Japanese automaker’s reluctance to go all-electric is already taking a toll on the nation’s auto industry. Mitsubishi Motors revealed this week it’s suspending operations in China due to its inability to keep up as EVs continue to take over the market.
China continues to lead the industry in the transition to EVs. Information from the China Association of Automobile Manufacturers (CAAM) shows battery electric passenger vehicle (BEV) sales reached over 2 million through the first five months of the year, up 51.5% YOY.
Meanwhile, CAAM reported sales of gas-powered dropped by 7% through the same period. Many analysts believe the momentum will continue.
Bank of America Securities’ head of Asia Pacific basic materials, Matty Zhao, sees China’s EV market growing another 27% this year, reaching 32% of overall auto sales, up from 26% last year. Some are predicting that number can grow to 50% in the next two years.
The shift comes after the Chinese government supported the transition with tax breaks for EV buyers, subsidies, and other policies that sparked growth in domestic EV makers.
Perhaps more importantly, China is making it harder to buy gas vehicles. The nation is implementing stricter vehicle emissions standards, pressuring automakers to transition their lineups and clear ICE vehicle inventory.
The new rules will ban production, sales, and imports of vehicles that do not comply, pressuring domestic and foreign automakers to go electric.
(Source: Mitsubishi)
Mitsubishi, Japanese EV laggards fall behind in China
According to a memo released this week (via Bloomberg) making the rounds on Chinese social media, Mitsubishi’s sales have fallen drastically as China’s auto market moves to EVs, causing the automaker to suspend operations in China indefinitely.
The memo states:
In the past few months, management and shareholders have tried to the best of our ability, but due to market conditions and with great reluctance and regret, we must seize the opportunity to transition to new energy vehicles. The company will resurrect after going through trials and tribulations.
Mitsubishi cited China’s transition from ICE vehicles to EVs as the reason why sales are falling, coming in well below expectations.
Mitsubishi sales in China (Source: Bloomberg)
After peaking in 2019 at around 134,500, Mitsubishi’s sales have nearly vanished in the region, with only 34,500 sold this past year. Its sole EV, the Airtrek electric SUV, sold only 515 units.
And Mitsubishi is not the only Japanese automaker feeling the heat after dragging its feet on EV tech.
Mitsubishi Airtrek EV (Source: Mitsubishi)
Honda, Mazda, and Nissan’s sales have fallen for at least two years, and in 2022, Japan’s largest automaker, Toyota, saw sales decline for the first time in a decade.
Mazda CEO Masahiro Moro echoed Mitsubishi’s statement on China, saying this week, “Production output will be low for the time being while pressure on profits is increasing.” Although Mazda doesn’t plan to scale back, he said, “The important thing is to turn the tide and introduce electric vehicles one by one.”
Seeing the success EV makers like Tesla and BYD are having, nearly all Japanese automakers (almost all legacy automakers, in fact) have advanced plans to go electric.
Mitsubishi xEV models (Source: Mitsubishi)
Mitsubishi revealed plans in March to electrify its entire lineup by 2035, including four new EVs. Honda overhauled its business operations to ramp up EV efforts earlier this year. Nissan accelerated its strategy in February. And Toyota is now planning its own dedicated EV platform and next-gen batteries that are expected to improve range and efficiency.
To help boost domestic battery output, the Japanese government is awarding nearly 120 billion yen ($847 million) to fuel Toyota’s battery development plants.
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While much of the Western world is still figuring out how to get more people on electric bikes, China just flipped a switch, and the results are staggering. Thanks to a generous nationwide trade-in program rolled out around six months ago, China has seen an explosive surge in electric bicycle sales, with over 8.47 million new e-bikes hitting the road in the first half of 2025 alone.
The program, which offers subsidies to riders who trade in their old, often outdated electric bikes for newer, safer, and more efficient models, has sparked a new e-bike sale boom in a country already dominated by e-bike travel. In major provinces like Jiangsu, Hebei, and Zhejiang, over one million new e-bikes were sold in each region in just six months. That’s a tidal wave of e-bike sales.
The incentives vary depending on location and the model being traded in, but for many consumers, the subsidies cover a substantial portion of a new e-bike’s price – enough to turn a “maybe next year” purchase into a “right now” upgrade. And these aren’t just budget bikes either. The program has driven demand for higher-quality models with better batteries, safer braking systems, and more reliable electronics, accelerating both adoption and innovation across the industry.
The move has proven successful in replacing the millions of older models with lower-quality lithium-ion batteries that had posed safety risks around the country. Instead, China has pushed for higher-quality lithium-ion batteries, a return to a newer generation of higher-performance AGM batteries, and even interesting new sodium-ion battery options.
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Most e-bikes in China look more like what we’d consider seated scooters
According to China’s Ministry of Commerce, more than 8.4 million consumers have participated in the e-bike trade-in program so far, contributing to a sales increase of 643.5% year-over-year and more than doubling sales month-over-month. Meanwhile, production of new electric bicycles rose by nearly 28%, as manufacturers scrambled to meet demand. The sales boosts have already been seen in the financial reports of major industry players like NIU.
And it’s not just the big players benefiting – over 82,000 small independent e-bike dealers reported average sales increases of ¥302,000 (around US $42,000), giving a serious boost to local economies.
What’s particularly striking here is how fast this happened. The program was officially launched late last year as part of a broader effort to stimulate domestic consumption and phase out outdated vehicles and appliances. But while most analysts expected gradual growth, the e-bike sector responded much more quickly. In less than a year, the trade-in subsidies have reshaped the electric bicycle market, creating a consumer-driven boom that shows no signs of slowing.
For those of us watching from outside China, it’s hard not to wonder what might happen if other countries tried something similar. While most families in Chinese cities already own an electric bike and thus see this as an opportunity to trade it in for a newer model, Western countries like the US are still figuring out how to stimulate commuters into buying their first e-bike.
It’s too soon to know exactly how long the boom will last or whether the momentum will carry into 2026 and beyond. We’ve seen bicycle industry bubbles grow and burst before. But one thing’s clear: with the right incentives, even modest ones, it’s possible to ignite real, large-scale change. China just proved it with nearly 8.5 million new e-bikes to show for it.
And if you’re wondering what it looks like when a country takes electric micromobility seriously, this is it.
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Today was the official start of racing at the Electrek Formula Sun Grand Prix 2025! There was a tremendous energy (and heat) on the ground at NCM Motorsports Park as nearly a dozen teams took to the track. Currently, as of writing, Stanford is ranked #1 in the SOV (Single-Occupant Vehicle) class with 68 registered laps. However, the fastest lap so far belongs to UC Berkeley, which clocked a 4:45 on the 3.15-mile track. That’s an average speed of just under 40 mph on nothing but solar energy. Not bad!
In the MOV (Multi-Occupant Vehicle) class, Polytechnique Montréal is narrowly ahead of Appalachian State by just 4 laps. At last year’s formula sun race, Polytechnique Montréal took first place overall in this class, and the team hopes to repeat that success. It’s still too early for prediction though, and anything can happen between now and the final day of racing on Saturday.
Congrats to the teams that made it on track today. We look forward to seeing even more out there tomorrow. In the meantime, here are some shots from today via the event’s wonderful photographer Cora Kennedy.
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The numbers are in and they are all bad for Tesla fans – the company sold just 5,000 Cybertruck models in Q4 of 2025, and built some 30% more “other” vehicles than it delivered. It just gets worse and worse, on today’s tension-building episode of Quick Charge!
We’ve also got day 1 coverage of the 2025 Electrek Formula Sun Grand Prix, reports that the Tesla Optimus program is in chaos after its chief engineer jumps ship, and a look ahead at the fresh new Hyundai IONIQ 2 set to bow early next year, thanks to some battery specs from the Kia EV2.
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