Chinese – Engine Icon https://engineicon.com Latest car news and advice blog Tue, 14 Jul 2026 02:07:52 +0000 en-US hourly 1 https://wordpress.org/?v=7.1 https://engineicon.com/wp-content/uploads/2026/01/cropped-ME_favicon-1-32x32.png Chinese – Engine Icon https://engineicon.com 32 32 Jeep And Ram’s Owner Partners With Another Chinese Brand To Build EVs In Europe https://engineicon.com/jeep-and-rams-owner-partners-with-another-chinese-brand-to-build-evs-in-europe/ Thu, 21 May 2026 06:59:14 +0000 https://engineicon.com/jeep-and-rams-owner-partners-with-another-chinese-brand-to-build-evs-in-europe/

  • 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.



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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You Can Buy This Lincoln Town Car Reskinned With Chinese Domestic Market Parts From a Bygone Era https://engineicon.com/you-can-buy-this-lincoln-town-car-reskinned-with-chinese-domestic-market-parts-from-a-bygone-era/ Thu, 14 May 2026 11:30:04 +0000 https://engineicon.com/you-can-buy-this-lincoln-town-car-reskinned-with-chinese-domestic-market-parts-from-a-bygone-era/

Plenty of car people love Ford’s Panther platform. The Crown Victorias, Town Cars, and Grand Marquis that once served as taxis and patrol vehicles are now being scooped up by enthusiasts for tank engine swaps and track duty alike. But this particular Lincoln has lived a much different second life as a Hongqi CA7460 replica, and its origin story is super interesting.

I stumbled upon this car when Panther Magazine posted it for sale on Instagram. Curious, I reached out to the seller, whose name is Yang (@cy0208 on IG). He explained to me that, while this is a registered 2001 Town Car underneath, it wears many Chinese domestic market parts—from the grille and lighting to the unique badging you definitely won’t find at your local salvage lot.

The way Yang explained it to me, China’s state-owned FAW group sent a design and engineering team to the United States sometime around 1997. This trip and multiple follow-up conversations resulted in Ford shipping nearly complete Town Cars to China for Hongqi to outfit with its own distinguishing parts. It was even intended to become a diplomat’s car, as a long-wheelbase model was developed to serve as an inspection vehicle in the 1999 National Day Military Parade in Beijing. Plans were scrapped as political tensions swelled following the U.S. bombing of China’s embassy in Belgrade.

Still, Hongqi built an entire line of CA7460 limousines, and the car itself remained in production until 2005.

What Yang did was buy a 2001 Lincoln Town Car in the States and then fit it with Hongqi components that he imported from China. It has made its way around the internet, and as I researched the car, I was utterly unsurprised to see that Jason Torchinsky at The Autopian had already seen it in person (That guy’s too good!).

What’s new now is that the Hongqi replica is for sale, and you can buy it for $10,000. You might whiff at that, but just know that it has only 75,000 miles or so on the odometer. The interior is in way better shape than it could be, and there’s a fair chance it’s the only one around.

Like all CA7460s and Town Cars of this ilk, it’s powered by a 4.6-liter modular V8. Rear-wheel drive means it’s capable of some smoky burnouts and skids, if you’re into that type of thing, though part of me hopes someone will avoid thrashing it completely. Yang put a lot of work into assembling this car, and he’s kept it respectfully clean.

I’m afraid I won’t be the one to buy this car. Blame it on my other projects, like the 1966 Ford dump truck that’s currently parked in my driveway with two flat tires. But perhaps you’ll be interested in taking home this piece of automotive esoterica?

Got a tip or question for the author? Contact them directly: caleb@thedrive.com

From running point on new car launch coverage to editing long-form features and reviews, Caleb does some of everything at The Drive. And he really, really loves trucks.




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Audi strengthens SAIC ties to grow Chinese sales https://engineicon.com/audi-strengthens-saic-ties-to-grow-chinese-sales/ Wed, 22 Apr 2026 05:05:54 +0000 https://engineicon.com/audi-strengthens-saic-ties-to-grow-chinese-sales/

AUDI is reportedly set to strengthen its partnership with Chinese state-owned manufacturer SAIC as it works to ensure future models launched under the co-owned brand will appeal to new and younger buyers in the market.

 

Speaking with Automotive News Europe this week, the German manufacturer said the AUDI all-electric brand (spelt with A-U-D-I lettering and without the four-ringed logo), launched in 2024, will evolve to create a new innovation and technology centre in Shanghai, helping the sub-brand better tailor vehicles to meet the needs of Chinese buyers.

 

The China-only AUDI sub-brand launched its E5 Sportback at Shanghai’s Auto China 2025 exhibition and will debut a second model, the E7X (SUV), at next week’s Audi China 2026 in Beijing.

 

The move comes as German automotive manufacturers seek to deepen their production and development footprint in China in response to slowing sales and fierce competition with domestic brands.

 

It’s a plan that already appears to be proving worthwhile with sales of close to 10,000 units of the E5 Sportback registered so far.

 

The Audi E5 Sportback – which won China’s coveted Car of the Year Award in January – has composed the majority of Audi’s first-quarter sales in China this year, attracting new and younger buyers to a once-struggling European brand within the world’s largest car market.

 

with Automotive News Europe

 

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A Huge Chinese Diesel V-Twin Makes One Heck of a Go-Kart Motor https://engineicon.com/a-huge-chinese-diesel-v-twin-makes-one-heck-of-a-go-kart-motor/ Sun, 19 Apr 2026 03:55:37 +0000 https://engineicon.com/a-huge-chinese-diesel-v-twin-makes-one-heck-of-a-go-kart-motor/

Today’s Internet is in many ways a disappointment, but at least it’s still great for shopping. Somewhere in the depths of Ali Express is a listing for a massive V-twin diesel engine, which the YouTubers at CarsandCameras recently bought and grafted to a go-kart.

The 2V98FDE displaces 1,300 cc, produces 26.8 horsepower, and revs to 3,600 rpm—all in a package that weighs 244 pounds dry and cost $1,999.73 at the time of purchase. The specs listed on the website, the crate, and the engine itself differed; the V-twin actually had to be dropped on a scale to confirm its weight. That’s not the only way Ali Express lived down to expectations. The engine took months to arrive, and when it did, there were holes in the cardboard sides of its crate. The engine also wasn’t bolted down for shipping.

1,300-cc diesel V-Twin next to a 400-cc diesel
CarsandCameras via YouTube

Today’s Chinese auto industry defies stereotypes of shoddy workmanship, but this engine is a reminder of where those stereotypes came from. It had poorly-cast parts, bits of still-wet Loctite, overspray, and the manufacturer’s name on the valve covers was upside down. A random bolt piercing the intake manifold probably isn’t great for airflow, but on the other hand the engine arrived with electric start, a supplementary electric fuel pump, and an emergency valve lifter to prevent runaway combustion.

It also fired right up, but that still left the issue of how to fit it into a go-kart. For perspective, the kart came with a 98cc engine (although it had a 400cc diesel fitted for a previous built) and 670cc is about as big as kart engines usually get. Full of fluids and with the kart’s CVT attached, the Chinese diesel weighed about 300 pounds by itself. That’s nearly as much as a conventional go-kart with a rider.

We Bought a GIANT Diesel V Twin from China and Put It on a Go Kart! thumbnail

We Bought a GIANT Diesel V Twin from China and Put It on a Go Kart!

To get the V-twin to fit, the kart’s rear axle was moved back six inches. The engine itself sits on a subframe and steel plate reinforced with angle iron. Mounted in the kart, it’s about as tall as a seated rider. But 26.8 hp and diesel-style torque delivery lets you spin the tires pretty much at will. And despite the lack of quality control on the part of the manufacturer, the V-twin seemed to run okay. The main issue was the transmission, which needed some modifications to ensure full engagement.

CarsandCameras thinks the V-twin is powerful enough to propel a car, although such a swap would probably be more about hypermiling than speed (a bit like this Chevy S-10 diesel build). Or maybe it would be better to see how much work this diesel could do. A go-kart tractor pull would be pretty awesome.

Stephen has always been passionate about cars, and managed to turn that passion into a career as a freelance automotive journalist. When he’s not handling weekend coverage for The Drive, you can find him looking for a new book to read.


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Chinese MIIT reveals the new XPeng Mona L03 ahead of its debut https://engineicon.com/chinese-miit-reveals-the-new-xpeng-mona-l03-ahead-of-its-debut/ Sat, 11 Apr 2026 01:48:35 +0000 https://engineicon.com/chinese-miit-reveals-the-new-xpeng-mona-l03-ahead-of-its-debut/

On April 9, 2026, the public got its first real look at the new XPeng Mona L03. This is the first SUV to join the Mona family – XPeng’s dedicated brand for buyers who want a great car without spending a fortune. The Mona L03 is a five-seat vehicle that takes the sporty style and mixes it with the space of a family SUV. XPeng is hoping this model will be just as successful as their first Mona car, the M03 sedan.

If you look at the Mona L03, you will notice it has a coupe-like design, which means the roof slopes down toward the back like a sports car. The front of the car has “T” shaped headlights that make it look modern and maybe even a little bit angry. It has semi-hidden door handles and a front bumper with an active grille to help it with air resistance.

The all-new XPeng Mona L03 - source: MIIT China
The all-new XPeng Mona L03 – source: MIIT China

The Mona L03 is a mid-sized SUV. XPeng filed paperwork for two different versions of the car – one version is 183.1 inches long, and the other is 183.9 inches long – the difference is due to different bumper designs. Both versions are 75.6 inches wide and 63 inches tall. The car has a wheelbase of 112.2 inches. The car weighs about 4,090 lb – nothing unusual for an EV since batteries are quite heavy.

The wheels on the Mona L03 also come in two sizes. You can get 18-inch wheels with 225/60 R18 tires or larger 20-inch wheels with 245/45 R20 tires. The bigger wheels look cooler, but they might make the ride a little bumpier and will affect the range. XPeng also listed technical measurements for the overhangs – they range between 35 inches and 36.4 inches depending on which version of the car you are looking at.

The all-new XPeng Mona L03 - source: MIIT China
The all-new XPeng Mona L03 – source: MIIT China

Most electric cars in this price range use one motor, and the Mona L03 is no different. It uses a single electric motor made by Luxshare Precision Technology. The motor has a peak power of 183 kW. That is actually more power than the Mona sedan has. If you have a heavy foot, the Mona L03 can reach a top speed of 112 mph.

The battery inside the car is an LFP pack – Lithium Iron Phosphate. These batteries are popular because they usually last a long time and are safer than other types. The batteries are supplied by CALB – interestingly, XPeng did not use the “blade” batteries from BYD for this model, even though they use them in the sedan version. We do not know the exact capacity of the battery yet, but we expect it to provide plenty of range for daily driving.

The all-new XPeng Mona L03 - source: MIIT China
The all-new XPeng Mona L03 – source: MIIT China

XPeng loves technology, and the Mona L03 is packed with it. The car is covered in cameras. There are cameras on the front, the back, the mirrors, and even on the sides near the front wheels. These cameras are the “eyes” of the car. They help with driver-assistance features, which keep the car in its lane or even help with driving in busy cities. XPeng is sticking with a system that uses cameras instead of expensive LiDAR sensors and is using its own Turing AI chips.

Inside, passengers can look up through a large panoramic glass roof. It makes the cabin feel big and bright. For people who like to customize their cars, XPeng is offering a lot of options. You can choose different brake calipers, add a rear spoiler or even change the trim on the bumpers.

Optional equipment for the all-new XPeng Mona L03 - source: MIIT China
Optional equipment for the all-new XPeng Mona L03 – source: MIIT China

The Mona L03 is expected to be priced right in the middle of XPeng’s lineup. We believe it will cost around RMB 150,000, which is about £16,000. For comparison, the smaller Mona M03 sedan starts at RMB 119,800 (£12,700). The bigger XPeng G6 SUV starts at RMB 176,800 (£18,900). By pricing the L03 in the middle, XPeng is targeting families who need more space than a sedan can offer, but don’t want to pay the higher price of the G6.

The timing for this launch is very important. In March 2026, XPeng delivered 27,415 vehicles. While that is a lot of cars, it was actually 17% lower than the year before. The company needs the Mona L03 to be a hit to get their numbers back up. The Mona M03 sedan is a huge success, selling over 175,000 units in 2025 alone.

Various options for the all-new XPeng Mona L03 - source: MIIT China
Various options for the all-new XPeng Mona L03 – source: MIIT China

But XPeng isn’t just thinking about China. The CEO, He Xiaopeng, has said he wants to bring the Mona brand to Europe and other parts of the world later in 2026. This means we might see the Mona L03 on roads far away from its home very soon. As the second model in the Mona line, it has big shoes to fill, but if it can match the popularity of the M03 sedan, XPeng will have a very busy year.

Via

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Chinese EV brand shakeout imminent: BYD https://engineicon.com/chinese-ev-brand-shakeout-imminent-byd/ Fri, 10 Apr 2026 02:21:42 +0000 https://engineicon.com/chinese-ev-brand-shakeout-imminent-byd/

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.

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Stellantis explores more Chinese partnerships https://engineicon.com/stellantis-explores-more-chinese-partnerships/ Thu, 19 Mar 2026 00:51:22 +0000 https://engineicon.com/stellantis-explores-more-chinese-partnerships/

MEDIA reports say beleaguered Stellantis is exploring potential partnerships with Chinese car-makers as it seeks to strengthen its struggling European business amid rising competition and the ongoing shift to electrification.

 

Separately, the manufacturer is said to considering a deeper collaboration on EV and software technology with its existing Chinese partner Zhejiang Leapmotor Technology Co.

 

According to Bloomberg, the automotive giant has held discussions with other Chinese technology and EV companies including Xiaomi and Xpeng, examining options that could involve investment into its European operations or closer collaboration on manufacturing and technology.

 

For its part, Stellantis has not confirmed any specific plans but acknowledged it “routinely engages with global industry players”.

 

“As part of its normal course of business, Stellantis holds discussions with a range of industry players around the world on various topics,” the company said in a statement.

 

Bloomberg’s report says the talks highlight the challenges facing Stellantis in Europe, where its brands – including Fiat, Peugeot and Opel – are contending with overcapacity, intensifying competition, and the high cost of transitioning to electric vehicles.

 

Chinese manufacturers are rapidly gaining ground in the region, leveraging strong EV technology, and cost advantages developed in their domestic market.

 

A potential partnership could provide Stellantis with improved access to advanced EV and software technology, while also helping to better utilise its European production capacity.

 

In return, Chinese carmakers would gain greater access to the European market, which has become an attractive export destination.

 

According to the report, the discussions come as Stellantis increasingly prioritises investment in North America, where it has committed around $US13 billion ($A20b) to new products and technologies.

 

On a positive note, the company has seen improving demand for key brands such as Jeep and Ram, while regulatory and political conditions in the US make collaboration with Chinese firms more complex.

 

By contrast, Europe remains a more open environment for Chinese investment, despite the introduction of tariffs on some imported electric vehicles.

 

Industry observers say this divergence could lead to greater separation between Stellantis’ regional operations, although the company has rejected suggestions it is considering a formal split.

 

Stellantis states categorically that there is no truth in the suggestion that it is considering a plan to split the company.

 

Against that, reports indicate discussions have included the possibility of Chinese partners taking stakes in parts of Stellantis’ European operations, potentially involving brands such as Maserati.

 

No agreement has been reached however, and there is no certainty that any deal will proceed.

 

For background, Stellantis has recently faced a challenging period financially with its share price declining significantly over the past two years.

 

The company recently announced €22.2 billion ($A37b) in charges and write downs, partly linked to scaling back aspects of its electric vehicle strategy.

 

Bloomberg says the broader automotive transition has also proven uneven, with EV adoption slowing in some markets including parts of Europe and the United States.

 

At the same time, traditional carmakers continue to trail Chinese rivals in battery technology and production costs.

 

“Stellantis is already exploring deeper collaboration with its existing Chinese partner Leapmotor, focusing on affordable EVs and software development for European markets,” the report said.

 

“The company is expected to outline more details on its future strategy at an investor day scheduled for 21 May in the US

 

“For now, Stellantis appears to be weighing a more flexible, partnership-driven approach in Europe as it navigates an increasingly competitive and rapidly evolving global automotive landscape.”

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Chinese scientists build new electric car batteries from plastic https://engineicon.com/chinese-scientists-build-new-electric-car-batteries-from-plastic/ Sat, 21 Feb 2026 21:11:23 +0000 https://engineicon.com/chinese-scientists-build-new-electric-car-batteries-from-plastic/

The batteries that we use to power electric vehicles rely on heavy metals like cobalt and nickel. Unfortunately, these metals are hard to find, are expensive, and often come from places with poor working conditions. But a new study published on February 18, 2026, shows that we might be able to trade those heavy metals for something much lighter and more common: organic polymers.

Professor Xun Yinhua from Tianjin University and Professor Huang Fei from South China University of Technology led the team of scientists. Their work, featured in the journal Nature, describes a new kind of “organic” battery. Instead of the usual metal-filled parts, this battery uses a special plastic-like material called PBFDO, which acts as the cathode.

Chinese scientists build better electric car batteries from plastic

Most EVs today use batteries that are sensitive to the weather. If it gets too cold, they lose power. If it gets too hot, they can become dangerous. This new organic battery is different. It can work in temperatures as low as -94°F and as high as 176°F. This massive working range means an electric car could start easily in a freezing Arctic winter or drive through a scorching desert without any trouble.

The researchers built real “pouch cells,” which reached an energy density of 250 Wh/kg. That’s as much energy as the high-tech batteries found in many electric cars on the road today. Usually, when scientists try to use organic materials, the batteries are too weak, but this time, they proved that an organic battery can actually keep up with the current tech.

Chinese scientists build better electric car batteries from plastic

Traditional lithium batteries can catch fire if they get pierced or crushed in an accident. The team of scientists put their new battery through some serious tests, including driving a needle straight through it. The battery didn’t smoke, it didn’t catch fire, and it didn’t change shape.

Because the PBFDO material is a polymer, it is also very flexible. The researchers found they could bend, stretch, and squish the battery without breaking it. This is great news for the future of car design. Instead of a giant, heavy box under the floor, future batteries might be able to fit into different shapes or even be part of the car’s frame.

Chinese scientists build better electric car batteries from plastic

One of the best things about this discovery is where the materials come from. Cobalt and nickel are hard to get out of the ground, but organic polymers are made from common molecules that are easy to find. This makes the batteries much more sustainable.

The new technology is still in the prototype stage, but it fits perfectly with where the car world is going in 2026. Many car companies are already planning to show off new kinds of batteries this year – some are looking at solid-state batteries, and others are interested in using sodium. The organic polymer pathway is another tool that could make cars cheaper and easier to build.

Via

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U.S. Officials Blast Canada’s Cheap Chinese EV Deal https://engineicon.com/u-s-officials-blast-canadas-cheap-chinese-ev-deal/ Mon, 19 Jan 2026 16:56:59 +0000 https://engineicon.com/u-s-officials-blast-canadas-cheap-chinese-ev-deal/

China’s advanced auto industry may be hitting some speed bumps at home, but it’s expanding overseas at warp speed. And lately it’s been a question of “when,” not “if,” those vehicles could ever come to the United States.

2026 already feels like some dominoes have begun to fall. You had the Geely Group’s strong showing at CES (and hints that a U.S. debut announcement could come in the next few years), President Donald Trump’s repeated openness to Chinese automakers setting up factories in the U.S., and now, a trade deal between Canada and China that will lower tariff barriers to Chinese EVs in America’s neighbor to the north. So where do things go from here?

The must-read morning roundup of EV and tech news.

Welcome back to Critical Materials, our morning roundup of auto industry and technology news. We’ll be diving more into the China trade deal today, along with why it’s good news for Tesla, and why this debate is caught up in the ongoing affordability crisis. Let’s dig in. 

25%: Canada’s EV Tariff Deal With China Puts The U.S., Auto Industry On Alert




Geely and Zeekr at CES 2026

Geely and Zeekr at CES 2026

Photo by: Patrick George

As we reported on Friday, the China-Canada deal is small for now—it’s capped at 49,000 cars for its first year, with expansion to 70,000 within five years. But it’s a start (or rather a restart, since it returns Canada to its pre-2023 tariff deal) to something potentially big: the growing expansion of Chinese EVs into North America. And as Canadian Prime Minister Mark Carney explicitly said, most of these imports will cost under $25,000 U.S. (about $35,000 CAD).

Naturally, not everyone is happy about what could be a threat to automotive jobs in North America. Sen. Brian Schatz, D-Hawaii, blamed the Trump administration’s strained relations with Canada, reports The Hill:

“We just got absolutely rolled in this Canada – China deal. A stark foreign policy failure with domestic economic consequences,” Schatz wrote in a post on social platform X. 

“The most basic principle in politics and geopolitics is loyalty to friends. And we weren’t just disloyal – we were hostile. So here we are,” he added.

President Donald Trump, for his part, appeared to give the deal a thumbs-up: “If you can get a deal with China, you should do that,” Trump told reporters. Other U.S. economic officials said Canada will ultimately regret the deal.

My colleague Kevin Williams has a good story about what’s at stake, and why leaders in the auto-producing parts of Canada are especially unhappy about the deal. And it brings plenty of concern among U.S. auto industry observers as well. From the Associated Press:

Chinese automakers will have to meet standards required for the Canadian auto market for the latest trade arrangement to be successful—standards that are similar to those in the U.S.—which is likely to incentivize Chinese auto manufacturing investment in Canada.

They’ll also have to establish which segment of the market they are targeting there: Higher-end vehicles, or less-expensive ones that sell at higher volumes.

Regardless, “It brings it home to what is needed to compete globally,” said Mark Wakefield, global automotive market lead at AlixPartners. The firm predicts Chinese brands will account for 30% of the global market by 2030.

“They’ve already started in Europe. They started in South America. Now Mexico and Canada,” Wakefield said. American carmakers “don’t want to end up as a Brazil with your ethanol-based cars that aren’t sellable anywhere else in the world and … like Britain or Australia that used to matter in the auto world, and no longer really matter.”

Emphasis mine above, because that is indeed a scary outcome for the U.S. auto industry.

Then again, if it brings more affordable hybrid and zero-emission options to North America—and the way things are potentially going, the U.S. included—and is that such a bad thing? Ultimately, North Americans will have to make a choice: affordability or loyalty to local production.

Unless, of course, our automakers can meet people halfway and get that $50,000 average new car price down considerably.

50%: The Canada-China Trade Deal Is Good News For Tesla




2026 Tesla Model 3 Standard

2026 Tesla Model 3 Standard

Photo by: Tesla

Tesla had a bad year in Canada in 2025, with sales dropping nearly 64% amid the U.S. trade war and CEO Elon Musk’s multiple controversies. But the China trade deal could be good news for the electric automaker: it builds a ton of cars in China, including ones it exports to Canada (unlike the U.S.)
And now, those just got a whole lot cheaper, potentially. Here’s Reuters with more:

While many Chinese automakers will be keen to seize the opportunity as they expand exports, Tesla has an advantage as it in 2023 already equipped its Shanghai plant, its biggest and most cost-efficient factory globally, to build and export a Canada-specific version of its Model Y.

The U.S. automaker had that same year started shipping the car from Shanghai to Canada, boosting Canadian imports of automobiles from China to its largest port, Vancouver, by 460% year over year to 44,356 in 2023.

But it was forced to stop in 2024 and switched to shipping from its U.S. and Berlin factories after Ottawa imposed 100% tariffs, citing a wish to counter what they called China’s intentional state-directed policy of overcapacity.

“This new agreement could allow resumption of those exports rather quickly,” said Sam Fiorani, vice president of research firm AutoForecast Solutions.

Now, to see if Canadians actually line up to buy those cars.

75%: Affordability Anxiety Will Define 2026’s Car Market




2027 Chevrolet Bolt

Photo by: Patrick George

But all of this, I’d argue, isn’t even a technology issue or a geopolitical one: it’s an affordability issue. The appeal of Chinese imports is that they’re good and they’re cheap—a combination that feels in short supply in the North American car market.

According to Automotive News, affordability anxiety was the overwhelming vibe at the 2026 Detroit Auto Show. And while carmakers may breathe a sigh of relief that they’re no longer under a regulatory gun to make tons of EVs now that fuel economy requirements have been eased, they can’t lean on super-expensive gas trucks to save the day like they used to:

“What’s holding the market back is certainly affordability and really the lack of low-priced vehicles,” said Michael Robinet, executive director of automotive consulting at S&P Global Mobility. “Not only in the United States, but around the world, this is a problem.”

Sen. Bernie Moreno, a former car dealer and member of the committee working to reschedule testimony from the Detroit 3 CEOs, said the Trump administration is easing regulations to help bring down vehicle costs and that automakers also have a role to play. The government is rolling back emissions standards and in September eliminated a $7,500 tax credit that had greatly fueled EV demand.

It now takes about 36 weeks of median income to buy an average new vehicle, according to Cox Automotive data. That’s down from 42 weeks three years ago but not necessarily a sign affordability has significantly improved, Cox Executive Analyst Erin Keating said.

“Even with affordable vehicles out there, fewer buyers are buying. The consensus is that this shift isn’t temporary. … That’s one reason dealer sentiment reflects concern. The missing customers aren’t sidelined. They’re essentially excluded.”

So how do they plan to meet the moment? According to that story, Jeep and Ram parent company Stellantis is preparing more models priced under $40,000 and even $30,000 (though I’ll believe the latter when I see it) and even Ford said it might consider making sedans again after canceling all of them in 2020.

One bright spot for EV fans: the falling costs of batteries should make electric power more affordable. But clearly, the demand is there for new cars that won’t break the bank. And if the familiar automakers won’t deliver, it seems China Inc. is ready to.

100%: How Much Does It Matter To You Where Your Car Is Made?




Zeekr 9x

Photo by: Zeekr

I have owned Toyotas made in the United States, a Chevrolet and a Mazda made in Mexico, and a Kia made in South Korea (that’s now made in Georgia instead), among other things. I can’t say that production origin means all that much to me in a globalized world.

So is that a priority for you when you buy a car? Sound off in the comments. 

Contact the author: patrick.george@insideevs.com

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