AD #4177 – There’s Too Much EV Battery Capacity; Ram Delays New Mid-Size Pickup; EREV Sales Tanking in China

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

GLOBAL EV BATTERY GLUT
The entire auto industry has too much EV battery capacity. That’s according to a new study from AlixPartners, which is one of our sponsors. In North America, capacity is nearly twice as high as demand, in Europe it’s more than two-times higher and in China, EV battery capacity is 5.6-times higher than demand. China’s overcapacity is especially high because tariffs have restricted EVs and components from being exported. And in North America, the capacity-to-demand ratio is expected to grow to 2.4 by 2028 and remain there through 2030. That’s because consumers aren’t currently buying EVs at the rate that automakers and regulators expected them to. And AlixPartners says the main reason car buyers aren’t choosing EVs is the higher prices.

 

EREV SALES TANKING IN CHINA
Extended Range EVs, or EREVs, were the fastest growing segment in the Chinese market. Not anymore. Sales have dropped for three consecutive months, and they’re dropping by double digits. The beauty of EREVs is that they drive like an EV, so you get things like great low-end torque and one-pedal driving. Yet, they have an on-board gasoline engine to provide long driving distances. But sales are dropping in China because most EVs now deliver 500 to 600 kilometers of range, or roughly 310 to 370 miles. And fast charging stations are becoming quite common. EREVs were developed to address range and charging time anxiety. But as EVs improve, those anxieties are fading away.

  

RAM MID-SIZE PICKUP INTEL
We’ve got some product intel on that Ram mid-size pickup. Autoforecast Solutions reports that production was pushed back three months to February of 2028 at the Toledo Supplier Park. The truck will be built on the Stella Large platform, under the code name R7P/NN. As we’ve reported before that truck will walk into a bee’s nest of competition, including the Toyota Tacoma, Chevy Colorado, Ford Ranger, Nissan Frontier, Honda Ridgeline, GMC Canyon and soon, a new entry from Hyundai.

VW & AUDI CLAW THEIR WAY BACK IN CHINA
VW and Audi have been clobbered in the Chinese market, losing sales and bleeding market share. But they haven’t given up and are starting to turn things around. Part of that includes PR efforts, like the Audi E5 Sportback setting the fastest time for cars under $69,000 at China’s race track called Asia’s Ridge Circuit. It also includes adding new models with more in-car intelligence and Level 2+ driver assist technology. That’s part of the reason Audi’s sales shot up more than 19% last month. Surprisingly, VW has actually grown market share with some of its gasoline models. But it’s also adding new EVs to its lineup like the ID. UNYX 08, which is introducing a whole new form language to VW’s styling. It’s a crossover with 700 kilometers of CLTC range, or about 434 miles. At a time when some are saying that foreign automakers ought to abandon the Chinese market, VW and Audi are showing the value of not giving up and fighting to get back in the game.

DONGFENG DEVELOPING HUB-MOTOR SEDAN
We’ve seen several attempts to introduce in-wheel hub motors, the most recent being Lordstown, but so far those attempts have failed. However, another car maker is going to give them a shot, Chinese automaker Dongfeng. It filed documents with the Ministry of Industry and Information Technology, one of China’s top regulators, for a version of its eπ 007 sedan with 4 individual in-wheel motors. Each unit produces 100 kW, so combined output comes to 536 horsepower. While many Chinese automakers make some of their parts in-house, these motors will be sourced from the Shanghai Automobile Electric Drive company. No word on when the model might hit the market or what pricing will be. Although, current versions of the sedan range in price from about $16,000 to $21,000.

KIA RE-STYLES TELLLURIDE
Kia is going to reveal the next-gen Telluride at the LA auto show, which kicks off later this month, but it is giving us a preview of the new SUV. Kia says there will be a number of trim levels offered, including this one here, called X-Pro, which is meant to look more rugged. While we see some styling inspiration from the current generation, there’s also some big departures, like a much bigger grille, as well as some smaller changes, like flush-mounted door handles. We think part of the reason the grille is so much bigger is because the overall vehicle grew in size. The wheelbase was stretched by 3-inches, it’s 2.3-inches longer overall and 1-inch taller. The interior also looks like almost every surface was touched by designers and is highlighted by a large digital display screen that floats on top of the dash. No word on powertrain offerings yet, but Kia calls the new Telluride its “flagship gas-powered SUV.”

TESLA LOSES YET ANOTHER EXEC
Tesla is losing another program manager. Yesterday, the head of the Cybertruck and Model 3 left and soon after, the head of the Model Y program, Emmanuel Lamacchia, also announced he’s leaving Tesla after 8 years with the company. Tesla has seen a bunch of talent leave the company this year with at least 10 high-level leaders and executives stepping away.

XIAOMI YU7 OUTSELLS TESLA MODEL Y
And as we reported yesterday, Tesla struggled in China last month. Its sales fell 10% to just under 61,500 units in October. But that figure also includes China-made exports and when you exclude those vehicles, Tesla sold 26,100 units in the domestic market. And that means the Xiaomi YU7, which only started deliveries in July, outsold the Model Y last month. According to data from the China Passenger Car Association, Xiaomi sold 33,600 YU7s, easily outpacing the Model Y. Overall, Xiaomi has delivered more than 70,000 YU7s since its launch in July.

And that brings us to the end of today’s show. Thanks for making Autoline a part of your day.