influential Apple designer Jony Ive and prolific Australian industrial designer Marc Newson.The design has, perhaps unsurprisingly, drawn a slew of negative online commentary for its departure from Ferrari’s previous interior design language.Jony Ive’s influence is clear, with flat glass screens, rounded edges and sleek buttons dominating much of what has been revealed, with a ‘retro’ flavour to much of the physical part of the interior.Ferrari says the philosophy behind the design is to organise the elements around control inputs and display outputs, with influence from “classic sports cars and Formula One single-seaters” simplified down to “essential functions”.The steering wheel is perhaps the clearest example of the ‘heritage-inspired’ design, with the tiller a modern interpretation of the classic three-spoke Nardi wheel of mid-20th century.A glass key fob that needs to be inserted into a dock to start the car has also been revealed, as well as a central control panel able to swivel towards either driver or passenger.The main panels shown also include a tablet-style digital driver display, central console with glass shifter, and a ceiling-mounted panel where the start-switch is found.The design influence from the head designers at LoveFrom is clear. Jony Ive was instrumental in the development of the iPhone’s now-iconic style as with many other early Apple designs, and Marc Newson has designed countless products including weapons, cameras, aircraft fittings for Qantas and even his own homes.So far, the key confirmed information on the technical side of the Luce includes its dual-motor setup with an output of more than 736kW, and a 0-100km/h time of less than 2.5sec.An in-house 122kWh battery pack will reportedly allow a range of more than 530km.

BYD is the latest brand to get in on the solid-state battery scene, with small-batch production to get underway in 2027, according to reports.This latest development puts BYD back in the race against Chinese rival Chery that has also recently announced solid-state technology. The Chery Exeed Liefeng shooting brake will feature a battery offering a potential driving range of 1500km, with an energy density of 600Wh per kilogram.This will launch after the Exeed ES8 shooting brake, which will be Chery’s first solid-state model, with a driving range of 1000km. We do not know which BYD vehicles will be fitted with this solid-state technology or its real-world potential yet.It is expected BYD’s technology will differ from Chery’s as it will use sulfide electrolytes as opposed to oxide-based chemistry. This different set-up could be a more practical route to commercial viability for solid-state technology as it is claimed to be easier to manufacture and provides benefits such as faster and safer energy transfer that could result in faster charging and lower fire risk. BYD’s solid-state powered vehicles will only be available in a small batch next year, which suggests there are no plans yet for the technology to enter full-scale production at this stage.Solid-state batteries have been gaining traction with car makers in China, but other big-name manufacturers in Europe and North America have been slower to get behind them. General Motors has highlighted its scepticism for solid-state, preferring investment in silicon graphite batteries, while Ford views it as a ‘possible future technology’.Mercedes-Benz unveiled a prototype solid-state powered version of its EQS sedan in September 2025, which travelled 1205km on a single charge. Full integration of this technology remains several years away, with full market integration unlikely to occur until the 2030s if it continues to gather steam in the EV space. 

Ford is planning five new budget models, including utes and SUVs, according to Automotive News. The Blue Oval will introduce five models priced under US$40,000 (under $55,000) by 2030 as it builds up its affordable options. These models will offer the brand some competitive alternatives to ever-expanding lineups from Chinese rivals.The first model will be an all-electric ute in 2027, potentially called Ranchero, built on its new Universal EV platform and part of a push into affordable EVs for the brand.It is expected the ute will have a price tag of about US$30,000, which is circa-$46,000.The Universal platform differs from the Global Electrified 1 platform used by the Ford Mach-E SUV. Electric ute options remain scarce and pricey in the market, with Toyota’s coming HiLux EV the most notable example so far.Ford recently ended production on its F-150 Lightning full-size pick-up EV due to slow demand.President of Ford Blue and Model e Andrew Frick said the five models would employ a variety in the power set-ups, wearing new names and focusing on affordability.“It will be across our lineup of cars, trucks, SUVs, vans, and it will be multi-energy,” Frick told Automotive News.  “That’ll start to fill in the product side, but we have work to do to help affordability in the near term more tactically.“I would say there’s probably 10 actions that we’ll do to help affordability.”Frick’s comments also outline that SUVs will form part of the five incoming models under the budget plan. Nothing further has been confirmed on that front yet, but it is unclear if Australia will see these budget models, given they will be built in America and likely be left-hand drive.These electrified models could assist Ford in Australia, offering valuable credit towards its Australia’s New Vehicle Efficiency Standard (NVES) situation, with most of its current models being internal combustion powered.The Blue Oval only has a plug-in hybrid version of its best-selling Ranger ute as well as the Mustang Mach-E SUV and Transit Custom EVs.Ford’s last SUV model on sale in Australia was the Escape, which never took off in Australia. It is anticipated Australia will get a China-built variant of the Ford Bronco SUV to fill this space, which uses a range-extender hybrid set-up. 

High demand and the production volume to meet it has pushed two emerging challengers in the Australian new vehicle market to even greater heights in the first month of 2026.With 2025 new model additions including the Shark 6 ute, city-sized Atto 1 electric hatch and compact Atto 2 EV SUV, as well as the larger pure-electric Sealion 7 and plug-in hybrid Sealion 8 SUVs, BYD’s year-on-year sales for the month of January grew by a spectacular 640.9 per cent.In outright numbers, that’s 5001 units sold compared to 675 in the same month last year.In particular, the Sealion 7’s popularity has seemingly put the squeeze on several established medium SUV contenders like the Honda ZR-V (-15 per cent), Kia Sportage (-30.7 per cent), Nissan X-Trail (-34.2 per cent) and even the normally segment-leading Toyota RAV4 (-65.4 per cent), the latter two in run-out mode.Given the pure-electric Sealion 7’s size, specification and starting price ($54,990, before on-road costs), arguably its most direct competitor is the Tesla Model Y (from $58,900, BOC), the latter down 38.1 per cent in January, the BYD outselling it four to one (1171 units to 288).   At the same time, Chery more than doubled its January sales (+105.8 per cent), largely thanks to the ongoing success of its Tiggo 4 Pro, which comfortably led the small SUV category ahead of 2025 segment heavyweights like the Hyundai Kona, GWM Haval Jolion and MG ZS.With a starting price of $23,990, drive-away, it’s not hard to see why the Tiggo 4 Pro, easily the most affordable small SUV in the country, has made such an impact. Again, some long-standing players in this part of the market like the Mazda CX-30 (-3.9 per cent), Mitsubishi ASX (-90.9 per cent, in new model ramp-up) and Subaru Crosstrek (-22.8 per cent) took a backwards step, year-on-year.Another solid improver from China for January sales was GWM (+31.3 per cent), while other volume brands, LDV (-19.5 per cent) and MG (-16.5 per cent), declined.