• Stellantis will build Dongfeng’s Voyah EVs in France through a new European joint venture.
• The deal follows Stellantis’ Leapmotor tie-up, which already brings Chinese EV production to Spain.
• Chinese automakers are turning to European assembly to blunt tariffs and gain a local foothold.

Stellantis, the automotive conglomerate that owns Jeep, Ram, and 12 other car brands, has just announced a joint venture agreement with China’s Dongfeng to build Voyah EVs in one of its European factories. It already has a similar deal with Leapmotor, under which the latter is assembling its vehicles at a Stellantis plant in Spain to bypass import tariffs these vehicles would have faced if they were manufactured in China.

Chinese EVs face an additional import duty of up to 35% in the EU, on top of the existing 10% import tariff. This hasn’t stopped Chinese automakers from bringing their vehicles over and undercutting local competition, but building them locally is an even better deal for the automakers.

The new Dongfeng deal focuses on the Stellantis plant in Rennes, France. It can accommodate up to three production lines and, at its peak, produced 400,000 vehicles per year, but now it only produces the Citroen C5 Aircross, using only a third of its capacity. Dongfeng will also build Peugeot and Jeep vehicles in China as part of the same deal.

Stellantis already knows the playbook through its tie-up with Leapmotor (in which it holds a controlling share). The Chinese manufacturer initially began production of the T03 electric city car in Poland, but production there was halted in March last year, and it now builds the B10 electric crossover at the Stellantis factory in Zaragoza, Spain. 

Reuters says Leapmotor is looking to expand its collaboration with Stellantis and identify which of Stellantis’ European factories have unused production capacity to build its own models. Leapmotor will also be providing the platform and key components for a new Opel electric crossover, making it one of the first European-badged vehicles built on fully Chinese underpinnings.

Other Chinese automakers have also begun efforts to localize production in Europe. BYD is the most famous in this respect with the huge factory it’s building in Hungary. Chery has partnered with Spain’s Ebro to use the former Nissan plant in Barcelona, while Xpeng and GAC have turned to Austria’s Magna Steyr to assemble cars in Europe.

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Europe’s tariffs were designed to protect its car industry from cheaper Chinese EVs, but they may end up accelerating a different kind of Chinese expansion. Instead of simply importing finished cars from China, automakers are now looking for factories, partners, and production footholds inside Europe itself.

For Stellantis, this gives underused plants the prospect of more work and potentially gives its European brands access to cheaper, faster-moving EV technology. Chinese automakers need to get around tariffs and find a path into the market. It’s increasingly looking like Europe’s next wave of affordable EVs may not be imported from China. They may be Chinese-engineered cars built in European factories, sometimes wearing badges buyers already know.

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Chery has been one of the fastest growing brands in Australia and over the last 18 months has launched Omoda Jaecoo as a sub-brand geared towards younger “adventure-focused” families.

Now, the automotive giant is in preparation to launch another sub-brand in Australia, which it calls Lepas, and has revealed two BEV models heading towards our market.

These will be the Lepas L4, a small SUV, similarly sized to a BYD Atto 2 or recently revealed Ora 5 EV , while the L6 is a bit bigger, more Geely EX5 length car.

The L4 will be available as a BEV, along with a hybrid powertrain, although details on the battery and motors are likely to be revealed in the coming months.

Both models were also showcased at the currently running Beijing Auto Show and have so far received quite a positive reception from international media that attended.

That’s because the Lepas brand is geared specifically for international markets, including right-hand-drive markets like Australia and New Zealand.

These models will ride on the LEX platform, which allows the brand to incorporate the latest BEV architecture into these cars. 

Although local technical specifications are yet to be confirmed, the L4 specs in other markets show a 67.1 kWh battery pack, powered by a 160 kW motor.

This will help the car accelerate from 0-100 km/h in just under 8 seconds, which is fairly respectable for a small city electric SUV.

The battery is expected to offer around 400 km of range, and charging it should take under 30 minutes at the right DC fast charger.

Inside, the car’s interior is similar to that of the Omoda Jaecoo J5 EV, particularly the screen behind the steering wheel and the main portrait infotainment screen found in the centre.

There’s also a wireless charger and two cup holders with the cabin layout aimed at being quite minimalist.

Detailed specifications for our market will be revealed along with the pricing of the car. We expect it to be priced above the current Omoda Jaecoo J5 EV, which has an introductory offer of $36,990 driveaway in Australia.

Given the success of the J5 EV, we’d be keeping an eye out for the L4 and the L6, as they could also see solid sales once they debut closer to the end of 2026.

TOYOTA is confident that increased brand recognition for the bZ4X nameplate will contribute to significantly improved sales for its battery electric mid-size SUV model in Australia according to its local vice president of national sales, marketing, and franchise operations John Pappas.

 

Speaking with GoAuto at the Australian launch of the sixth-generation Toyota RAV4 in Tasmania last week, Mr Pappas expressed his confidence in the upgrades made to the bZ4X, and noted that inquiries had increased – even before recent fuel price spikes raised demand for EVs in the Australian market.

 

“I firmly believe that the new bZ4X upgrade that we’ve made is a very big step up when it comes to the value proposition to a customer,” he said.

 

“Well before the escalation of the fuel issues that are going on around us right now, we were seeing this massive step-up.

 

“Then we had the last three to four weeks where we’ve had even further inquiry on the car, because people are getting very nervous about now inquiring on EVs on the back of the fuel situation.”

 

Further interest in the model has been generated by the imminent arrival of the Touring variant, landing in Australian showrooms in May.

 

“On top of that we’ve now got the bZ4X Touring coming which is another value proposition because it’s a wagon, it’s got great power, and it’s got extra luggage space. It gives us a new conversation, and we’re excited about that.”

 

It has taken time for the bZ4X to garner brand recognition, as was the case for Toyota’s hybrid models according to Mr Pappas. However, its increased familiarity has improved the model’s sales outlook.

 

“We have obviously got such breadth across our range of hybrids, but hybrid technology has taken us over 20 years to (get to a level where it can now) penetrate 50 per cent of our sales,” he added.

 

“Now, we’ve introduced a new nameplate, which was the bZ4X in 2024, and at that time brand familiarity with ‘bZ’ was quite low.

 

“In time – a bit like hybrid – we saw the ‘bZ’ get increased familiarity and increased consideration, which is good.

 

“And now, obviously, with the latest (fuel price) situation – and a very good step up in the value of the bZ4X – we believe it is going to do five times (as many sales as) it did last year.”

 

Toyota bZ4X sales were slow when the model first arrived in Australia, mustering just 977 deliveries in 2024 and 1041 during 2025.

 

Meanwhile, the Tesla Model Y – Australia’s best-selling mid-size electric SUV in 2025 – posted 22,239 units sales in the last calendar year.

 

However, an update for the bZ4X was rolled out in Australia in December last year, which added a larger battery and more powerful electric motors – factors that have evidently increased the model’s appeal in the eyes of local buyers.

 

The two-wheel drive model received a 15kW/2.6Nm power and torque increase, while the all-wheel drive models’ power output increased by 92kW. 

 

Its lithium-ion battery capacity was increased from 71.4kWh to 74.7kWh, resulting in a driving range increase of 155km and 106km on the WLTP cycle for the 2WD and AWD models respectively.

 

Prices were also slashed to the tune of $10,010 for the entry-level two-wheel drive model and $6910 for the all-wheel drive variant with the update.

 

The bZ4X range now starts from $55,990 plus on-road costs for the entry-level 2WD model, rising to $67,990 + ORC for the AWD version.

 

The incoming Touring model serves as the new flagship of the range and is priced at $69,990 + ORC.

CHINA’S number one carmaker, BYD, has warned of an impending shakeout in the domestic electric vehicle sector after reporting a 19 per cent drop in annual net profit, despite continued sales growth.

 

In hard numbers, the giant Shenzhen-based carmaker posted a net profit of 33 billion yuan ($A6.87b) for the year ended December 31, as intensifying price competition (discounting) in China eroded margins.

 

Revenue, however, edged up 3.5 per cent to 804 billion yuan ($A166b).

 

Automotive media reported BYD chairman Wang Chuanfu saying the industry had reached a “brutal knockout stage”, with weaker players likely to be forced out as competition reaches “fever pitch”.

 

The warning reflects mounting pressure across China’s crowded EV market, where dozens of domestic brands are competing amid softening demand, excess supply and reduced government support.

 

BYD’s global sales of electric vehicles and plug-in hybrids rose 7.7 per cent to 4.6 million units in 2025, though its China deliveries fell 7.8 per cent to 3.55 million.

 

Profitability was hit harder, with net margin declining to 4.1 per cent from 5.2 per cent the previous year.

 

Industry observers expect consolidation to accelerate, with some executives forecasting only a handful of viable players will remain over the next five years as weaker brands exit through factory closures or mergers possibly accompanied by job losses.

 

To counter slowing domestic growth, BYD is ramping up its international expansion, with overseas markets emerging as a key growth driver.

 

The company now operates in 119 countries and has invested heavily in export logistics, including a fleet of dedicated vehicle carriers. It is also building out production capacity globally, with new or planned facilities in Cambodia, Brazil and Hungary, alongside existing plants in Thailand, and Uzbekistan.

 

Overseas deliveries more than doubled in 2025 to 1.05 million units, helping lift international revenue by 40 per cent to 311 billion yuan ($A64b), representing 39 per cent of total revenue – up from 29 per cent the previous year.

 

Despite the challenging market conditions, BYD continues to invest heavily in new technology, with more than 120,000 engineers working across battery and vehicle development.

 

Recent breakthroughs include a second-generation Blade battery and ultra-fast charging capability, with BYD claiming the system can charge from 10 to 70 per cent in five minutes and up to 97 per cent in under 10 minutes under normal conditions.

 

The technology, already deployed in China, is expected to roll out to international markets later in 2026 as BYD looks to strengthen its competitive position globally.