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Plus, stay tuned because later in the show I’ll tell you why one highly-regarded battery expert says Europe is 20 years behind China.
Welcome to EV News China — the podcast dedicated to the world’s largest electric vehicle 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.
NIO PUSHES WORLD MODEL 2 TO 460,000 CARS
NIO released Banyan 3.3.0 software on January 28th 2026, deploying the second NIO World Model assisted-driving version to over 460,000 cars in China. The update reaches back to 2021 ET7 models, fully utilizing their four Orin-X chips.
Banyan 3.3.0 represents NIO’s largest overhaul since first-generation NWM launched July 2025, when owner feedback proved cautious and development slowed. This release tests whether World Model architecture can improve at scale beyond presentations.
AutoLab reports urban performance now matches China’s leading systems, with steadier decision-making and smoother control. The system judges gaps, executes safe lane changes and maintains tidy speed and steering during overtaking, while staying behind slower vehicles when upcoming turns require it rather than cutting back in later.
On tight city roads, the car reacts more prudently to oncoming two-wheelers, backing off and steering away without stopping abruptly. Battery-swap automation extends functionality: voice commands navigate to stations, handle gate entry, queue management, swap parking and resumption of navigation, though U-turns in heavy traffic still show minor steering adjustments.
The upgraded World Model employs closed-loop reinforcement-learning connecting perception, planning and control, improving route keeping, junction handling, traffic-flow avoidance and efficiency-minded lane changes. Founder Li Bin approved higher cloud-computing spending and at least three major 2026 assisted-driving updates to refine long-tail performance, while Banyan 3.3.0 adds iPhone digital key support.
https://bit.ly/4qHaAvW
XPENG X9 PUSHES MPV RANGE AND CHARGING HARD
Xpeng opened pre-orders for the 2026 X9, an all-electric MPV claiming world’s longest range for pure-electric seven-seaters at 750 km with 5C battery technology. The model targets China’s expanding family-hauler segment where range and charging speed remain key purchase factors.
The 5C battery enables very high-rate fast charging, positioning Chinese manufacturers at the forefront of rapid charging technology. Pairing 750 km range with sustained 5C charging in real-world use raises the performance bar for large electric vehicles domestically and internationally.
Xpeng equips the X9 with three Turing AI chips, reflecting how Chinese carmakers now emphasize computing power alongside battery capacity. This processing capability powers advanced driver-assistance and in-car services as local buyers expect high-specification electronics in family transport.
Active rear-wheel steering, typically reserved for premium saloons and SUVs, enhances maneuverability in China’s tight urban car parks and crowded residential compounds. The feature gives long-wheelbase seven-seaters practical advantages in dense city environments.
While independent test data awaits, the combination of 750 km stated range, 5C battery technology, three Turing AI chips and active rear-wheel steering demonstrates Chinese EV manufacturers advancing hardware and software integration across everyday segments. Electric people-carrier competitors entering China must match these specifications to remain competitive in the rapidly evolving family vehicle market.
VW TURNS TO CHINA FOR ITS EV BRAIN
Volkswagen Group China announced its CEA (China Electronic Architecture) entered delivery by late 2025, marking a significant leap in localized development. The ID.UNYX 07, a mid-size sedan measuring 4,853mm on a 2,826mm wheelbase, became the first model running CEA at the Anhui plant.
CEA emerged from collaboration between Volkswagen Group China Technology Company, CARIAD China, and XPENG, following VW’s $700m investment for a 4.99% XPENG stake in July 2023. The architecture reached mass production just 18 months after conception, the fastest deployment in Volkswagen’s history.
The system represents the first zonal electronic architecture deployed at scale across battery-electric, hybrid, and combustion models. CEA’s zonal control layout and central computing platform reduce ECU count by 30% while enabling hardware-software decoupling and virtual validation.
Development efficiency in China improved 30%, while costs for key models dropped up to 50%. The architecture supports AI-driven smart cockpits, advanced driver assistance, and over-the-air updates.
Five battery-electric models using CEA will launch across A and B segments in 2026, including the first pairing CEA with Volkswagen’s CMP platform. Volkswagen plans over 20 new energy models for China in 2026, all powered by architecture now designed and built locally rather than in Wolfsburg.
LI AUTO BETS ON AI REBOOT AFTER RARE SALES SLUMP
Li Auto sold 406,300 vehicles in 2025, an 18.81% year-on-year decline that made it the only major Chinese EV maker with negative full-year growth. The company is now restructuring R&D to reverse course.
The firm will split research and development into three units: Base Model Team, Software Ontology Team, and Hardware Ontology Team. The most significant change targets autonomous driving, with the former team folding into the Software Ontology Team under Gou Xiaofei, now vice-president of Intelligent Space overseeing both intelligent cabin and driving while reporting to president Ma Donghui.
Lang Xianpeng, previously senior vice-president of autonomous driving, will lead the Hardware Ontology Team focusing on robotics development and reporting to Ma, but no longer running autonomous driving. Zhan Kun’s Base Model Team will integrate VLA and Li Auto’s in-house chips, reporting to chief technology officer Xie Yan.
Founder and CEO Li Xiang told staff the reshuffle addresses a new round of AI competition. He positions embodied AI as Li Auto’s core skill for the next decade, calling cars “robots” and framing trillion-yuan revenue as just a starting point.
The restructure follows struggles with the pure-electric MEGA and disappointing i8 and i6 performance. Tighter integration between chips, base models, software and robotics aims to translate embodied-AI ambitions into tangible results: higher Li Auto sales in 2026.
https://bit.ly/4k9QGHJ
CHINA GIVES TESLA ITS TOUGHEST TEST
China poses the “toughest competition” to Tesla, according to Elon Musk, because it leads in artificial intelligence and manufacturing. That pairing proves decisive as EVs evolve into rolling computers where firms controlling both code and production set prices, standards, and market direction.
China built this advantage over two decades through dense supply chains, large domestic demand, and manufacturers treating vehicles as data products. Chinese firms already undercut Western rivals on cost while accelerating model cycles and vertical integration, feeding vast streams of driving and user data into large models and operating systems.
Local companies hold connectivity, payments, and services advantages through super-apps and domestic cloud providers. For Tesla, China represents both its largest growth market and most capable rival base, with Chinese firms shipping hardware globally while refining platforms and squeezing procurement costs.
Policy reinforces this lead through support for battery supply chains, charging networks, and intelligent vehicle pilots that embed AI deeper into cars and factories. Western regulators prioritize security, data protection, and trade exposure over industrial scale.
Musk’s assessment signals the EV contest’s next phase: less about battery capacity, more about AI integration. Chinese manufacturers demonstrate that combining advanced software with manufacturing efficiency creates a compelling formula for electric transport’s future, pushing the entire industry toward smarter, more connected vehicles.
https://bit.ly/4t6sQjT
CHERY EYES JLR LINES AS BRITAIN SEEKS EV JOBS
Britain wants more carmaking jobs while Chery seeks a European base, with interests converging on Jaguar Land Rover’s underused production lines. The British government backs talks that could see Chery use spare JLR capacity, delivering manufacturing headlines without greenfield factory costs while giving Chery local output as Europe scrutinizes Chinese EV imports.
The approach reflects a broader pattern as Chinese carmakers seek asset-light assembly closer to buyers under trade pressure. The UK, outside EU industrial schemes but eager to demonstrate manufacturing capability, has few large modern car plants remaining, making JLR’s footprint both valuable and politically sensitive when idle.
For Tata-owned JLR, a deal could fund its electric transition while maintaining facility utilization between model cycles. Chery would gain local credentials, smoother logistics, and protection against calls for Chinese-built EV curbs.
Sharing factories with a Chinese partner would mark a significant shift for Britain’s premium marque and could spark debate over technology, branding, and industrial strategy. No binding agreement exists yet, but ministerial support signals how global carmaking power has tilted towards China and Britain’s limited negotiating capacity.
The arrangement could accelerate electric vehicle production in Britain while helping both companies navigate the transition to electrified transport, demonstrating how international partnerships may shape the industry’s future.
https://bit.ly/4t0UsqF
GEELY BRINGS GALAXY TO NORDIC ICE
Several Geely Galaxy electric and hybrid models arrived in Europe for cold-weather testing, running routes from Gothenburg to Nordic proving grounds including Colmis. The convoy includes the EX5, demonstrating the Chinese group’s commitment to proving its latest battery and hybrid platforms can handle northern winters.
Gothenburg serves as Geely’s European engineering hub through its Volvo Cars ownership. Testing Galaxy-branded vehicles and the EX5 through Scandinavian conditions benchmarks Chinese-developed hardware against Swedish engineering and European regulatory standards.
Nordic trials test battery thermal management, cabin heating efficiency, charging performance, and electronic stability systems beyond simple range verification. For electric and hybrid vehicles built for China, where buyers demand year-round reliability and smart energy use, sub-zero validation has become essential rather than optional.
Publicizing European testing addresses rising political scrutiny and tariff discussions. Running Galaxy models and the EX5 between Gothenburg and Colmis signals longer-term plans to align products with European use-cases and regulations, even as initial volumes target the Chinese market.
Proving Galaxy cars and the EX5 perform equally well on Nordic ice and Chinese roads strengthens domestic appeal while maintaining export optionality. Winter testing in Sweden now integrates into the development cycle for vehicles primarily sold in China, demonstrating how electric vehicle makers increasingly validate performance across diverse climates.
https://bit.ly/4c5if2y
HUAWEI AND GAC TAKE QIJING WAGON INTO THE DEEP FREEZE
As temperatures in parts of China have fallen below -30C, Huawei and GAC are using the cold snap to run winter tests on a sporty Qijing-branded wagon. The vehicle remains under wraps, but the test campaign signals where competition is heading.
China’s EV market is moving past subsidies and range races toward a practical question: which models still perform in bitter cold. Low temperatures stress batteries, power electronics, and thermal systems, so Qijing must cope with a north-east winter to compete with established local brands and the foreign marques still shipping volume into China.
Testing below -30C suggests the partners want more than basic compliance. Range retention, fast-charging performance, and cabin comfort all suffer in deep cold, and driver-assistance sensors and lidar units can degrade too—key hardware for Huawei’s positioning.
A wagon body style also implies family and fleet use-cases where cold-weather penalties stand out, such as winter range dropping by a third and longer charging stops. Proving dependable start-up, heating, and charging in harsh conditions would strengthen both Huawei’s stack strategy and GAC’s need to differentiate.
https://bit.ly/4t7O2pP
CHINA HITS 20% EV SHARE IN HEAVY TRUCKS
China sold 233,200 electric heavy-duty trucks in 2025, up 181.9% year-on-year, capturing 20.5% market share—an 11.3 percentage point gain from 2024, per EVTank and the China YiWei Institute of Economics. This adoption rate sets a global benchmark and gives Chinese suppliers a technology and scale advantage.
Heavy trucks generate significant freight emissions, making electrification essential. The segment now ranks as the fastest-growing new-energy category after passenger cars.
XCMG Group led with 15.4% market share, ahead of SANY Group and FAW Jiefang. The top three manufacturers captured 42.9% of sales.
Prismatic LFP batteries command over 99% of installations due to low cost, durability and safety. Total battery capacity reached 96.7 GWh, up 188.9% year-on-year.
https://bit.ly/4qJlMYV
EUROPE’S BATTERY GAP WITH CHINA IS MOSTLY FACTORIES
Europe’s electric vehicle sector lags China by two decades in battery technology, according to Professor Ferdinand Dudenhöffer from Germany’s Center for Automotive Research. Chinese automakers captured 9.5% of European market share in December 2025, exceeding 100,000 monthly units for the first time.
By 2025, over 70% of batteries in European electric vehicles came from Chinese suppliers. Chinese manufacturers benefit from 30% lower production costs and 50% faster development cycles compared to European counterparts. European battery makers struggle as Sweden’s Northvolt faces bankruptcy and France’s ACC has paused factory expansion.
Chinese battery leaders CATL and BYD now manufacture directly in Europe through partnerships. CATL produces batteries with BMW in Germany, while BYD’s collaboration with Stellantis on lithium iron phosphate batteries has reached mass production. China controls 75% of global battery production capacity, with European costs running 50% higher and 80% dependency on imported critical materials like lithium and nickel.
The technology gap extends beyond batteries into autonomous driving and smart cockpit systems, where Chinese firms like Horizon Robotics and Huawei lead development. Dudenhöffer emphasizes that European-Chinese cooperation represents essential progress, potentially transforming Europe into a collaborative technology hub that combines strengths from both regions while accelerating the electric vehicle transition.
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