DAILY: Canada Drops China EV Tariffs, Germany Bets €3bn On Buyers and Plug-In Sales Grow | 16 Jan 2026

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Welcome back to EV News Daily.

Today, Canada drops China EV tariffs.

Germany bets $3 billion on buyers and plug-in sales grow.

Plus, stay tuned.

Later in the show, I'll tell you what EV Ford is taking back to Pike's Peak this year.

On EV News China, today, our spinoff podcast, looking at what's happening in the east,

Ford is courting BYD for batteries, Xiaomi Founders Marketing Push, and China's Price

War.

And join me later for a bonus show looking in-depth at the lead item today, what Canadian

Tariff Cuts mean for EV buyers.

We'll look at reaction from the major players and ask what it could mean for the US as well.

It'll be live tonight for patrons and all Patreon exclusives go into the free feed after

seven days.

The topical shows don't do that.

The news always stays in the free feed as soon as it's ready.

But for the specials, I like giving our patron supporters because they're put in their

hand in their pocket and paying my way.

And so a little bit of exclusivity on the specials.

You can check out the Patreon page and support my work or get it for free just by waiting

a week. So yeah, it's going to be a 20 minute special on this item.

And that is Canada will slash tariffs on Chinese EVs from 100 percent.

When it followed the US's lead to 6.1 percent as its neighbour doubles down on keeping the

Chinese out.

Ottawa's new trade deal with Beijing sets an annual quota of 49,000 Chinese EVs.

That's less than 3 percent of Canada's new vehicle market, but enough to reshape price

brackets and supply chains.

That 49,000 figure was chosen because that was the 2023 level of EV imports before the

tariffs came in.

Canada will open its market to Chinese EV makers and in return, China cuts tariffs on

Canadian canola seed from 85 percent to 15 percent and lifts curbs on Canadian seafood.

Ottawa also expects lower barriers to draw Chinese joint venture investment into EVs

from cells and packs to upstream materials.

The policy targets affordability.

Over 50 percent of Chinese EVs entering under the new quota will have to sell below $35,000

within five years.

That undercuts many incumbent models and could reset what mainstream Canadians expect for

range equipment and software.

Firms such as BYD and CATL now have a direct incentive to build capacity in Canada, where

access to North American resources, clean power and a more open trade stance offers

a base distinct from the United States.

Yet the move breaks sharply with Washington's protectionism, which seeks to block the Chinese

from the North American car market.

The Canadian stance will test how far supply chain integration can go when the continent's

largest market pulls one way and a smaller, more open neighbor pulls in the opposite direction.

For Prime Minister Mark Carney, the wager is that cheaper EVs, wider choice and hopefully

some fresh capital, outweigh the diplomatic friction.

Some of the reaction that I'll go into later tonight includes Ontario's Premier Doug

Ford attacking the federal government and the slash on tariffs, warning that it puts

the province's car plants and their access to the American market at risk.

Ford argues that this move hands China a strong foothold in Canada's EV market at the expense

of local workers.

He says cheaper Chinese imports could undercut vehicles built in Ontario, which depends on

the United States as the main destination for its cars and trucks.

If Washington views Canada as a backdoor for the Chinese, Ford warns it may curb imports

of Canadian-built vehicles with the risk of job losses in Ontario's assembly plants.

Ford has urged Prime Minister Mark Carney to move fast and shore up the auto sector he

wants Ottawa to drop its EV sales mandate and to align regulations with those of key

trading partners above all, the United States.

He calls instead for policies that draw capital into domestic factories.

Rather than imports, the Premier ended with a plea for closer federal provincial cooperation

on industrial policy.

Without it, he suggests Canada may find that a tariff cut meant to open China's market

for canola ends up weakening its most important manufacturing industry.

Let's move to Europe and Germany and Berlin plans to spend 3 billion euros on electric

vehicle subsidies by 2029.

The scheme, agreed by the ruling coalition last October, aims to back about 800,000 vehicles

over the next three to four years.

The government will offer between 1,500 euros and 6,000 euros per vehicle, with low and

middle income families able to claim the maximum 6,000.

Base support for battery electric and fuel cell vehicles will stand at three grand, while

plug-in hybrids that meet set emissions and range thresholds receive 1,500.

Buyers must register a new EV from January 1 this year to qualify.

Berlin has delayed the formal announcement of exact amounts until Monday 19 January,

but the outline already shapes expectations.

Tax breaks add to the push.

An existing auto tax exemption for EVs now runs until December 31, 2035,

at a budget cost of around 600 million euros in foregone revenue.

The incentives land in a market that shows momentum and strain at the same time.

Over 2025 as a whole, BEVs were 19.1% of the new car market, which was 3 million vehicles,

registered up 43% year on year, returning from their low after the previous subsidies

vanished overnight.

Brand performance has flipped.

BYD led EV growth in Germany last year, with over 1,000% sales growth, while Tesla's volumes

fell almost 50%.

In BEVs, Volkswagen stayed on top, with 102,339 full EVs ahead of BMW and Skoda.

The package shows that Germany, even under its fiscal pressures,

still treats direct buyer support and tax relief as part of its core EV strategy.

Yet the mix of stronger local incumbents, aggressive Chinese entrants, and a cooling

for some of the global pioneers that Berlin has to pay for demand and shore up demand,

means it won't be able to predict the winners.

Now, let's talk about plug-in sales worldwide.

Global plug-in vehicles.

So if it has a plug on the side, it's kind of okay by me.

I know many listeners don't ever want me to talk about eREVs or plug-in hybrids,

anything that can burn stuff, and I really appreciate that viewpoint.

I'm not quite there yet.

I do think the audience wants to hear about forms of electrification with things with

a plug socket on the side.

So it's kind of where this podcast sits.

I'm sure I could be all BEV if I needed to.

There's enough news.

There's interest in these plug-in hybrids and eREVs.

They won't be around forever, so I know I won't be talking about them forever.

But as long as it has a plug socket on the side, if I can add clean green,

cheap electricity and drive on those miles,

it's kind of where I am.

Global plug-in vehicle sales therefore reached 20.7 million units last year,

and that was a 20% improvement on the previous year.

Yet growth is uneven and rests heavily on policy.

North America shows the risk.

Overall plug-in sales there fell 4% in 2025 after the federal tax credit was pulled,

even though battery electric vehicle sales actually inched up 1%.

In the United States, 4th quarter plug-in sales dropped 49% from Q3,

a sharp sign of the reliance on purchase incentives and how much

demand was brought forward into Q3.

Projections point to a 29% decline in American plug-in sales this year,

as support dwindles and pressure from the regulators rises.

Mexico moved the other way, with plug-in sales up 29% last year,

helped by some Chinese imports and rising consumer interest.

Canada was a 41% slump.

Once federal rebate funding ran out, as we've been talking about today,

I think the Chinese cars will make a big difference.

Elsewhere, momentum built.

Emerging markets in South America, Southeast Asia,

log date, almost 50% rise to 1.7 million units.

Europe posted a 33% increase to 4.3 million plugins,

driven by emissions rules and a broad lineup that we have.

And Chinese makers supplied 19% of Europe's plug-in sales, led by BYD.

The European Union may cut tariffs on Chinese EVs under a new deal,

which would further ease their entry.

China stayed, of course, the core of the market, with plug-in sales up 17%

to 12.9 million units out of the total 20.7 million.

Though growth there now is starting to slow.

In Asia's other hubs, the picture is split.

Japan's plug-in market is not much to talk about,

while South Korea's was up 50% backed by strong incentives

and more models from the local Korean firms.

Okay, let's move on.

Volkswagen commercial vehicles did well last year, had a brisk 2025,

it delivered around 401,000 vehicles worldwide.

Any guesses what was driving the growth there?

Oh, you've beaten me to it again.

Electric models drove the growth.

The all-electric ID buzz, more than doubled deliveries,

up 102% year on year, to almost 61,000 buzzes sold worldwide.

In Europe, the buzz now leads its segment,

with cargo versions making up around 46% of ID buzz sales.

Volkswagen commercial vehicles plans the long wheelbase ID buzz cargo this year,

a clear sign that it sees more room to grow in electric vans.

I noticed that the AutoTrader app in the you might like feed,

which it sometimes inserts.

If I'm just searching for a model, it'll just put things in as an advert.

You might like this car.

Keeps suggesting all wheel drive ID buzz GTXs in long wheelbase trim.

I agree, AutoTrader algorithm.

I would like, I can't afford one, but your algorithm's good.

I would like one of those.

Very impressive vehicle.

Conventional models pull their weight as well.

There's the plug-in hybrid multi-van,

which I keep looking at, but again, can't afford,

because it would suit our family so well,

in terms of just having a family van.

Also, I can't really bring myself to buy a plug-in hybrid,

but the multi-van's spectacular, and that was up 31% last year.

The Caddy was over 100,000, and there's a new plug-in hybrid variant I see of that.

The Crafter, their biggest commercial vehicle,

were 73,000 units.

There's a next generation eCraft coming as well.

Let's take a break.

And when we come back, we'll talk Hyundai and Iona in Illinois.

Stick around back in a mo.

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All right, welcome back to the podcast.

Now, Euro NCAP tested over 100 new vehicles in 2025.

And guess what?

Electric vehicles now sit at the top of every major safety category.

Safety scores do more than simply sell a car.

They shape fleet choices.

They shape insurance costs and, in time, regulations.

The latest results show that the push to electrify

is moving in step with the push to protect

those of us inside and outside vehicles.

The Mercedes-Benz CLA EV led the field last year

as the safest new car of 2025,

with 94% for adult occupant protection

and 93% for vulnerable road users.

Tesla's refreshed Model 3 took the safest large family car slot.

The Tesla Model Y ranked as the best small SUV,

with 91% for adult and 93% for child protection.

At the smaller end of the market,

the Mini Cooperie became the safest city car.

It beats its petrol equivalent with 89% for adult protection,

87% for children.

In the large SUV class, the smart hashtag 5.

The electric crossover posted 88 for adults and 93 for children.

Further up the premium ladder,

the Polestar 3 is named the safest executive car.

Across city cars, family saloons, SUVs and executive models,

EVs are no longer just matching their combustion equivalent,

but actually surpassing them in every class

where Euro NCAP named a best performer.

It was the electric car that took top spot.

And if you're wondering then,

what's the safest car to buy right now?

Well, then that's that new world, sorry,

European car of the year winner, the Mercedes-Benz CLA.

Well, of course, this year we'll have new things

like the Volvo EX60 coming on.

It was on January 21st and when that gets its testing,

I'm sure Volvo will want to be a very safe car.

There'll be some more battles there for the safest car to drive.

Hyundai will show off an electric camper van

based on the all-new electric Staria at the CMT trade fair in Stuttgart.

A trial for a battery-only recreational vehicle aimed at Europeans.

The concept sits as a possible spin-off from the Staria electric,

first shown in Brussels at the Motor Show last week.

If it does reach showrooms,

the camper van would otherwise use the same platform,

the same vehicle, EGMP, 84 kilowatt-hour pack, 160 kilowatt motor.

With launch, his plan for the sometime in the first half of this year.

Hyundai targets a range of 400 kilometers under WLTP.

In Stuttgart, Hyundai will be asking the visitors to the show

to gauge demand before it commits to production.

The one off on the stand will itself unlikely to be the all-electric version.

The camper's kit would be a little more upmarket as well.

An electrically operated pop-up roof and integrated solar panels,

they say would add 2.6 kilowatt-hours of lekkie per day on a sunny day,

rather than having to find a hookup.

Inside, a 36-litre refrigerator, front seats that will rotate 180 degrees

and rear seats that fold flat to form a bed area for two.

So a two-birth van, that's fine for many weekend campers,

and also small families as well.

I mean, put the kids in a tent outside, that's fine.

Would turn the Starria into a compact little getaway vehicle.

There'd be a small sink, an outdoor shower,

and an awning to complete the package.

You know, one thing that I would love to think about,

well, firstly, cooking.

Gas would be completely out of question, right?

So this would have to be an induction hob.

I see so many cool EV conversions.

There's like ID buzzes.

I saw a company over the weekend last week talking about the new Kia PV5.

That's the van, right?

Which is cheap.

It starts at 32 grand.

It's ridiculously cheap.

They're going to start to convert those.

So they'll build each one as a custom then.

And they were saying, well, we'll put in a 200 amp hour

leisure, battery, off grid, plug-in.

You can get to a campsite and recharge.

Look, hang on, you're building it on an EV.

Now, I appreciate if you're a motor home conversion company

and you haven't necessarily got the engineering

to start pulling off those orange high voltage leads.

Probably wouldn't do that.

But look, the Kia PV5 does have vehicle to load.

In fact, it has a vehicle to X, vehicle to everything, capabilities.

So maybe it does come down to the manufacturers to do,

like Volkswagen do and others, the factory conversion.

But if Hyundai do it, I would absolutely love to see deep,

deep integration into the traction battery.

And then maybe a way to turn up to a campsite

and use the electrical hookup, which is going to be at 230 volts.

But you wouldn't be able to draw much from it,

depending on most campsites.

However, you probably wouldn't want to then start

recharging your EV's battery.

So there should be some sort of switch over.

I'm sure you could, but I think a lot of campsites

wouldn't like it.

A lot of campsites don't allow it.

You need to go find an EV charger, not use the tent hookup.

So there's got to be a way around it.

I'd love to see them think about that.

Look forward to that.

Illinois now has five new electric vehicle charging hubs.

The rechargeries from IANA.

IANA is rolling out so quickly.

And the sites add 38 fast charging bays,

two hubs with 10 bays each in Pontiac and Gilman,

with and three with six bays each in McHenry,

Vernon Hills and Hanover Park.

Comet powers all but the Gilman one.

And the buildout matters because Illinois

has turned itself into one of America's more bullish EV states.

Battery electric vehicles reached 162,000 in 2025.

And the growth has gone hand in hand with infrastructure.

Last year, Illinois added 411 new public charging locations.

Less than half of them were leaning on the federal

or state grants.

Public money did play a part, of course.

After lobbying for the continued federal support,

Illinois secured its $148 million from the

National Electric Vehicle Infrastructure, NEVY program.

The Illinois Department of Transportation

has already earmarked another $43.8 million

for 62 projects to deliver 349 new charging points.

IANA wants its rechargery network to stand out

for a user experience.

The hubs offer not only excellent hardware

and high-speed DC fast charging with both CCS and NACS,

plus a menu of other driver comforts.

Sites range from basic installations to the elaborate ones

with lovely lounges and food options.

In November last year, the firm said it would invest

$250 million over three years to expand the rechargery network.

VMAX is a Swiss scooter maker, formed in 2015,

recently opening in the US as well.

They used CES last week to take the fight

to the big e-scooter brands.

VMAX rolled out three new models in Las Vegas,

each aimed a different slice at the market.

VMAX wants to sit between high-performance toys

and more sober commuter scooters.

If it can do that, it will hand the established

makers a fresh rival.

At the top end is the VX6.

This is what they call a super scooter.

I think only for those with, let's say, big kahooners.

With dual 60-volt motors, so that's 6,000 watts of power,

VMAX claims a top speed of, just double-checking my notes here,

50 miles an hour.

That's 80 kilometers an hour on a scooter.

Not a motorbike, because some of my UK listeners might think,

you know, when you say scooter,

you sometimes think of a small moped or a small motorbike.

No, I'm talking about e-mobility scooters.

The kind that my kids have.

Okay, this is slightly better than that.

It has almost a two kilowatt hour battery,

dual hydraulic disc brakes, adjustable suspension,

and 11-inch self-sealing tubeless tires.

In case one of them goes pop at 80 kilometers an hour.

Pricing not yet set, but it'll be premium.

It comes this year.

The VX8 targets weight rather than speed.

It's built from carbon fiber.

It weighs just 34 pounds or around 15 kilograms.

And it'll carry a 1,400-watt gear drive motor

that'll tackle almost 40% inclines.

Top speed is 19 miles an hour, or a more leisurely 30 kph.

A color TFT display, integrated turn signals,

an IPX6 water resistance pushes it a little more upmarket.

And the VX2 Lite is the broad appeal one.

It adds real suspension and targets a price under $1,000,

with a claimed top speed of 25 miles an hour and 40 kph.

And up to 56 miles, or 90 kilometers, of range in eco mode.

Again, 10-inch tubeless tires, a regen braking setup,

and turn signals are meant to prevent any mishaps.

Right, finally, Ford will send its super-mustang Mac E,

Backup Pikes Peak this year,

chasing the wind that the bad weather denied it last year.

The car maker calls the return unfinished business.

The all-electric racer, a low-slung sports car,

despite its SUV-inspired name,

that has very little to do with the Mustang Mac E

that you and I could go and buy, apart from the name.

Won its class and finished second overall,

but the result fell short of the goal outright victory.

The mountain favors batteries over pistons.

The course climbs to 14,110 feet,

where the rather thin air saps power.

One of the inherent weaknesses of combusting things,

from petrol engines.

Man, they just can't compete.

I mean, on so many ways,

but they can't compete with electrical power.

EVs, of course, suffered no such loss,

which is why we see things like Formula E, the racing series,

when they go somewhere with a high altitude.

You see them racing in Mexico.

Yeah, the racing isn't affected.

The all-time record belongs at Pikes Peak to the Volkswagen IDR.

Last year, though, the weather dulled the advantages.

Conditions forced the organizers to shorten the race

to the lower portions of the mountain,

which meant that there wasn't such an offset for EV power.

Ford's Super Mustang Mac E still topped the class,

but Roman Dumas, the driver,

later said he thought he could have won over the full course.

Ford hasn't disclosed technical details of this year's car,

but they said it's a lot better.

And if the weather plays ball,

Ford could well regain contend for the overall win at 14,000 feet.

And that's your podcast for today.

Thanks for listening, and thanks to our premium partners,

National Car Charging on the US mainland,

and the Low Heart Charging in Hawaii,

and Test EV, Avalos' trusted partner

for independent EV battery testing in Australia and New Zealand.

Have a good one.

See you tomorrow.

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DAILY: Canada Drops China EV Tariffs, Germany Bets €3bn On Buyers and Plug-In Sales Grow | 16 Jan 2026

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