CHINA: EU Tariff Workaround, NEV Sales Surge Again and Semi-Solid State Batteries Enter Mass Production

Welcome back to EV News China. Coming up today, an EU tariff workaround,

NEV sales surge again, and semi-solid state batteries enter mass production, plus they tuned

because later in the show I'll tell you why Leap Motor is giving Stellantis another budget

buster for overseas buyers wanting a bargain bet. Welcome to EV News China, the podcast

dedicated to the world's largest EV market each day. I bring you the latest headlines,

insights and analysis from the heart of China's booming EV industry, and decode how fast

moving developments in the east are shaping the global EV landscape.

We'll start with this big news today. China and the European Union have agreed a price

undertaking scheme for Chinese battery electric vehicles shipped to Europe, opening a path to

ease the tariffs. Both sides will give broad guidance to exporters of passenger bevs on how

to structure these undertakings, which let firms address Brussels's subsidy concerns on a case

by case basis. China hailed the approach as more pragmatic, targeted and compliant with World Trade

Organization rules. The European Commission will publish a guidance document on submission of

price undertaking and assess each offer against the same legal criteria under a principle of

non-discrimination they say and in line with WTO rules. Beijing presents the move as proof

that China and the EU can settle trade disagreements when they talk through dialogue within frameworks

and says it will back the healthy development of a China-EU economic tie over EVs.

The deal caps a bruising couple of years or so in anti-subsidy probes. On October 4th,

2023, the Commission opened an investigation into imported bevs, arguing they benefited

from unfair subsidies that distorted the market. In October of 2025, it decided to impose additional

duties for five years on top of the existing 10% rate. The extra tariffs varied by maker. Tesla

faced 7.8%, NIO and X-Pung both faced 20.7%. While the China Chamber of Commerce in the European

Union hailed the new consensus as a soft landing in the disagreement that will boost market confidence,

it says the outcome will give Chinese EVs and supply chains more stable, predictable settings for

investing and operating in Europe and help deepen cooperation in things like market expansion and

innovation. The Chamber insists China's edge rests on technological progress and cost and

scale gains from fierce competition, not on subsidies even as Chinese makers now seek

tariff relief through price pledges or minimum pricing. We'll see how it all works out.

For now, China is on a rip in its sales numbers. China sold 12,809,000 EVs, that's new energy vehicles.

So cars with a plug socket on the side of them or hydrogen, they're really a footnote.

So that is 12.8 million EVs, things you can charge up with electricity. That's the total

2025 number. That is up 17.6% on a year earlier. In December, they were 60% of monthly sales.

Let that sink in. In December, 60% EV share in the world's biggest car market. The scale dwarfs

other regions. Data from China passenger car association show Neve sales in 2025, more than

2.5 times the combined annual volumes of the United States at 1.8 million units and Europe at 3.3

million. As America slows its shift to EV as it waters down pollution rules and emissions rules

and as Europe trims subsidies, China looks to pull ahead even further. The market kept growing even

as support faded. The government in China ended its purchase tax exemption for NEVs. Yet December

sales rose 2.6% year on year to 1.3 million. We'll get onto that in a moment. A rush to buy

before the cut-off obviously helped. People might have brought some sales, some purchases forward.

But by the end of the year, it was clear in China that demand was less about subsidy

and more about product. And everyone in the industry, in the indents of the industry heads

of companies are all saying this as well. You can't just make cheapest chips products

and hope that people will overlook any flaws. Now China has been through that phase

and has to deliver on very high quality products. And they know that. And I think they are.

Exports show the same pushes happening outward. Overseas shipments of China passenger cars climbed

19.7%, 20% last year, to 5.739 million EVs. Sorry, passenger cars, NEVs were 46.4

percent of the total. About half then of that 5.74 million wear EVs. Leaving China's shores,

China's EV industry has moved from catching up to setting the pace with weaker policy support in

the West and China sending out 2.7 million EVs every year and growing. The gap will widen.

Now what about that monthly data? That's 60%. Incredible, right? China's car buyers pushed

NEVs to a sales record of 1.337 million in December. Data from CPCA show retail NEV sales

again to the monthly high, edging past November's 1.321 million. But year on year growth slowed

slightly. The headline number also fell short of some of the market optimism. The estimate

puts December retail NEV sales at 1.337, like I say. But the estimate before the end of the year

was 1.387. So the final tally suggests that perhaps at the end of the month, obviously demand is off

the scale strong, but perhaps lagged internal hopes. Battery electric vehicles tell the same story.

Bev retail sales were 782,000 of the 1.3 million in December, up 2.5%. But again,

just down slightly on November, Bev sales made up 59% of total NEV sales. So the majority of

NEVs in China are pure Bevs. That points to faster relative growth, though, to plug-in hybrids

that are maturing and EREVs as well. Now, China's first factory for mass production of liquid

solid state batteries began operation and started at the end of last year. So this is really

interesting. Solid state batteries are under the microscope in China in terms of the definition

of them. And there's, I think, inclination to separate out what is a semi solid state battery

with some liquid electrolyte and a true full solid state. And to stop people using phrases,

muddying the water when they're not really meant to, and maybe even misleading people,

in Jiangxu, moving the country's solid state push into the mainstream. Now, the company is

HILIC, or HILIC, known domestically as Heiwan Lithium Innovation. Founded in 2023, it focuses on

R&D production and sales of solid state lithium ion batteries for energy storage, power applications,

and household appliances as well. The project carries a total investment of 5 million yuan,

that's 716 million US dollars. At the launch ceremony, HILIC unveiled a six in one battery,

which says it optimizes for energy density, safety, capacity, discharge rate, cycle life,

and cost across several uses. The intelligent lightweight power battery for scooters and bicycles,

with 1500 charge cycles, and surviving damage or nail penetration tests. Also,

a low altitude power batteries for EV tolls and similar aircraft as well, with a 15C discharge

rate. Wow. And also, an energy density of up to 360Wh per kilogram. Very interesting.

Now, BYD has filed for approval in China for heavily revised C-Lion 05 DMI plug-in hybrid.

I wonder if we'll see this vehicle overseas as well. It's a push to keep its compact SUV lineup

really sharp. The update aligns the hybrid styling with pure electric versions of the C-Lion 05,

adding a larger battery though. The C-Lion 05 EV was out last March in 2025, costing 16,000 US

dollars equivalent, 118,000 yuan. That is 520 kilometers on CLTC. BYD now wants the plug-in

hybrid, petrol assisted version, to look like part of the same family. The new hybrid has

the reworked front, with a full width LED light bar, reshaped bumper, now carries semi-hidden

door handles at the rear, new tail lights, new bumper trim, and a reprofiled roofline as well.

Under the skin, the powertrain stays put. The updated 05 DMI keeps the engine and electric motor.

The meaningful change comes in the battery, which is bigger, either a standard 18.3 kWh

or a 26.6 kWh pack, which a reminder, this car starts at 16,000 US dollars. It's a big battery

for a cheap small car. The pack now supports 155 kilometers of electric-only range, improving on

earlier C-Lion 05 plug-in hybrids, and edging it much closer to EV-like daily use, with never

having to put petrol in the thing. Alright, let's take a quick break on the podcast. We'll come

back to Denza and Cherry, and show me as well. Stick around, back in a mo.

Welcome back to the podcast. Now, BYD's premium Denza brand has edged its updated Z9 GT, closer to

showrooms with a revised lineup appearing in filings with the Ministry of Information and

Technology. The documents confirm powertrain tweaks for both pure electric and plug-in hybrids,

pointing to a refresh rather than a full model change. The body stays the same. The Z9 GT keeps

its current proportions and styling, including the distinctive rear design of the thing, which

is a very good thing indeed, a very good-looking car, and it moves its LiDAR sensor from the front

of the vehicle to the roof, no interior pictures that I can see anyway. The range under the skin

broadens. Denza adds a single motor, pure electric variant alongside the three-motor setup. The new

single-motor version delivers 370 kilowatts of power in both the Z9 and the Z9 GT, which like

I say, whether you call this a fastback or a wagon shape, different things. It's not a full-on

state car. It's definitely got more of a sloping roof line, but I think very aggressive looking

and sitting on really big alloys here, which the pictures are, even though it's got what some people

call the taxi hump in the middle of the roof, which can be a little bit love it or hate it.

It is otherwise a very sporty-looking vehicle. I think if most people saw this, they'd think,

is that a Porsche Taycan? Cross-Turismo? It's not a million miles away. The flagship version

is the three-motor pure electric, gains more power. Front motor, 230 kilowatts,

and each rear motor, 310 kilowatts. So it's about 1140 horsepower. I mean, should mere

mortals like us even have 1100 horsepower under our right foot? That's up from a thousand horsepower

in the current one. The plug-in hybrid version has a two-litre petrol engine, three electric motors,

and there is a 63 kilowatt-hour battery pack, which they say on WLTC would be pure electric

range of over 300 kilometers. Now, Cherries iCar or iCar V27, a five seats extended range

off-road SUV, has rolled off the production lines in China. Pre-orders have been open since December

2025 for this one. The brand's largest model will launch in the first quarter of this year,

rear-wheel drive and all-wheel drive. The car matters less for its square looks than what

it signals about China's plan to push range and performance in heavy, large SUVs. Or

some people would call this an off-roader. I mean, if you've seen a Land Rover Defender,

again, you could draw some lines between this and a big, modern Land Rover Defender. Again,

I think for a big, boxy off-roader, a very good-looking vehicle, but high drag, no doubt.

All-wheel drive, variant, pure electric range of 200 kilometers, combined range of 1200. The

V27 follows the classic off-road template. Boxy body, circular round headlights at the front,

very conventional door handles, you can grab them. Vertically stacked tail lights, a side

hinged tailgate. Probably your mind's eye is painting the picture right now. Power comes from

a range extender, so never driving the wheels. It's a 1.5 liter engine. Either one or two motors,

20.6 kilowatt-hour battery pack on this one. The all-wheel drive, 335 kilowatts of power,

still quick. It's like five and a half seconds to 60 miles an hour. And loads of drive resistance

as well. You can see the little LiDAR sensor at the top of the vehicle as well. Big 15.4-inch,

2.5K central control screen inside, too, and a very utilitarian look on the inside. Now,

Xiaomi is next in the news. Xiaomi EV delivered 50,000, 212 vehicles in December. It's best

ever month, according to the CPCA. The tally beat its previous record of 48,500 in October.

That's up almost 9% from November and up 94% in a year. The Xiaomi surge shows how quickly

the newcomer has pushed into the world's most competitive car market. The YU7 is the,

I hate saying it effectively, the Model Y. Obviously, that's how many people's

shorthand will put it, but I'll say that. The YU7 did most of the work, accounting for 40,000

of the units in December's 50,000 total. The rest, of course, are the original SU7,

which is ticking down, by the way. Annual numbers look brisk at Xiaomi. The SU7 to almost 260,000

of them. That's driving all the volume now, 150,000 for the SU7. Xiaomi is moving already to refresh

its lineup, taking pre-orders for the new facelifted SU7 earlier this week. Maybe last week they did

that. The December record, the YU7's rising share, and strong full year results show that they have

moved definitely from curiosity to main contender. And finally, LeapMotor has picked the Brussels

Motor Show this week to show the A10. The A10 is a compact electric SUV. I've told you about it

yesterday on the podcast. When it arrives overseas, though, it will wear the B03X badge.

The B03X is the firm's first global model on its A platform and follows a world's debut at the

Guangzhou show last November. The car matters less for its size than for its price and the names

behind it. In China, the top spec A10 comes in below $14,000 US dollars equivalent.

Delivery start in the first half of this year. 500km range small SUV shaped car is within the

budget of so many in China now. And when it comes to Europe, of course LeapMotor is backed by

Stellantis that don't quite have showrooms on every corner, but they have plenty of them.

And they look very western and trusted. And these LeapMotors show up right next to the famous

Stellantis brand in the same showroom. All of that rubbing off on them in terms of being the real

deal on the A platform. So it's a 4.2 meter long vehicle, 1.8 meters wide and 1.6 meters high,

little 2.6 meter wheelbase compact SUV. It's like the new Kia EV2 if you've seen all the fuss

around that. 500km of range. Inside LeapMotor leans on some quite high performance Qualcomm

chips as well so it should feel really snappy. That would be my prediction. At least the A10 or B03X

gives Stellantis a cut price Chinese EV that will sell abroad and offers LeapMotor a platform

for more global expansion on a sub 100,000 yuan vehicle. And that is your podcast for today.

Thank you for listening. I'll catch you on the next one.

CHINA: EU Tariff Workaround, NEV Sales Surge Again and Semi-Solid State Batteries Enter Mass Production

About this episode

NEV

BEV

plug-in hybrid

C-Lion 05 DMI

BYD

battery pack

electric-only range

Denza Z9 GT

powertrain

pure electric

LiDAR sensor

Porsche Taycan

kilowatt

horsepower

Chery iCar V27

all-wheel drive

Land Rover Defender

range extender

Xiaomi EV

Tesla Model Y

Leapmotor A10

500km range

Stellantis

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