Industry news

Mazda has taken more steps away from electric cars, announcing a trial for its biodiesel fuel in Japan, and it could be a game-changer in Australia.Biodiesel is considered a renewable fuel made up of vegetable and used cooking oils, among other organic materials.The trial will take place towards the end of 2026.It will be conducted between the brand’s Hofu, Nishinoura district plant and Nakanoseki finished vehicle yard - a distance of 12km.It will assess fuel efficiency, performance and operational challenges to collect insights with a view to further expansion. The transport trailers used in the trial will operate under conditions equivalent to conventional diesel fuel, which includes maintenance and inspection practices. Mazda is already considering the logistics of a full integration for the fuel system, working with distributors in Japan to develop supply systems and infrastructure. It said it is aiming to achieve carbon neutrality across its range by 2050, with these plans coming at an important time for the brand in Australia.The brand finds itself behind in the electrified vehicle race, which has seen it on the cusp of copping substantial emissions-related fines.It has sought to rectify this with the introduction of the fully-electric Mazda 6e sedan and Mazda CX-6e SUV Down Under.This biodiesel fuel push is further evidence of Mazda's recent venture into non-EV clean emissions alternatives.It recently confirmed the push back of its own electric car plans in favour of hybrids.It is too early to tell whether biodiesel will become an established part of Mazda's lineup, but a trial shows there is potential.Mazda Australia has been contacted for comment to see if there are any plans for biodiesel technology to be introduced and what impact this could have on EVs. Mazda currently offers diesel set-ups in some of its bigger SUVs such as the CX-60, CX-70, CX-80 and CX-90, as well as the BT-50 ute. A fully-integrated biodiesel-powered BT-50 could give Mazda the edge over conventional diesel rivals. These diesel powerhouses have experienced challenges in maintaining towing and carrying capacities with cleaner set-ups.Ford recently announced its Ranger utes have biodiesel capacity, including a fleet of units that run on this fuel at Melbourne Airport. The Ford Ranger plug-in hybrid has had a tepid sales response with its lesser payload, while the incoming Hilux EV will only have a driving range of less than 300km

China’s XPeng has opened the door to dealers as the factory-backed operation pushes ahead in Australia.Despite its ongoing legal stoush with previous distributor TrueEV, XPeng’s new fully factory-backed operation is promising a seamless transition for prospective buyers and current owners.The company said it has appointed dealers and opened offices in Sydney, Melbourne and Brisbane, and has sent its location finder live on its consumer website.XPeng is also promising its parts and service network is fully operational with a new warehouse for spares in Melbourne and the ability to cover cars in most states, in what will no doubt come as a relief for existing G6 owners.A spokesperson for the new factory-backed XPeng operation said the company is “building for the long-term in Australia”.However, they could not yet provide information on when the customer-facing locations will go live, or provide an update on timing for new cars hitting the ground.Previous distributor TrueEV is taking the new factory-backed operation to court for unconscionable conduct for allegedly tearing up its distribution agreement and undermining its operations to the point it was forced to de-list some dealers, making it impossible to sell vehicles.Since the brand’s establishment in Australia in 2024 under TrueEV, it has only offered a single model, the pre-facelifted version of the G6 mid-size electric SUV.Plans to expand this catalogue to include the G9 large SUV, X9 people mover, and potentially the Mona M03 sedan have not yet come to fruition, although the new factory entity lists the facelifted G6 on its new website with only expressions of interest open for the time being.XPeng will need a boost once its legal woes are behind it, as the delayed model roll-out has no doubt cost the brand potential market share in Australia as our new-car landscape becomes increasingly competitive.Its primary rivals, BYD, Zeekr and Tesla are soaring in the sales charts off the back of their respective line-ups of desirable and keenly priced electric models, with BYD leaping up the charts in large part thanks to its plug-in hybrids.XPeng does not yet provide registration data to VFACTS or the EV Council so it is hard to tell how many examples of the current G6 are in the country.The incoming updated G6 is a significantly updated vehicle underneath despite a mild aesthetic update from the outside.It includes a larger set of screens inside (consisting of a 10.2-inch digital dash and 15.6-inch multimedia touchscreen), a more powerful processor and larger battery capacities with longer driving ranges.The brand said at the launch of the updated car in China last year that it was 34 per cent new and included a total of 81 feature updates.The outgoing car was priced from $54,800 before on-road costs in base form, featuring a 190kW electric motor in a rear-wheel-drive layout.While the new entity will no doubt update its pricing strategy with the incoming G6, a similar price point would still make it a competitive offering when measured against the current Tesla Model Y (from $58,900), Zeekr 7X (from $57,900) and BYD Sealion 7 (from $54,990).

Toyota cancelled another of its upcoming electric vehicles last week -in this case it was its luxury arm Lexus and the LF-ZC sedan leaving it even more exposed to the premium Chinese EV assault.So, are we seeing the fall of an empire here with Toyota or does the Japanese giant have a secret plan?Toyota's axing of the Lexus LF-ZC sedan isn’t surprising, it’s very much in keeping with the company’s change of plan to pursue hybrids rather than EVs in the short term.In 2021 Toyota held a global address announcing that it would launch 30 new EVs by 2030. Well, we are now only about three and a half years away from the end of the decade and Toyota has only launched about three and a half  EVs - the bZ4x, Toyota HiLux, C-HR, and the longer version of the bZ4x - the Touring. The reason is a change of direction. Two years ago Toyota revised its plans and decided that the uptake of EVs wasn’t as strong as many had expected and decided to double down on hybrids instead.The decision made sense - the world was experiencing a slow down in the adoption of EVs and Toyota delayed pouring A$100 billion into the development of 30 new models.Toyota Australia's Vice President Sales at the time Sean Hanley told CarsGuide in January 2025 that the company had read the market accurately after all.“The plain truth is that demand for battery electric vehicles (BEVs) in markets around the world is not living up to the hype,” he said.Hybrid sales were booming and Toyota changed plans and went back to doing what it had pioneered - hybrid powertrains. But March 2026 saw the world change again with the war in Iran and the Strait of Hormuz being blocked and preventing oil from being shipped through the channel. About 20 percent of the world’s oil and natural gas is transported through the channel and by the second month of the blockade the world’s petrol and diesel prices skyrocketed, particularly in Australia which sources its refined fuel from countries such as Malaysia which are supplied with oil from the Middle East.With this turn of events consumer interest in electric vehicles picked up again.Sales of EVs had gone from being down year-on-year by 61.9 per cent for cars (sedans and hatches) and down 12 per cent for SUVs in January 2025 to up by 77.4 per cent for cars and up by 150 per cent for SUVs.So why is Toyota still axing EVs? Well, never underestimate Toyota. The brand may look like it’s suddenly behind the eight-ball after a huge geopolitical change and it may also look like the victim of a surprise attack from a multitude of appealing Chinese electric offerings from brands such BYD and Zeekr, but Toyota is the world’s biggest car manufacturer and you can bet it either has a plan… or it can buy one.There are several possible plays going on here in my opinion.First, Toyota is probably banking on the spike in EV interest to fall once the conflict is over and believes consumers will return to hybrids. This is probably the most likely scenario, although I doubt people will return to buying petrol and diesel cars now without thinking about it as they did in the past. The fuel crisis has been a major catalyst in the switch to EVs.A second scenario is that Toyota is close to a solid state battery breakthrough and is holding off EV development until an affordable and practical example can be made, but this seems less likely.Toyota finding the solid state holy grail of batteries seemed like a possibility five years ago but Chinese carmakers such as Chery, BYD and battery maker CATL are reportedly already testing the tech in prototype form before an expected market launch between 2027 and 2030. When the solid state battery breakthrough comes it will be thanks to a Chinese carmaker - with recent commentary from Toyota itself placing doubt on the idea of the technology ever being ready for mass production.And third, which is probably going to happen, Toyota may decide to take the vehicles it produces in joint-ventures in China  and launch them globally.Toyota already has two major joint ventures in China - one with Guangzhou Automobile Group (GAC) and the other with First Automotive Works (FAW).Toyota-GAC models include the bZ7 fastback along with Chinese versions of the bZ3X and bZ4X.And before you scoff at Chinese Toyotas, just look at the bZ7. To my eyes this is one of the most beautiful Toyotas from the past decade which isn't hard considering the brand is famous for making what some people consider whitegoods on wheels.And with the changing of the guard in Australia, Toyota locally now appears to have decided which plan to go they'll pursue.Toyota Australia's new Vice President of Sales, John Pappas has a slightly different take on the situation than his predecessor and appears to be embracing the possibility of the company using its global manufacturing reach to sell cars into the future. “So the beautiful thing, the benefit of being such a global company like Toyota, and being in around 180 markets all around the world, and having so many manufacturing plants, that enables us to assess - whether it's sourcing of the vehicle, spec, powertrain.”  The future may prove to be a bit of scenario one to start and then into scenario three with Chinese made Toyotas. Either way the world’s biggest car brand has plenty of options to survive and thrive.  

Bentley says it will not leverage the Volkswagen Group's close ties with SAIC and XPeng to gain access to state-of-the-art EV tech or range-extender powertrains to help it succeed in markets like China.Following fresh reports that fellow luxury brand, Maserati, is in high-level discussions with both Huawei and JAC, Bentley boss Frank-Steffan Walliser was quick to rule out any possibility of borrowing any tech from China, however cutting-edge.Walliser said: "You have some specific technologies that are available in China. For sure, you can use them." people are looking for a British luxury car."Walliser went on to say that buyers look at both the product and the content and that both had to remain true to Bentley, and that it's the same reason the 107-year-old brand had not simply relocated some of its assembly lines to the US to avoid the recent tariffs that reportedly cost it €42 million (A$68 million) last year alone.While Maserati thinks that the addition of a range-extender hybrid powertrain and JAC's latest pure-electric power for models like its all-new seventh-generation Quattroporte will help it finally win over Chinese buyers in a way previous models haven't, again, Walliser isn't convinced."We already have a very nice range extender. A 4.0-litre twin-turbo V8 with a very small battery. I feel this is perfect", said the CEO, referencing the firm's latest Ultra Performance Hybrid powertrain that was launched on models like the Continental GT Speed, GTC convertible and Flying Spur.Despite producing as much as 575kW and 1000Nm of torque, each model can only drive in EV mode up to 80km on a single charge, a long way off the 200-400km some luxury limos are capable of with their range-extender hybrids, which feature bigger batteries and only employs a combustion engine as a generator, rather than driving the wheels.It's not just a long zero-emission range that sees Chinese buyers favour range-extenders over a plug-in hybrid (PHEV) from the likes of Bentley and other Euro brands.Range-extended hybrids as well as EVs attract both healthy purchase incentives and tax breaks, while PHEVs are sometimes lumped in together with traditional petrol and diesel combustion engines and can see them be hit by license plate quotas, which means any potential owner has to enter an expensive and highly competitive lottery just to be able to register their car.With Bentley's first-ever EV just a few months away, Walliser says he has high hopes for the Urban SUV that's being developed under the D-LEV codename, and believes its blend of innovative tech, styling, more compact footprint (compared to the Bentayga), generous levels of space and big power should prove a big hit in a segment yet to be explored by the brand."On our short to midterm strategy it's clear hybrid is right, but we will balance portfolio by offering a fully electric car. What I'm very happy about is 20-25 per cent of the market is already electric. And we see a movement, and all our luxury competitors will soon have an electric car on offer. It would be a mistake to not offer one."Sadly, for those waiting for a replacement for the largest Mulsanne limo, you might be in for a long wait.Walliser: "I'm very, very often asked about Mulsanne, just not by customers and mainly by media."We've looked at it and there's no market."Instead, the Supersports name introduced on the inbound rear-wheel drive Continental GT Supersports will spin off a new hardcore model variants based on core models, with a limited-run Continental GTC Supersports potentially already in the pipeline, hinted the Bentley boss.

The first arrival of a BYD-owned shipping vessel to Australia has caused a stir as the brand’s top brass is confident troubles with supply in its home nation won’t affect Australian demand.The BYD Zhengzhou docked at the Port of Melbourne carrying 4809 BYD vehicles destined for Australian customers, part of a promise to deliver 30,000 new cars in the second quarter of 2026.BYD has already more than doubled its sales in the first quarter of 2026 compared to Q1, 2025, and if 30,000 vehicles are added to the existing count before halfway through the year, BYD will finish the first half with a remarkable 55,000 new cars sold in Australia.But on the morning media were given a tour of the BYD Zhengzhou in what could arguably be called a fanfare event, Toyota Australia announced it “has secured an additional 10,000 vehicles for local customers in 2026”.Toyota sold 59,675 cars in Q1 to BYD’s 25,243. BYD also remains behind Mazda, Kia, and Ford.The timing suggests Toyota wanted to remind Australian buyers who is number one in the sales race, but BYD’s commitment to meeting demand for electric vehicles (EVs) and plug-in hybrids (PHEVs) is clear, and the brand’s top brass didn’t hesitate to say as such.Liu Xueliang, Group Vice President of BYD and General Manager of BYD Asia-Pacific Auto Sales Division, told Australian media during a conference in Port Melbourne that despite battery supply challenges in the brand’s home market, BYD would meet demand in Australia.Via interpreter, Mr Liu told CarsGuide that even at home in an EV-saturated market, BYD’s outlook is optimistic.“Sales in China have begun to recover in Q2, we achieved 380,000 units sold in May just past. “Growth has tightened a bit, but that does not affect supply to markets including Australia.“This is just one of our ships, but we’ve got many other ships that are arriving in Australia.”While Mr Liu wouldn’t be drawn on Toyota’s announcement, the theme that returned many times during the conference was BYD’s ownership of its own supply chain, and the control that grants.Given Australia’s demand for plug-in hybrids and EVs in 2026 is higher than it has been by huge margins, Liu Xueliang said this wouldn’t be the first time a BYD-owned ship would be seen in an Australian port.

BYD’s Fangchengbao brand has released official imagery of a new electric shooting brake wagon ahead of its launch in the domestic market in the third quarter of 2026.Dubbed the Fangchengbao Formula S GT, this is essentially a shooting brake version of the Formula S sedan that's already been shown.It forms as a key rival to the Porsche Taycan which is available both as a sedan and shooting brake wagon.As reported by China’s Autohome, this car will come with a fully electric powertrain with the electric motors being fed by a second-generation Blade lithium iron phosphate (LFP), allowing flash charging capabilities.No official power, range or performance figures have been announced yet, but it’s expected there will be multiple variants.It’s also understood the Formula S GT features adaptive suspension, as well as semi-autonomous driving capabilities due to the LiDAR sensor on the roof.In terms of design, this electric liftback bears some similarities to the Denza Z9 GT which is already confirmed for an Australian launch later this year.It also has a similar footprint, with the Formula S GT measuring 5.0 metres long and 2.0 metres wide, with a 3.0-metre wheelbase.Some exterior design highlights include semi-flush door handles, diamond-shaped tail-lights, plus an active ducktail rear spoiler.Fangchengbao hasn’t officially revealed any imagery of the Formula S GT’s interior yet.At this stage it’s unclear whether the Formula S GT, or even the regular Formula S, will come to Australia.The Fangchengbao brand doesn’t have a presence in Australia, though a few of its models are badged as Denza models locally.Even if it comes to Australia, it’ll compete closely with the Denza Z9 GT, which is due to arrive before the end of 2026.Power will come from three electric motors with a total system output of 850kW. This will allow for a claimed 0-100km/h sprint time of 2.7 seconds.Additionally, the Z9 GT will offer flash charging capabilities at up to 1500kW.

Mitsubishi's plans to tackle BYD and Chery have just been revealed.The Japanese giant is planning to introduce 13 new models, including five hybrid and five plug-in hybrid models over the next five years. This could have huge implications for the brand in Australia, especially as it battles tough impending New Vehicle Efficiency Standard (NVES) fines. More electrified vehicles on sale could help ease those pressures. Mitsubishi Australia has been contacted for comment to see if there are any plans for these models to launch Down Under. The incoming Pajero is one of these new models, but it is just the beginning of a comprehensive shake-up from the brand. It will launch a small SUV, a compact SUV, two other undefined SUVs as well as a new ute, among other models falling into the off-road product plan.Additionally, there will be two new electric SUVs, with a pick-up and two Kei (Japanese city-class) cars also being planned. The brand also detailed some of its key weaknesses stating there was “significant room for improvement” required across the board. It identified the challenges for Mitsubishi in achieving differentiation to other brands - something which has become an increasingly big issue with the rise of Chinese carmakers.Brands such as BYD and Chery have introduced many models posing direct competition to Mitsubishi, but at much cheaper prices.“We will build a line-up that embodies our brand, centred on the off-road product group and ASEAN product group,”  “At the same time, regarding electrification, while we will continue to utilize collaboration models for EVs, we will focus our in-house development on HEVs and PHEVs.“Going forward, Mitsubishi Motors will focus on product segments where we have strengths, refine differentiated product characteristics that set us apart from competing brands, including Chinese brands, and establish a unique position in the automotive industry.”The return of the Pajero 4WD in Australia is scheduled for the fourth quarter of this year, and appears to be the first of this new era for Mitsubishi.

Jaecoo’s big J9 luxury range-extended hybrid SUV has just been given the green light to land in the UK, according to reports, which hints at a future Aussie launch.The Jaecco J9 is related to the Chery Fulwin T11 on sale in China. It will wear the brand’s luxury Jaecoo badge in the UK, according to AutoExpress, but it's essentially identical to the T11 apart from some styling differences.The Fulwin T11 was launched in China in 2025 and made headlines for its claimed 1400km driving range. The Fulwin T11’s range extender hybrid system combines a 1.5-litre turbo-petrol four-cylinder petrol engine with one or two motors depending on the variant for front wheel drive or all-wheel drive.In China two batteries are available: a 33.68kWh battery for the single motor variant, and a 39.92kWh battery for the dual motor. The system is able to offer up to 220km of electric driving range.The range is impressive, but so is the Fulwin T11’s interior, which is expected to carry across to the Jaecoo J9.It is a big unit at more than 5.1m long and with a wheelbase of 3.1m. The Fulwin J11 is a six-seater over three rows, with two captain’s chairs in the second and third rows. The interior is spacious, opulent and tech heavy.A 30-inch 6K LED display runs across the Fulwin J11’s dashboard and a 17.3-inch screen is offered in the second row on all but the entry grade.Pricing and specifications have yet to be announced for the Jaecoo J9 in the UK, but the slightly smaller Jaecoo J8 in Australia starts at $49,990 drive-away. If and when the Jaecoo J9 does land locally buyers can expect prices to begin at about $60,000.CarsGuide has contacted Chery Australia for confirmation of the Jaecoo J9’s arrival and is still awaiting its response.

While Japanese brands increasingly turn to Chinese partnerships for more affordable and globally competitive models, it doesn’t always work out.According to Nikkei Asia, GAC, which recently launched in Australia and has some of the biggest name joint-venture partners in China, is in trouble.The Guangzhou-based automaker, which counts Toyota and Honda as long-term partners, has been losing money on every single vehicle it sells as it has recently been trying to fight in an aggressive Chinese domestic price war with BYD and others.According to figures published by Nikkei Asia, at one point the company was losing the equivalent of  A$1714 on every single vehicle sold under its own branding. In its annual results announcement for the full year of 2025 reported to the Hong Kong Stock Exchange, GAC said its subsequent loss in revenue was due to “intense competition in the automobile industry,” earmarking risks to the future of its business from “increasing survival pressure on automobile enterprises and entering the high-speed shuffling phase of survival of the fittest”.GAC said the level of competition was directly eroding its profit margins, and with Chinese brands approaching 70 per cent sales proportion in the local market, it was placing pressure on joint-venture brands.GAC’s annual results documents also revealed some realities of the Chinese market that is directly contributing to the big push for longer-range plug-in hybrid models, which are increasingly making their way to Australia.“Technical requirements for vehicles eligible for tax reductions and incentives has been raised. The pure electric mode range and energy consumption standards for plug-in hybrid (including range-extended) passenger vehicles have been further tightened,” the company said.“If a company lags in R&D or supply chain fails to meet the standards, its main models may not comply with the new regulations, resulting in the loss of subsidy eligibility or market access To meet stricter safety, range, and environmental standards, enterprises’ mandatory investments in areas such as battery materials, thermal management systems, and low-carbon manufacturing processes will continuously increase. At the same time, the phase-out of purchase tax subsidies has directly reduced profit margins per vehicle, presenting severe challenges to the overall profitability of the industry.”As a result, GAC said the company’s operating profit had declined for two years straight, and had recorded a loss for the first time since listing with the exchange in 2010.Nikkei Asia points out the company had been heavily discounting its Aion-branded vehicles (two of which are sold in Australia - the UT hatch and V mid-size SUV) to keep up with the aggressive discounting of rivals, but was failing to meet volume expectations.The bleak competitive landscape comes as GAC’s long-term joint-venture with Honda is due for renewal by 2028 after 30 years. Honda-branded JV vehicles in China have experienced a slump at the same time as its Japanese parent recorded its first ever financial year loss for the 2025 Japanese Financial Year off the back of expensive global EV investments (amounting to the equivalent of $12.5 billion AUD), which have subsequently been cancelled and written-down.Honda executives have reportedly been taking meetings with GAC, and are yet to make a decision on the future of the partnership, according to Nikkei Asia.It is in stark contrast to Nissan, for example, which is only leaning further into its comparatively successful joint-venture with Dongfeng (with which Honda also has a joint-venture), which has netted a range of well-received models with big global potential, including the N7 sedan, NX8 SUV and Frontier Pro ute.GAC/Honda don’t have plans to export cars to markets like Australia. GAC's joint-venture with Toyota has been more successful in China, and has launched in right-hand drive markets such as Hong Kong.Market troubles in China have only been good news for the Australian market, with many brands seeking higher-margin markets to soak up production capacity and bolster profits, which is part of the reason our new car landscape has become so crowded and competitive.

Tesla has seemingly rectified the most annoying flaw in its Model Y SUV with the introduction of a retractable sunshade to reduce heat radiating into the cabin through the car’s large glass panoramic roof.Launched as an accessory on the brand’s Chinese website at ¥1499 (~A$310), the manual sunshade will be available for delivery from Thursday this week.Installation appears to be straight forward with the single-piece unit trimmed in the same fabric as the original factory headliner and features metallic handles.DIY fitment should be the norm but Tesla is also offering professional installation for an additional fee.And unlike the myriad of aftermarket (typically clip-in) third-party options available, the factory unit is constructed with an integrated frame and uses a roller-type design to ensure low noise.It’s worth noting Tesla has published a patent focused on engineering the glass roof to help cool the cabin, so this new option may ultimately be a temporary solution.Suitable for 2025 and later Model Ys, Tesla said the shade has “undergone full-vehicle airbag deployment testing and multiple road tests to ensure safe use”. CarsGuide contacted Tesla Australia to check in on local availability and a spokesperson said, “At this point in time the retractable roof is just for China, however it is anticipated that accessories will be available outside of the Chinese market in the future.“What we have seen with Model Y L is an overwhelming global volume (for markets that do take it) which sees accessories take some time to come to market”, they said.