EV News China: Changan In Europe, Corruption Crackdown and Small Car Battles | 12 Sep 2025

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Chang'an Automobile is accelerating its international expansion, showcasing the NEV brand, D-PAL,

at the IAA Mobility Show in Munich, debuting the SO5.

The company delivered its first SO5 to a European customer this week, marking its official entry

into the region, while simultaneously holding a global launch event in Chongqing.

Chang'an-based Avatar also revealed its Expectra concept in Munich, and confirmed plans for

five global models within two years.

The company is moving quickly to establish a strong Euro presence, its signed dealership

agreements in ten markets, set up a European headquarters, and created an R&D centre in

six countries.

There's a 24,000 member technical team.

Import subsidiaries are already operating in Germany and the UK, with spare parts hubs

and service facilities being established this year in the Netherlands and the UK.

Chang'an's overseas strategy isn't just about Europe though, in fact they're building

their first NEV plant in Thailand, pursuing knockdown kits, assembly projects in Egypt,

Algeria, and Kazakhstan, and exploring production in Mexico and Brazil, with nine of a planned

twenty overseas plants now already online.

The company expects to supply 500,000 vehicles annually to overseas markets.

Chang'an also revealed the DPAL-06, that is a LiDAR-equipped vehicle standard across

all versions, EREV and EV powertrains, highlighting the cockpit's chip, calling it the first three

nanometre automotive grade chip.

That's the same process as Apple's latest technology, as we've been following the news

this week, Apple released a new iPhone talking about three nanometre technology.

This is also showing up, not just in your latest smartphone, but the cars we drive as

well.

The design of the DPAL-06 follows the recent design language, headlights inspired by what

they say cold, orchid and ice crystal motifs in a blooming petal style.

Side mirrors on the doors, the car is 4.8 metres long, 1.9 metres wide, 1.48 metres high,

wheelbase quite big, actually 2.9 metres long.

The rear features a duck tail spoiler, diffuser and full width tail light with integrated

logo.

Inside there's a T-shaped dashboard, a large central control screen and a 50-inch AR head-up

display.

For powertrains, the EV version is pretty well equipped, it comes with a 200 kilowatts

motor.

But what about the EREV, because that's becoming more popular in some sections as well.

That's a 1.5-litre engine and 175 kilowatt-hour, sorry, so 175 kilowatt motor with a 29 kilowatt-hour

battery.

Some of these EREVs have really big batteries, that's not one of the biggest by the way,

although it seems big to me.

That's about 180 kilometres of electric range, the Pure EV version by the way, choice of

either 56 or 69 kilowatt-hour batteries.

This looks like a really nice saloon sedan, it's hatchback technically, isn't it?

But interesting LiDAR standard on all models.

Inside very crisp, very sharp by the look of it, mainly dominated by a big landscape

touchscreen and a three-spoke steering wheel, all pretty conventional-looking, but this

D-PAL L06, if you're looking for a direct competitor, something like, well, a Tesla

Model 3, I would say.

But, I mean, design language as well, looking very sharp, a few sharp creases in the bodywork

as well.

Looking a bit Cupra in places, that's a reference that you get, really nice looking car.

Now, China regulators have launched a three-month crackdown targeting illegal advertising by

automakers and media firms.

They say it's fueling an online chaos.

The campaign revealed yesterday in a document from six major agencies singles out car makers

for exaggerating specs and quality, plus media outlets accused of using reviews to pressure

manufacturers for more coverage.

The move comes as Chinese government tries to rein in unhealthy competition in the EV

and solar worlds, where price wars and overcapacity are cutting profits and forcing smaller auto

companies out of business, raising fears that vehicle quality and safety are being undermined.

Penalties have not been detailed in the document, though.

However, the China Advertising Association said that serious fraudulent promotions could

mean up to two years' detention or prison, as well as fines, and that the industry must

not be unscrupulous in its car promotion.

There's certainly some recent coverage, I won't go into specifics, but there's been

some recent coverage about car makers making aerodynamic claims about their vehicles, certainly

some very impressive numbers being given for some vehicles that don't look particularly

aero, and then even in one case, people were buying a vehicle or renting one, taking it

to an aerodynamic testing facility, a wind tunnel, and finding different results from

what the automakers have said.

That's just one area.

Things like efficiency of batteries and motors could be another area that they are exaggerating,

and so I'm not aware of, if it happens, I'm not sure it does, some of the more independent

Chinese media, in the way that some of the Western media do things like range tests and

are more critical of manufacturers, but being held to account is something that the Chinese

EV makers perhaps will have to get used to.

Europe may soon have a new vehicle category around small cars.

This is not particularly the Japanese K-car definition, but think of the parallels.

After European Commission President Ursula von der Leyen endorsed the idea yesterday in

the State of the Union Address, she announced an affordable small cars initiative, and this

is because the Europeans want low-cost cars made in Europe, she says, to fight the Chinese

incoming small cars.

Every reason why, with great quality cars at good prices, the Chinese OEMs can dominate

the small car market.

The cheapest cars on sale right now in Europe are mostly small Chinese cars, the Dacia Spring,

perhaps being obviously part of Renault, one of the exceptions.

The proposal will be discussed later on today, the 12th of September, alongside talks on

emissions rules, competitiveness.

Von der Leyen described how a new class of clean, efficient, lightweight vehicles

would be created, didn't say if it also applied to combustion vehicles as well.

Proponents point to the international models like Japan's K-car and Brazil's tax incentives

for the carropopular vehicles, which make small cars more accessible.

The Renault CEO Luca D'Ameo, and head of the Europe's Automaker Lobby,

has been highlighting, in his old role of course, that regulatory costs are reducing

the profits on small cars, but that is not his concern anymore.

But certainly an area that the Chinese EV makers could have had a bit more of an open

goal to aim at if this were not to be done.

Let's talk about X-Pang or Xiaopang, the CEO Hu Xiaopang says the brand will

relaunch its current electric models with a new one-car-two-functions approach.

That's really interesting, isn't it?

So what does he mean by one-car-two-functions?

These cars will get a smaller battery pack and a combustion engine that doesn't drive

the wheels but acts as a generator.

This type of setup, typically called E-rev or range extended EV,

is different to hybrids because in those cases on a plug-in hybrid the motor

drives the wheels, the petrol engine can drive the wheels, in E-revs typically.

Although there's no hard and fast definition, but I think we're settling on E-rev meaning

that the engine charges the battery like a BMW i3 did all those years ago.

The architecture behind this is X-Pang's SEPA3 platform, also called Kung-Peng AI,

which makes it easy to add the generator hardware to EV models.

The first to use this is going to be an X-Pang X9 MPV.

Regulatory filings show the X9 E-rev will have a 63.3 kWh battery.

That's enormous, that's as big as a battery in some EVs.

Pure electric rating, 450km CLTC.

Combined range, which many of the Chinese manufacturers are now very keen on doing,

often with a big headline range of 1600km.

Not that you can drive for 1600km without stopping for a comfort break,

nor should you for concentration reasons.

But this is an E-rev, so plug socket on the side so you can charge the battery

obviously with cheap electricity.

800V system, 5C charging and discharging speeds.

The E-rev version is longer than the BEV version.

Same wheelbase, power comes from a 1.5-litre engine, really typical setup.

Lithium-ion phosphate, official pricing for the E-rev isn't out.

The all-electric X9 from X-Pang starts at about $360,000, about $40,000 US equivalent.

The range-extended version should cost a bit less when sales begin later this year.

X-Pang also opened it opening in Munich, an R&D centre.

X-Pang's opened its first European R&D centre.

It's 9th worldwide, strengthening the strategy of in-Europe with Europe.

Some of the car makers have a version of it as well,

but X-Pang's version is in-Europe with Europe.

The hub will focus on tailoring vehicles to European preferences

and work with teams in Silicon Valley, San Diego and four Chinese cities.

At the IAA mobility show, X-Pang highlighted both its current lineup and future technology.

On display was the updated P7 and the upcoming G6 and G9,

they're both SUVs plus the MPV, I mentioned the X9 and a new P7 Plus.

Beyond vehicles, they're talking humanoid robots, flying cars and land aircraft carrier concepts.

Their modular platform also getting some attention too.

Also talking level 4 autonomy for sometime next year,

Robotaxi pilots in China and AI systems too, a lot on their plate.

X-Pang began their European expansion in Norway back in 2021 and has grown to 46 markets.

Deliveries in August were 37,700 units, that's a big year on year increase.

From January to August to the end of August, the company delivered 271,600 vehicles,

up 250% compared to last year.

So since founding, X-Pang has delivered 862,000 vehicles heading towards that million mark.

And then finally, they confirm they're bringing their Mona series to Europe next year.

That's their budget brand, their cheaper brand,

offering several Mona products in China and internationally.

The Mona line comes from X-Pang's 2023 purchase of DD Global's EV business.

And first of all, it was independent but now it sits under X-Pang's main brand.

These cars are priced well below the main brand

and the more expensive models like the P7 and the G6.

The first Mona is the M03. It's going to be an electric sedan.

It was launched in China, it was over a year ago, wasn't it?

It was sometime in August 2024 that we first saw that vehicle launched.

The Mona M03 is a competitor to the Tesla Model 3.

Some say that the name is a direct reference to remind you which car it is up against.

It starts at though, and this is wild, it does start at 120,000 RMB.

Wow, that's like 17,000 US equivalent.

Half the price, in other words, of a Tesla Model 3.

Earlier this year in May, they announced the M03 Max,

which starts at a little bit more, 130,000 RMB with some drive resistance features,

which X-Pang say is equivalent to full self-driving,

and that's included in the base price.

Last month in August, they delivered 15,500 units of the M03,

staying above 10,000 units a month for the 12th straight month.

That is now 40% of their monthly deliveries.

A crazy good bit of value on that vehicle.

You know what? It actually looks kind of nice, the M03.

It is very much a Tesla competitor, not too much to it.

Quite soft lines on this, quite conventional lines, nothing wild and crazy.

Headlights sort of similar in a way to Polestar and Volvo's Thor's Hammer headlights,

in a sort of kind of way, but loads of autonomy,

loads of value for not a huge amount of money with that.

So we're going to take a quick break on the podcast.

When we come back, lots to discuss.

Tesla in China on the radar today, and Neo, seeking a new share sale.

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All right, welcome back to EV News China.

Thanks for checking out our brand new podcast,

dedicated to the world's largest EV market.

We trialled it earlier in the summer, went down really well.

People said that they loved hearing someone from outside of China

decoding the market for Western audiences.

Obviously, this will always be an English language podcast as well.

And running through what the stories are coming out of China

and what it means as well.

More importantly, letting people know, actually, what does this news mean?

How does it impact me or the EV industry?

And obviously, Tesla's August results in China were very closely watched,

split between sales domestically and exports.

Model Y retail sales were a smidge under 40,000 units in August,

down 13% year on year, but up from the previous month in July.

Year to date, well, January to August totals, 241,600 units of the Model Y,

which is even 16% lower than back in 2023 for the same period.

So you'd expect big growth, but retail sales are really struggling in China.

It's been a common problem that we've talked about all year for Tesla,

about the different headwinds they're facing around the world.

Exports, however, were a bright spot.

Model Y exports surging to 19,500 units in August.

That is up on the year and lifting the eighth month tally to 77,000 vehicles,

up 18% on the first eight months of last year.

Strong demand for the new six-seat Model Y L.

Some reports say it had 120,000 orders in under three weeks.

I can't recall whether that was an official Tesla waybrow post

or not, careful with some of these people that post online and say they have a,

you know, confirmation of how many pre-sales were done.

Model 3 selling less, you won't be surprised here, significantly less,

17,700 units locally in August.

Despite four months of annual declines,

the year-to-date sales were actually up domestically.

However, it's exports weakening for the Model 3,

falling 46% in August month-to-month and down 42% year-to-date.

Well, Shanghai production continues to support both domestic and the global market,

but some good news, bad news there out of China for Tesla.

NIO is said to raise up to a billion dollars by issuing 181 million new shares in Hong Kong.

Proceeds will fund new vehicle platforms, expand its battery-swapping facilities,

and charging network. Founded in 2014, NIO has yet to post a profit and continues to face pressure

from China's brutal price wars and oversupply. Its battery-swap system offers drivers rapid

exchanges but requires big investment in infrastructure. To move towards break-even,

NIO plans to cut R&D spending by 25%. It's the second equity raise this year,

after securing money in March. News of the sale pushed US-listed shares lower.

More news later in the week or early next week with the outcome of that share sale.

Also, talking NIO, the upcoming ES9 SUV has been spotted in camouflage testing,

hinting at the brand's largest model yet. Internally, it's called the Draco. It builds

on NIO's design language, but it's a very large vehicle, and it stretches beyond the already

sizable ES8. This is parked in some of these pictures next to other vehicles, which I don't

think I can fully identify in some of these pictures, but large SUVs are parked next to,

and it's even bigger. This thing looks like a proper unit, the ES9. The ES8, for instance,

I think this might be an ES8, this is parked next to, is 5.28 meters long, over 2 meters wide,

3.25 meter wheelbase, really big vehicle, and the ES9 is even larger, so it's going to be longer

than 5.2, 5.3 meters. This will make it one of the biggest SUVs you'll see on Chinese roads.

Technology will align, we would think, with the ET9, that's the sedan, Skyride Intelligent chassis,

NT3 platform, no definite specifications on this coming into the podcast headquarters

at the moment. Meanwhile, NIO's Envo sub-brand is making some changes to their rollout schedule.

They're delaying the L80 due to L90 production demands. Together, these steps do signal NIO's

dual focus on expanding their flagship range, but also their affordable segments are important as

Let's talk about a five-seat hybrid SUV by Fang Cheng Bao, which has launched the Ti 7,

and they're pricing this at $180,000 RMB, well below other vehicles which are significantly

more, $50,000, $60,000, $70,000 RMB more, like GWM's Tank 300, Li Auto's Li L6. The top trim

of the Ti 7 is only 220,000 RMB, so the entire range is really affordable. It's their first

unibody hybrid SUV. It's five meters long with a three-meter wheelbase. Power comes from what

with this being a hybrid. Again, that 1.5-litre turbo engine, really popular format to do with

hybrid single or dual electric motors. The front-wheel drive versions, 200 kilowatts

all-wheel drive, is the dual motor, 4.5 seconds, 0-60. This reminding me very, very much of a

Land Rover Defender, so a completely vertical rear end and a very sit-up where you call it an SUV.

I guess some markets will call it a 4x4 typical kind of Range Rover Land Rover, really not Range

Rover, but very much a Land Rover styling on this. Hey, it looks really good to me at least.

A couple of options on the battery, 26.6 or 35.6 kilowatt hour battery. Again, big fuel tank on

this big vehicle as well, so massive range. Top trims have BYD's, God's Eye B, drive resistance.

That's the LiDAR as well. Connected cabin, tablets inside. I can see on the pictures here that both

of the rear seats have some big tablets to look at as well, mounted on the back of the front

seats too. So very big family vehicle here. Fang Cheng Bao, launched by BYD two years ago,

delivered 16,000 vehicles last month. So that's a growing lineup. The TIE7 will be joining the TIE3,

Bao 5 and Bao 8. And finally, BYD has launched a lawsuit against the CEO of the tank brand,

Great Wall Motors tank brand over an alleged online infringement. This is a curious case.

The Beijing Internet Court turned to public announcement after being unable to reach the CEO

of Great Wall Motors tank brand, Chang Yao, for months. His social media accounts have been

completely frozen since June. Legally, Chang will be considered served after 30 days.

Then it gets a further 15 days for defense submissions. The remote court hearing

is now set for the end of September, three days after the defense period ends pending holidays.

Chang's disappearance comes at a time of ongoing anti-corruption activity inside

Great Wall Motor. And it raises questions about, is he still with the company? What's his current

status? Is he the CEO of Great Wall Motors tank brand or not? Attempts to reach automotive

senior figures have had no response. Chang is a University of York graduate,

rose quickly within Great Wall Motors. He became CEO of the tank brand in May of this year.

Tank was launched as a sub-brand focused on off-road SUVs. They launched that in about

2021 as a spin-off brand. I think it's been pretty well received so far. Offers models

like the 300, 400, 500 and 700. Despite the profile of the brand, sales slipped recently,

143, 144,000 sales in the first eight months of this year. Not yet clear if the company is

addressing the vacuum in the company or even who the head of the tank brand is at the moment.

Really interesting vehicles for them that, again, looking very much like a four by four,

depending on what country you're listening to this in, would be what your references are,

whether I say Jeep or Land Rover or something like that. All of them look

Mitsubishi Outlander or something like that. So very much oil drive, rugged, roof racks,

very much that traditional shape of a four by four on that. So maybe he'll come back.

We'll wait and see. What a curious story to end the podcast with today.

Thank you so much for listening to EV News China. Let me know your feedback on this,

whether it's going to be useful to you, whether you're dipping into it, whether you think you'll

listen every day or not on the kind of stories that you'd like covered. I'd love to hear your

feedback. Thanks for listening and I'll see you on the next one.

EV News China: Changan In Europe, Corruption Crackdown and Small Car Battles | 12 Sep 2025

Tesla Model 3

Dacia Spring

BMW i3

XPeng P7 Plus

Tesla Model

Nio ES8

Ti7 Fang Cheng Bao

Land Rover Defender

Land Rover Range Rover

Mitsubishi Outlander

About this episode

Original notes