It’s official. BYD is launching its first kei car. The new electric car is BYD’s smallest EV yet, and it’s expected to arrive next year with a starting price under $18,000. After it was spotted testing again, we are learning a little more about what to expect.

BYD’s smallest EV is coming in 2026

Kei cars, or K-Cars, as they are often called, are one of the most popular types of vehicles in Japan. They are the smallest street-legal passenger vehicles you can buy in the country.

To be classified as a kei car, the vehicle must be less than 3.4 m (134″) long, 1.48 m (58″) wide, and 2 m (79″) tall.

BYD’s smallest EV, and top-selling, is currently the Seagull (sold as the Dolphin Surf and Mini overseas), measuring 3,780 mm in length (148.8″).

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We caught a glimpse of the new electric Kei car for the first time in May after it was spotted testing on public roads. Like many kei cars, including the Honda N-Box, Japan’s top-selling vehicle, BYD’s tiny EV has that quirky, upright, boxy design.

After being recently spotted parked at a test facility, new spy photos provide a closer look, including a sneak peek of the interior.

The new images, posted by ThinkerCar, show essentially the same kei car we saw in May. It’s a right-hand-drive vehicle, suggesting it will launch in Japan, the UK, parts of Southeast Asia, and possibly other regions.

#BYD K-Car spy shots reveal a four-door layout with sliding rear doors. The vehicle is expected to launch in #Japan in H2 2026, with a starting price of RMB 130,000.
It will feature a 20 kWh battery offering 180km range (WLTC), heat pump AC system, and 100 kW fast charging… https://t.co/B2P05I5RAp pic.twitter.com/wYGtoC3yJk

— ThinkerCar (@thinkercar) July 16, 2025

For the first time, the interior is shown. Like BYD’s other vehicles, there’s a large floating infotainment screen at the center.

The electric car is expected to feature a 20 kWh battery, providing a WLTP range of 180 km (112 miles). It will also support DC charging speeds of up to 100 kW.

BYD’s Dolphin Surf (Seagull EV) is available with two battery packs: 30 kWh and 43.2 kWh, offering WLTP ranges of 137 miles and 189 miles, respectively.

By using LFP batteries from its battery unit, FinDreams, BYD could have the upper hand with costs. The Kei car is expected to launch in Japan in the second half of 2026 with a starting price of 2.5 million yen, or under $18,000. In comparison, the Nissan Sakura, Japan’s top-selling electric vehicle, starts at 2.59 million yen.

Earlier this year, Nikkei reported that Japanese automakers are already preparing for its arrival. A Suzuki dealer explained that “Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan.”

Can BYD’s smallest EV find a foothold in Japan? Domestic brands like Toyota, Honda, and Nissan have long dominated the market. Check back soon for the latest updates.

Source: TheDriven, ThinkerCar

Tesla has launched a long list of new discounts and incentives for its electric vehicles in the US as it seeks to capitalize on what will likely be its last strong quarter in its best market.

Since the beginning of the year, we have been reporting on how Tesla’s sales are declining in its largest markets, including Europe and China, with the US being the notable exception.

With the federal tax credit for electric vehicles set to expire by the end of the quarter, the US is also expected to become a challenging market for Tesla and electric vehicles in general.

Many electric automakers are trying to take advantage of the demand being pulled forward into Q3 due to the imminent end of the tax credit.

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Tesla has introduced several new incentives that can be combined with one another. Here’s the full list:

All New Tesla Vehicles

• $7,500 Lease Incentive (delivery by Sept 30)
• $1,000 Off for American Heroes (military, first responders, teachers, students)
• Free 1-Month Full Self-Driving (Supervised) Trial
• Free Full Self-Driving (Supervised) Transfer from your current Tesla
• Premium Connectivity Trial
  • 30 days for Model 3 and Y
  • 1 year for Model S, X, and Cybertruck

Model Y

• $7,500 Lease Incentive
• One Free Upgrade on select inventory (pre-discounted)
• $7,500 Federal Tax Credit at Point of Sale (cash/finance only)
• Lease from $349/mo (24-month) or $399/mo (36-month) with $3,000 down
• APR Financing: 3.49% up to 60 months
• 18 Months Free Supercharging (cash purchases only)

Model 3

• $7,500 Lease Incentive
• One Free Upgrade on select inventory (pre-discounted)
• $7,500 Federal Tax Credit at Point of Sale (cash/finance only)
• Lease from $299/mo (24-month) or $349/mo (36-month) with $3,000 down
• 0% APR Financing with FSD (Supervised), 2.49% without

Model X

• $7,500 Federal Tax Credit at Point of Sale
• One Free Upgrade with FSD (Supervised)
• Premium Connectivity Trial (1 year)

Model S

• One Free Upgrade with FSD (Supervised)
• Premium Connectivity Trial (1 year)

Cybertruck

• $7,500 Federal Tax Credit at Point of Sale
• 0% APR Financing with FSD (Supervised)
• Free 20″ Cyber Wheel Upgrade ($3,500 value) on lease orders
• Premium Connectivity Trial (1 year)

Electrek’s Take

It looks like Tesla is now relying less on 0% APR, likely due to the fact that now interest on car payments is deductible up to $10,000.

Though Tesla is still offering 0% financing on the Cybertruck for obvious reasons: it can’t sell them.

That said, it is still offering financing discounts for the Model 3 and Model Y, albeit at a lower rate than before the change.

18 months of free Supercharging on Model Y is also a significant discount, but that’s if you don’t take the financing deal.

It looks like Tesla is going all-out to try to secure as many buyers in Q3 as possible.

Volvo confirmed it will continue selling vehicles in the US, but its lineup will look a little different. With plans to cut several models, Volvo will offer only about half of the cars it currently sells globally.

Volvo adjusts US lineup, cutting several vehicles

Days after Volvo announced it would begin production of the XC60 in the US, its best-selling vehicle, we are learning the move is part of a major shakeup.

Volvo has already begun cutting sedans and station wagons from its US lineup. The Swedish luxury brand confirmed plans with Reuters on Thursday, citing slowing demand amid the Trump administration’s new auto tariffs.

Outside of the V60, Volvo will only offer SUVs in the US, or about half of the 13 vehicles in sells globally. Production of the S60 ended at its South Carolina facility last year.

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Volvo also told Reuters that the European-spec EX40 was also temporarily paused, but it would be available “shortly.” The company didn’t comment on why.

Meanwhile, its new electric vehicles, including the EX30 and three-row EX90, are failing to live up to the hype. Both were expected to see strong US demand, but Volvo is one of the most exposed to Trump’s tariffs.

Although the EX90 is built in South Carolina, many parts still come from Europe, which is now subject to a 25% tariff.

The EX30, which was expected to arrive at around $35,000, is only available in the dual-motor variant, priced from $46,195.

During an interview on CNBC’s Europe Early Edition, Volvo’s CEO Håkan Samuelsson said the company would “definitely not” leave the US market altogether.

“What we are doing is first of all, we want to fill our factory we have in South Carolina. It should be the strategic asset it was intended to be. So, we have to utilize it more,” Samuelsson explained.

By bringing XC60 production to the facility, Volvo said it would “soon now produce something for everyone in its US plant.”

The EX60 has been Volvo’s best-selling model globally for years and is the most popular in the US. So far this year, the XC60 accounts for over a third of Volvo’s total sales. It’s also the fourth-best-selling luxury plug-in hybrid in America.

Volvo is set to begin building XC60 models in South Carolina in late 2026. It will also continue building the EX90 “for customers who want more space or are looking to go fully electric.”