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As many rivals are being squeezed out of China by low-cost EVs, Hyundai has a plan to fend off the competition. According to a new report, Hyundai is pouring resources into launching its first dedicated EV in China, due out next year.

Although electric vehicle sales continue climbing in China, the largest EV market globally, many legacy automakers are struggling to stay afloat.

According to the latest figures from the China Association of Automobile Manufacturers (CAAM) (via S&P Global), China sold a record 1.29 million new energy vehicles (EVs and PHEVs) in September, up 17% from August and 42% year over year.

As ICE cars continue falling out of favor, EV sales surpassed gas-powered car sales for the second consecutive month, with a 51.8% share of total vehicle sales last month.

Those who have been slow to transition are feeling the heat. Toyota, Volkswagen, GM, Honda, and others have all cut jobs in China as the market rapidly shifts to electric vehicles.

Hyundai has been no exception. Beijing Hyundai’s sales have been slumping since 2017. Through September, Korean automaker’s share of the China market dropped to just 1.2%.

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Hyundai Casper Electric (Source: Hyundai)

However, Hyundai believes it can defy the market and turn things around. On October 18, Hyundai Motor China Advanced Tech and R&D Center became independent in Shanghai. The facility is Hyundai’s first overseas digital R&D center and will spearhead the automaker’s return.

Hyundai to launch EVs in China to fend off low-cost rivals

Yang Feng, the general manager of Hyundai’s new research and development facility, said in an interview with Shanghai news outlet Jiemian News that the company is launching its first dedicated EV for China next year.

Unlike other EVs, the dedicated model will be exclusively designed for buyers in China and will feature advanced new tech and designs.

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Hyundai at the Beijing Auto Show 2024 (Source: Hyundai Motor)

Yang Feng, the first employee recruited by Hyundai China’s advanced tech R&D center, said the facility combines self-development with cooperation with local suppliers. It also includes leading tech suppliers.

According to local reports, Hyundai is partnering with Thundersoft, a smart cockpit provider, and Jianzhi Robotics, an intelligent driving supplier in China, to power its next-gen EVs.

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2025 Hyundai IONIQ 5 Limited interior (Source: Hyundai)

Although Yang Feng admitted that Hyundai has struggled in recent years, the company hopes that by fusing its manufacturing expertise with local tech, it can quickly catch up with domestic automakers. Hyundai could even develop exclusive EV platforms for China.

Even some foreign brands that are pulling out of China now to protect profits will return for its smart tech, according to Fang Yinliang, McKinsey global director and partner.

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Kia EV3 (Source: Kia)

“Whether it is foreign-funded auto brands or parts manufacturers, their investment in the Chinese market is likely to increase,” Yinliang explained. It’s not just about setting up R&D centers but investing in innovative Chinese companies “which will feed back to the global market.”

The tech from its new R&D center in China is not only expected to help boost sales in the region but could also be used for Hyundai and Kia’s global exports.

Electrek’s Take

Despite aggressive global expansion plans, Hyundai has had a minor presence in China. The automaker believes its new advanced tech R&D center will help turn things around quickly, with its first dedicated EV launching next year.

Hyundai is not the only automaker looking for China’s EV tech. Volkswagen expanded its partnership with XPeng with plans to launch the first co-developed EV for China in 2026.

Mercedes-Benz is investing heavily to launch a new intelligent driving EV (end-to-end capabilities) in 2026.

With Chinese automakers now looking overseas for growth in key markets like Europe, Southeast Asia, and Latin America, Hyundai and others are looking to launch a counterattack.

Source: Jiemian News

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Ford dealers told to brace for EV rush as incentive cutoff nears

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Ford dealers told to brace for EV rush as incentive cutoff nears

With the federal EV incentive set to expire at the end of September, Ford is urging its dealers to prepare for a rush of buyers.

Ford warns dealers of upcoming EV rush

Like most automakers, Ford is preparing for a shakeup under the Trump Administration. After the “One Big Beautiful Bill” was signed into law on July 4, the $7,500 and $4,000 tax credit for new and used EVs will no longer be available after September 30.

In a memo sent to dealers this week, Ford warned, “demand is expected to increase as the deadline approaches for eligible vehicles.”

The letter (via CarsDirect) confirmed that the EV tax credit “will no longer be available for vehicles acquired after September 30, 2025.”

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Ford blamed Trump’s new bill for the expected rush of EV buyers ahead of the incentive deadline. Although the Mustang Mach-E doesn’t qualify for the credit, since it’s built in Mexico, Ford is passing it on through a leasing loophole. While it’s still available, the F-150 Lightning does qualify for the credit when purchased or leased.

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2025 Ford Mustang Mach-E (Source: Ford)

Last week, Ford launched its new “Zero, Zero, Zero” summer sales promo, offering a $0 down payment, 0% interest for 48 months, and zero payments for the first 90 days on most Ford and Lincoln vehicles.

The new campaign replaces the employee pricing for all campaign, which ran through the first half of the year. Despite outpacing the industry with overall sales rising 14% in Q2, Ford’s EV sales fell by nearly a third.

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Ford Mustang Mach-E (left) and F-150 Lightning (right) (Source: Ford)

Ford spokesperson Martin Gunsberg told Electrek that electric vehicle sales were lower due to the Mustang Mach-E recall and the transition to the 2025 model year. “Our dealers can’t sell what they don’t have,” Gunsberg said.

Although the Mach-E doesn’t qualify for the credit when purchased, it’s still one of the best EV lease deals available right now, starting at $395 per month. The offer is for 36 months with no down payment required.

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2025 Ford F-150 Lightning (Source: Ford)

Ford isn’t the only one preparing for big changes over the next few months. Honda extended its ultra-low lease offer on the Prologue until the end of September. Hyundai and Kia are slashing prices with generous discounts ahead of the deadline. The 2025 Hyundai IONIQ 5 might be the best EV deal at just $179 per month right now.

Looking to snag the savings while they are still available? You can use our links below to find deals on top-selling electric vehicles in your area.

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Tesla engineer admits Tesla didn’t maintain Autopilot crash records amid trial over fatal crash

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Tesla engineer admits Tesla didn't maintain Autopilot crash records amid trial over fatal crash

A Tesla engineer admitted in court that Tesla didn’t maintain Autopilot crash records before 2018, 3 years after launching the ADAS system, in a trial over the death of a bystander in a crash involving Autopilot.

Tesla is currently on trial in Miami over a crash involving a 2019 Tesla Model S that was operating on Autopilot.

The case attempts to place some responsibility on Tesla for creating complacency with drivers, who were led to believe Autopilot could do more than it actually could.

George McGee was driving his Model S on Autopilot in Key Largo in April 2019 when he dropped his phone and looked down to pick it up when the car blew past a stop sign at a T intersection, and crashed into a parked Chevrolet Tahoe.

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22-year-old Naibel Benavides Leon and her boyfriend Dillon Angulo were standing next to the parked Tahoe. Benavides died and Angulo was seriously injured.

The police charged McGee with reckless driving, but the families of the victims sued both McGee and Tesla. McGee settled with the plaintiffs, but Tesla hasn’t.

The automaker has been sued many times over fatal crashes related to its Autopilot and Full Self-Driving systems. Recently, Tesla settled a few of those lawsuits, but this one is the first to make it to trial.

The plaintiffs allege that Tesla’s communications regarding Autopilot have led drivers, such as McGee, to become complacent and use Autopilot in a manner that led to this crash. They also claim that Tesla misrepresented the safety of Autopilot and failed to deploy proper driver monitoring to ensure its safe use.

The trial started on Monday and on Thursday, the jury heard testimony from Tesla software engineer Akshay Phatak who said that Tesla didn’t even complete records of Autopilot crashes before March 2018 (via Law360):

At the end of the first day of testimony, jurors watched part of the videotaped deposition of Tesla software engineer Akshay Phatak in which he said Tesla did not maintain records before March 2018 for evaluating whether it was safer to operate Tesla vehicles with the autopilot engaged or shut off.

When asked if Tesla maintained records or data before 2018 that kept track of the number of crashes that occurred per vehicle mile driven with the autopilot engaged, he replied simply, “No.”

That’s despite Tesla launching Autopilot almost 3 years prior. The jury will hear more of Phatak’s deposition today after Tesla attempted to keep it out of court over claims that it contains “sensitive trade secrets.”

Plaintiffs also challenged Tesla’s Autopilot safety report. We previously highlighted how Tesla suddenly stopped reporting the statistics and only started again a year later, while updating older data.

Dr. Mendel Singer testified on Tuesday and highlighted the discrepancy:

He noted that Tesla offered corrections to the vehicle safety report in January 2023 after finding some errors and miscounts. The crash data for when the autopilot was on stayed about the same, but the crash rate for when the autopilot was off went up by about 50% in the updated report, he said.

Mary Cummings, a professor and director of the Autonomy and Robotics Center at George Mason University and a longtime critic of Tesla’s self-driving efforts, is expected to testify today.

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Redwood is repurposing GM’s EV batteries into energy storage

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Redwood is repurposing GM's EV batteries into energy storage

General Motors and Redwood Materials are joining forces to take EV battery tech beyond the road and onto the grid. The two companies just signed a non-binding memorandum of understanding that sets the stage for turning both new and second-life GM batteries into energy storage systems to support the US’s rising electricity demand.

The collaboration aims to help the grid keep up with the surge in power-hungry applications, from AI data centers to electrified transport and industry.

“The market for grid-scale batteries and backup power isn’t just expanding, it’s becoming essential infrastructure,” said Kurt Kelty, GM’s VP of batteries, propulsion, and sustainability. “Electricity demand is climbing, and it’s only going to accelerate… GM batteries can play an integral role.”

Redwood launched a new venture in June called Redwood Energy that repurposes both new and used EV battery packs into fast and cost-effective energy storage systems. Today’s announcement allows Redwood to use second-life batteries from GM EVs and new GM battery modules to create US-built energy storage systems.

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This isn’t just a future plan – it’s already happening. GM’s repurposed EV batteries are currently powering the biggest second-life battery project in the world. Located in Sparks, Nevada, Redwood’s 12MW/63MWh installation is also the largest microgrid in North America and supports Crusoe, an AI infrastructure company.

“Electricity demand is accelerating at an unprecedented pace,” said JB Straubel, Redwood’s founder and CEO. “Both GM’s second-life EV batteries and new batteries can be deployed in Redwood’s energy storage systems, delivering fast, flexible power solutions.”

And the timing couldn’t be better. AI data centers alone are expected to triple their share of US electricity use, from 4.4% in 2023 to 12% by 2028. That’s driving the urgent need for scalable, domestic energy storage.

GM and Redwood Materials say they’ll share more details on their plans later this year.

Read more: Arizona brings a huge grid battery online ahead of peak demand


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