Category: News

On Thursday 7 May 2026, Lexus unveiled the Lexus TZ, the Japanese brand’s new large, all-electric SUV. It heralds a new vision of luxury for the Japanese manufacturer: transforming the car into a true ‘Driving Lounge’, a space designed as much for the journey as for the drive itself. With this 5.10-metre-long model and its three rows of seats, Lexus is not simply seeking to launch a new electric family SUV. Above all, the manufacturer wants to demonstrate how electrification can redefine the in-car experience, combining silence, comfort, refinement and immersive technologies.

A new chapter in Lexus’s electrification

The launch of the TZ is part of the far-reaching transformation Lexus has been undertaking for several years. Following the Lexus UX 300e, the Lexus RZ and the various hybrid models in the range, the brand is now stepping up its efforts in the premium all-electric vehicle segment.

The TZ is thus the largest electric SUV ever produced by Lexus and demonstrates the manufacturer’s ambition to move upmarket in the sector for large, premium electric family cars. The Japanese manufacturer is no longer just talking about electric mobility, but about a new way of travelling.

Chief Engineer Takeshi Miyaura sums up this philosophy:

“We have sought to offer a new Lexus experience (…) In addition to the traditional ‘seeing, riding and driving’ experience, we now offer the pleasure of ‘spending time’ inside the vehicle.”

An approach that stands in stark contrast to conventional electric SUVs, which often focus on performance or pure technology.

An SUV designed as a true ‘Driving Lounge’

At the heart of the TZ project lies this new concept, dubbed the ‘Driving Lounge’. The idea is simple: to transform the cabin into a premium relaxation space, inspired by traditional Japanese architecture and the principle of Omotenashi hospitality, which is so dear to Lexus.

In practical terms, the TZ features a six-seat layout with three rows of seats and two individual ‘captain’s’ seats in the second row.

In terms of dimensions, the vehicle measures 5.10 metres in length, 1.99 metres in width and 1.70 metres in height. These dimensions give the SUV a wheelbase of 3.05 metres, resulting in a particularly spacious interior. The press release states that the absence of a transmission tunnel or fuel tank has allowed the rear seats to be lowered, thereby improving passenger comfort.

Even the third row offers plenty of legroom and headroom – a feature that is rarely impressive in seven-seater electric SUVs. The large panoramic sunroof, billed as the largest ever fitted to a Lexus, plays a major part in creating this sense of space.

A high-tech and ultra-refined interior

Lexus goes to great lengths to perfect the interior ambience.

The TZ features a new generation of slimmer, more sculpted seats; those in the front and second rows are heated and ventilated, whilst the third row can also be fitted with heating, depending on the model.

The interior design takes a minimalist approach, featuring an extremely slim dashboard that incorporates the new ‘Responsive Hidden Switch’ controls. Hidden when not in use, they appear when a hand approaches the surface.

The 12.3-inch digital instrument cluster works in conjunction with a 14-inch central multimedia screen based on the new Arene software platform.

In particular, the system enables connected cloud navigation;

• advanced management of electric vehicle journeys;
• smart charging planning;
• remote updates;
• a digital key that can be shared with six users;
• advanced streaming and connectivity features.

The package can be complemented by a 21-speaker Mark Levinson audio system with 3D sound. This truly creates an interior designed for spending time in and for making every journey, long or short, a pleasant experience.

An exterior design that combines power and aerodynamics

Visually, the TZ boasts an imposing yet very fluid silhouette. Lexus refers to this as ‘Provocative Simplicity’, a new design direction that blends minimalist elegance with a confident presence.

Despite its substantial size, the aerodynamic design achieves a drag coefficient of just 0.27, which is particularly low for an SUV of this size.

The front end features the new Lexus design language, with a modernised interpretation of the grille and double-L light signatures. Viewed from the side, the semi-flush door handles, large, taut surfaces and aerodynamic 20- or 22-inch wheels reinforce the model’s premium feel. At the rear, the sloping roofline and flared wings give the TZ a very imposing, almost stately stance.

Up to 408 horsepower and a range of 530 kilometres

Let’s now turn to the technical specifications of this Lexus TZ. It will be available with two electric powertrains featuring DIRECT4 all-wheel drive.

The first will be the Lexus TZ 450e, which will produce 313 horsepower (230 kW). The second, the Lexus TZ 550e, will be equipped with a 408-horsepower (300 kW) engine and will accelerate from 0 to 100 km/h in just 5.4 seconds.

As for the battery, both versions are powered by the same 95.8 kWh lithium-ion battery. The claimed range varies between 480 and 530 kilometres, depending on the version. 

When it comes to charging – a key factor for an EV – the SUV supports AC charging up to 22 kW and, more importantly, DC fast charging up to 150 kW. This means the battery can be charged from 10% to 80% in around 35 minutes.

A driving experience designed with comfort as the top priority

Although the TZ produces up to 408 horsepower, Lexus places greater emphasis on comfort and control than on pure sportiness.

The SUV features a reinforced chassis, a specially designed suspension, rear-wheel steering, advanced electronic braking, and energy recovery with five adjustable settings.

The DIRECT4 system automatically distributes torque between the axles to improve stability and traction. It also features the ‘Interactive Manual Drive’ system, previously seen on the RZ, which simulates the operation of a virtual eight-speed manual gearbox.

Lexus aims to reinvent the large premium electric SUV

With the TZ, the Japanese manufacturer is seeking to offer an alternative that differs from the ultra-technological or highly showy approaches already on the market.

Whilst some competitors focus primarily on performance or maximum range, Lexus places the time spent on board, quietness, comfort and serenity at the heart of the project. A very Japanese vision of luxury that is now going electric. The TZ will go on sale in France in early 2027.

The return was eagerly anticipated, and we already know more about it. With the new Opel Corsa GSE, the German brand is marking the return of its sporty city car, but with a radically different approach. Gone are the combustion engines of the old GSi and OPC models; in their place is a high-performance electric compact. It is part of the manufacturer’s wider transformation, as it now seeks to combine electrification with driving pleasure in a segment where ‘small sports cars’ had almost disappeared.

A radical Corsa… and the most powerful ever produced

A few weeks ago, the first details and images of the Opel Corsa GSE were revealed during testing at the Nürburgring, and we now know a little more about it. On paper, this Corsa GSE marks a real generational leap. With 207 kW (281 hp) and 345 Nm of torque, it is quite simply the most powerful production Corsa in history.

Whilst the manufacturer had already predicted impressive performance figures, with 0–100 km/h in 5.9 seconds, this sporty little city car will actually reach that mark in 5.5 seconds. This figure places it firmly in the territory of much larger sports hatchbacks. Top speed is limited to 180 km/h, a standard choice to preserve range and manage thermal efficiency.

There are three driving modes to suit your preferences:

• a Sport mode that unleashes the full power,
• a Normal mode limited to 231 hp,
• and an Eco mode limited to 150 km/h to prioritise fuel efficiency.

Opel has fitted a 54 kWh battery under the floor, combined with a dedicated thermal management system, which is essential for maintaining performance over the long term.

A bold design, blending tradition and modernity

Visually, too, we know more, and the least we can say is that Opel isn’t going for a low-key look. The Opel Corsa GSE boasts a distinctly sporty design, crafted to be instantly recognisable.

At both the front and rear, the bumpers feature a sharper design, with redesigned air intakes and vertical elements that visually emphasise the car’s width. The wider wheel arches, highlighted by black trim, reinforce this more aggressive stance.

The look is dominated by 18-inch alloy wheels, fitted with Michelin Pilot Sport 4S tyres (215/40 R18), which are clearly performance-oriented. Behind these specially designed wheels, the apple-green Alcon brake callipers bearing the GSE logo are clearly there to catch the eye – a small detail, certainly, but one that immediately emphasises the car’s sporty character. The black roof and rear spoiler visually lower the car’s profile.

Inside, the German brand pays homage to its classic sports cars whilst updating the design language. The sports seats feature Alcantara inserts with integrated headrests, finished in a black, grey and yellow chequered pattern – a direct nod to the classic GSi models. The yellow seatbelts further reinforce this identity.

The atmosphere is both more high-tech and more immersive. The driver is faced with a customisable digital instrument cluster, complemented by a 10-inch central touchscreen. According to the brand’s press release, these interfaces incorporate data specific to the GSE world: G-forces, acceleration performance, battery management and real-time dynamic information.

The return of a historic crest in a new era

Behind this Corsa GSE lies an image issue as well. The GSE label – which stands for “Grand Sport Electric” – is gradually replacing the brand’s former sports designations, namely GSI and OPC.

A repositioning that has already begun with the Opel Mokka GSE, and which reflects a clear ambition: to make electric vehicles a source of excitement.

The Corsa GSE thus follows in the footsteps of the Corsa GSi of the 1980s and the OPC models of the 2000s, but with a new challenge: to prove that driving pleasure can survive the move away from the internal combustion engine. This is, in fact, what the sceptics of electric technology are trying to convince us of.

An electric strategy that’s all about enjoyment too

With this model, Opel is confirming a major trend: the return of high-performance small sports cars, made possible by electric power. The absence of penalty charges, instant torque and high performance are breathing new life into a segment that had virtually disappeared under regulatory pressure. It will be positioned in the same segment as the Peugeot e-208 GTI, the Lancia Ypsilon HF, the Abarth 600e from Fiat, and the future Volkswagen ID.Polo GTI.

The Corsa GSE, along with the rest of the Blitz brand’s sports range, will be officially unveiled at the 2026 Paris Motor Show, ahead of its expected launch by the end of the year. However, the price has not yet been announced. 

Volkswagen is banking on the reputation of its legendary Polo to make its debut in the rapidly expanding market for electric city cars. The ID Polo embodies the brand’s DNA: a universally appealing design, remarkable interior space, versatility and a starting price of €24,995 for the ‘small battery’ version (325 km range). Manufactured in Spain, the Renault R5’s new rival will hit the roads at the end of the summer.

The Polo: over 20 million units sold in 50 years 

With the launch of the ID Polo, Volkswagen is continuing the legacy of a popular and world-renowned car, with over 20 million units produced since 1975. The Polo has long been nicknamed ‘the Ant’ for its robustness and reliability, all packed into the unassuming body of a small car. The 100% electric ID Polo aims to capture these qualities of versatility. “The ID Polo is arriving at just the right time in a rapidly expanding market: that of electric city cars,” says Sylvain Charbonnier, Managing Director of VW France. “When you see it, you immediately recognise the VW style through its design and the quality of its materials. We’ve included plenty of nods to the original Polo, such as the speedometer. This ID Polo carries on the brand’s legacy and, without being presumptuous, we’re very confident in its ability to appeal to electric car drivers.” 

The spaciousness of a Golf in the size of a Polo

Measuring 4.05 m in length (2 cm shorter than the petrol-powered Polo, which remains available in the range), the ID. Polo is built on the new MEB+ platform used across the Volkswagen Group (notably the Cupra Raval and Skoda Epic). This architecture creates more space on board, including rear legroom and a boot with 25% more capacity: 441 litres (up to 1,240 litres with the seats folded down). It offers the interior space of a Golf within the dimensions of a Polo. Five people can therefore be accommodated on board and should be more comfortable than in a Renault R5, its designated rival. This is a factor that should weigh heavily in users’ decisions. The quality of the materials and the redesigned ergonomics, with more physical controls (one button, one function), mark a correction of the flaws previously noted on the ID models.

Two battery capacities

The VW city car will be available with two battery capacities: a ‘small’ 37 kWh battery (LFP chemistry) offering a range of 325 km, paired with either a 116 hp or 135 hp motor. However, from launch, it is the “large” 52 kWh battery version (NMC chemistry), with a range of 450 km and a 211 hp motor, that will be available to order. “Unlike our competitors, we offer fast charging as standard across the entire ID Polo range,” explains Sylvain Charbonnier. “As customers become increasingly interested in electric technology, it is important to provide this charging convenience. For the small battery, it takes 24 minutes to charge from 20% to 80%, and 3 minutes longer with the large battery.”

From €24,995

Already available to order, the entry-level ID Polo (37 kWh battery and 116 hp) starts at €24,995. Volkswagen manufactures the batteries and assembles the car in Europe, so the model is eligible for the ‘Electric Vehicle Incentive for Private Individuals’, bringing the price down to €19,825. In terms of price, it sits in the lower-middle range of European electric city cars. However, it is not yet clear whether the ID Polo will be eligible for the government’s relaunched social leasing scheme, although the model is expected to receive the eco-score, according to ADEME criteria.

The start of a long list of IDs

This launch marks the start of a major wave of electrification across the VW range. Eight models will be rolled out gradually. The ID.3 Neo (a revamped version of the ID.3) – a rival to the Renault Megane e-Tech – arrives next July. The ID. Polo will feature a sporty GTI variant. The Paris Motor Show will be the venue for the unveiling of the ID. Cross (an SUV derivative of the ID. Polo). “This expanded range is justified in the French market,” emphasises the CEO of VW France. “The geopolitical context encourages us to continue with electrification, although our electric sales were already doing well even before the crisis. By 2025, 30% of Volkswagens sold were electric, with the ID 3 and ID 4 leading the way.” 

The Polo ID is set to amplify this trend, particularly as the German brand is under pressure from the arrival of more affordable Chinese models. “This competition must challenge us and push us to perform better and listen to our customers. Did you know that 2 million motorists in France drive a VW? We must therefore continue to satisfy them with today’s technologies,” says Sylvain Charbonnier.

The energy crisis is hitting the ride-hailing model hard. Faced with soaring fuel prices since the start of the conflicts in the Middle East, Uber is rolling out an emergency plan in France: lower fares, reduced commission rates and new incentives to speed up the switch to electric vehicles. Behind these announcements, the American firm’s aim is to keep drivers in business at a time when their costs are skyrocketing.

A fuel crisis that is undermining the entire sector

The job of a private hire driver is often seen as precarious, but this is now more true than ever. Indeed, for several weeks now, there has been a sharp rise in petrol prices. As everyone knows, this increase is linked to geopolitical tensions in the Middle East; the price per litre has now risen above €2, which is having a direct impact on drivers’ incomes.

For the approximately 30,000 private hire drivers active on ride-hailing platforms in France (Uber, Heetch, Bolt), the impact is immediate. Drivers using petrol-powered vehicles are seeing their running costs rise sharply, whilst their working conditions are also deteriorating: longer waiting times at petrol stations mean fewer journeys are completed, leading to a drop in profitability.

Uber is banking on a 30% reduction in fares to boost demand

Very recently, the US ride-hailing giant announced several measures to address these issues. The first is to adjust prices to boost business. Uber has announced a 30% reduction in fares for its Uber X Share carpool service. This measure is described as temporary.

The idea is simple: to attract more customers to offset the decline in drivers’ earnings. And the solution is already in place. Since early March, these shared rides have surged by 54%, demonstrating strong demand for cheaper journeys in an inflationary climate. In other words, Uber is seeking to offset squeezed margins by increasing volume.

Lower commission rates for the most active drivers

At the same time, the platform is also adjusting its own model. Around 1,000 of its most active drivers will benefit from a “significant reduction” in service fees through the Uber Pro programme.

The aim is clear: to directly offset the rise in fuel costs for those who drive the most. This is a targeted measure that prioritises those who are most dependent on their private hire work.

Electric vehicles are becoming an economical solution, not just an environmentally friendly one

But beyond these emergency measures, Uber is above all accelerating its fundamental transformation: moving away from combustion engines. It is important to note that, since 2022, it has no longer been possible for new drivers to register with a diesel-powered vehicle. The platform has announced: “a one-off subsidy of €1,500 towards the hire of new or used electric vehicles, with unlimited mileage via Flexifleet”.

This initiative already appears to be having an impact. Between February and April, enquiries about switching to electric vehicles rose by 60%, whilst the uptake of electric vehicles increased by five percentage points.

This strategy is backed by a €75 million fund, launched in 2020 and partly financed by customers, to support drivers’ transition.

A fleet that is already largely electrified

The results are clear. In just a few years, Uber’s fleet in France has changed dramatically:

• diesel, which accounted for over 85% of vehicles in 2020, now accounts for less than 5%;
• 93% of vehicles are now hybrid or electric;
• and around 25% are fully electric.

In the same vein, the company recently announced the acquisition of HysetCo’s fleet of hydrogen-powered taxis in Paris, adding a further 800 vehicles to its ecosystem.

These measures appear to be an immediate response to the fuel crisis. But they also reflect a more fundamental shift in the Uber model. The sharp rise in oil prices is acting as a catalyst: it is undermining the viability of petrol and diesel vehicles and making electric vehicles a more economically attractive option for drivers. One key question remains: will these adjustments be enough if the energy crisis becomes a long-term issue?

ACC is entering a new phase in its development. The European manufacturer of electric vehicle batteries has announced the appointment of Allan Swan as Chief Executive Officer with effect from 1 May 2026, with a clear mandate: to accelerate industrial ramp-up in a challenging environment. This change in leadership comes as the group faces operational difficulties at its site in the Hauts-de-France region and increased pressure from Asian competitors.

A change of leadership at a critical juncture

ACC is changing leadership at a pivotal moment in its industrial development. Indeed, the joint venture (between Stellantis, Mercedes and TotalEnergies) has so far failed to turn its ambition into a tangible industrial reality. 

And to achieve its goals, the company has decided to appoint a new leader. The man chosen for the role, Allan Swan, is no ordinary figure: he was previously head of Panasonic Energy USA, where he oversaw the ramp-up of two gigafactories supplying Tesla, amongst others. His expertise is directly relevant to ACC’s current challenge: moving from industrial promise to controlled mass production.

Allan Swan said he was “honoured by the trust placed in me by ACC’s shareholders and excited to be joining the company at such a crucial time for the electric vehicle industry.”

Yann Vincent, the project’s architect, is stepping down

This change also marks the end of an era. Allan Swan is taking over from Yann Vincent, who is retiring after six years at the helm of the company, having been there since its inception.

Under his leadership, ACC laid the foundations for the European battery industry: launching the first gigafactory, establishing an industrial ecosystem and developing clean technologies through its R&D centre in Bordeaux-Bruges.

But the role of a builder is not that of large-scale industrial production. The handover precisely reflects this shift: after the construction phase comes the industrial production phase.

A ramp-up that proved more difficult than expected

That is the crux of the matter. ACC itself acknowledged last February that ramping up production at its plant in northern France is “taking longer and costing more than anticipated”.

In this industry, everything hinges on process control: production volumes, scrap rates and line stability. Yet it is precisely these factors that determine profitability.

The group nevertheless reports progress: module production has doubled in the space of a few months and the rate of unusable batteries is falling. However, these advances are still insufficient to fully stabilise the business model.

Increasing external pressure

These internal difficulties are occurring against the backdrop of a tighter market.

On the one hand, demand for electric vehicles continues to grow, albeit at a slower pace than expected. On the other hand, European manufacturers – ACC’s main customers – are taking a more cautious approach to their investments.

Above all, competition from Asia is a major challenge. Companies such as BYD and CATL largely dominate global battery production, benefiting from low costs and a high level of industrial maturity. Against this backdrop, ACC must both catch up in terms of industrial capacity and secure its markets.

A strategic project for European sovereignty

Despite the challenges, the stakes remain high: ACC is at the heart of the European strategy for industrial sovereignty.

Today, almost all the batteries used in Europe are produced by Asian manufacturers. ACC’s ambition is precisely to reduce this dependence. The joint venture’s new CEO is confident on this point: “I look forward to working with the ACC teams to accelerate growth, expand our manufacturing capacity, and support Europe’s ambition for clean, competitive and energy-independent mobility.”

But this ambition comes at a cost. The group has, in fact, put its plans for new factories in Germany and Italy on hold

A new, more demanding phase

The appointment of Allan Swan appears to be a logical choice. He is taking over a well-structured but vulnerable company that is making its own energy choices, as ACC has chosen to focus on the NMC (nickel-manganese-cobalt) segment, a battery chemistry valued for its energy density but more expensive than LFP (lithium-iron-phosphate). 

That is precisely what this new phase is all about: turning an industrial ambition into a sustainable economic reality. And it is precisely in this area that the new leader is expected to deliver.

The French electric car market is reaching a new milestone. Sales volumes are rising significantly, certain models are establishing themselves firmly at the top of the sales charts, and the market share continues to exceed a quarter of all new registrations. Yet despite this momentum, some consumers remain sceptical.

A clear improvement, but in a challenging market

The figures for April 2026 confirm that the genuinely positive trend observed over the past few months is continuing.

With 36,216 registrations, electric car sales have risen by 41.8% year-on-year and now account for 26.2% of the market, according to data provided by industry players.

In the first four months of the year, the market has seen cumulative sales of over 148,000 electric vehicles, compared with around 100,000 during the same period in 2025. However, this increase must be put into perspective straight away.

The global car market, meanwhile, remains relatively stable (-0.26%).

Models that are finally shaping the market

This shift in scale is evident in the sales figures.

In April, the Renault 5 topped the market with 3,418 registrations. It was ahead of the Renault Scénic E-Tech, with 2,114 units, and the Citroën ë-C3, which recorded 1,611 units. The Tesla Model Y, long the market leader, slipped to fourth place with 1,456 units.

This ranking shows that the electric vehicle market is no longer driven solely by a handful of premium or high-profile models. More affordable vehicles are beginning to drive the market, with sales volumes reaching significant levels.

Another interesting point is that French models now occupy a prominent position at the top of the rankings, reflecting a rebalancing of the industry and the market.

Growth largely driven by

This acceleration is not spontaneous. It is the result of a combination of very specific factors.

According to AAA Data and industry analysis, this growth is primarily due to a fall in prices across several segments, with some city cars seeing price reductions of around 10% to 12%.

This is also due to the rapid expansion of the range, with over 180 models now available, compared with just over 110 two years ago.

Added to this are public policies, which continue to play a decisive role, whether through incentives, energy-saving certificate schemes or social leasing schemes.

This point is key to understanding the market: growth is happening, but it remains partly driven by external factors.

The crucial role of fleets

Another driving force, often less visible, plays a significant role in this trend: businesses. According to data published by AAA Data, company fleets are accelerating their transition, driven by a combination of tax incentives and regulatory requirements.

They now account for a growing proportion of electric vehicles, with figures well above those seen among private individuals.

This trend has a major indirect effect: by rapidly replacing their vehicles, fleets are feeding the second-hand market, which in turn facilitates the wider adoption of electric vehicles over time.

Private individuals remain cautious

But whilst the figures seem to suggest that things are moving in the right direction for the world of electric mobility, a study carried out last January by the Institut Mobilités en Transition and IDDRI challenges this view.

French people who still drive petrol or diesel cars aren’t ruling out electric vehicles, but they aren’t switching over in droves either.

Their stance is more nuanced: they are waiting for assurances.

According to the findings of these interviews, which were conducted in four major French cities (Paris, Bordeaux, Saint-Étienne and Dijon), the price of a new EV remains a key factor, as do range, charging facilities and the resale value of their electric vehicles.

This discrepancy helps to explain some of the current dynamics of the market. Demand exists, but it is most evident when economic conditions become favourable, particularly in the context of social leasing schemes.

It should also be noted that these interviews were conducted before the rise in fuel prices caused by the conflicts in the Middle East

A transition that is well underway, but not yet self-sustaining

The French market is therefore in a transitional phase. Electric vehicles are gaining ground, driven by more competitive models, proactive government policies and the leading role played by businesses.

However, it does not yet rely entirely on households’ own choices. This is what creates the current paradox: volumes are rising sharply, but the transition remains dependent on external factors.

Key takeaways

Electric cars are increasingly establishing themselves as a major player in the French car market. Sales figures are strong, the range of models is growing, and the momentum is clearly building.

But this growth remains limited. It still depends on prices, subsidies and regulatory constraints. The real shift will come when these factors become secondary.

Chinese car manufacturer BYD has seen a sharp decline in profitability. Following a 19% drop in net profit in 2025, the group is facing an even tougher start to 2026, with a 55% fall in profit in the first quarter. This sequence of events confirms growing pressure on margins, against a backdrop of intense competition and massive investment.

Profitability down despite a strong year in terms of volume in 2025

In 2025, however, BYD maintained strong sales momentum. The group sold 2.26 million vehicles worldwide – a record high – whilst generating revenue of 804 billion yuan (approximately 101 billion euros), up 3.5%.

However, at the same time, net profit fell to 32.6 billion yuan (approximately 4.08 billion euros), a year-on-year decline of 19%.

The picture is clear: BYD continues to grow, but this growth is becoming less profitable. The manufacturer is selling more, but profit growth is no longer keeping pace.

The price war in China is putting pressure on profit margins

This shift can largely be attributed to the situation in the Chinese market. Competition there is particularly fierce, with a growing number of players and constant pressure on prices. Against this backdrop, manufacturers have launched a full-blown price war to maintain their sales volumes. BYD is no exception, offering substantial discounts on part of its range.

The direct consequence is that margins are shrinking. Whilst the group is maintaining its sales, this is at the expense of reduced profitability. This phenomenon extends beyond BYD alone. It reflects a broader trend in the Chinese electric vehicle market, where growth remains strong but competition is becoming increasingly cut-throat on prices.

A slowdown already evident in the second half of 2025

The decline in results did not happen overnight. It unfolded gradually throughout 2025. The first quarter still posted a very strong performance, with a net profit of 9.15 billion yuan, up by more than 100% year-on-year.

However, the trend then reversed. In the third quarter, net profit fell by 32.6% to 7.82 billion yuan, whilst turnover also fell by 3.05%.

A deterioration that is set to worsen in early 2026

The initial results for 2026 confirm and reinforce this trend. In the first quarter, BYD reported a 55% year-on-year fall in net profit to 4.08 billion yuan. At the same time, turnover fell by 11.8%.

This is a significant sign. In 2025, BYD was still managing to maintain its sales volumes despite falling profitability. By early 2026, the pressure had spread to the business itself, with a decline in revenue. In other words, the downturn was beginning to affect business performance.

Heavy investment that is also weighing on results

Beyond competitive pressure, BYD is also feeling the effects of its own strategy. The group is investing heavily in its manufacturing capacity, technologies and international expansion. This ramp-up, which is essential to sustain its growth, comes at a cost that is weighing on profitability in the short term.

The business model remains focused on volume, innovation and international expansion. However, this strategy entails a phase in which margins are inevitably under pressure. The decline in profit can therefore also be attributed to this combination of external pressure on prices and internal pressure linked to investment.

A group that remains dominant, but is under strategic pressure

Despite this backdrop, BYD remains one of the world’s leading electric vehicle manufacturers, ahead of Tesla in terms of sales volume. Its industrial position remains strong, with the capacity to produce on a large scale and cover a wide range of electrified vehicles.

But the situation is changing. It is no longer simply a matter of growing rapidly, but of maintaining a balance between volume, margins and expansion. Pressure on profitability is mounting just as BYD is stepping up its international expansion, particularly in Europe. This gap between global ambition and economic constraints represents a key strategic challenge for the coming years.

Growth remains steady, but is becoming more challenging

BYD is not in crisis. The group remains profitable, continues to sell on a large scale and retains a dominant position.

But the 2025–2026 period marks a turning point. Growth in volumes no longer guarantees a corresponding increase in profits, and pressure on margins becomes a defining factor.

French greenhouse gas emissions continued to fall in 2025. According to Citepa’s provisional estimate, they fell by around 1.5% year-on-year, reaching approximately 363 to 364 Mt CO₂e excluding carbon sinks. This is a historically low level, but it does not alter the underlying assessment: the current trajectory remains insufficient to meet the climate targets set for 2030.

A new all-time low – but this should be put into perspective

This figure is unprecedented: France has never recorded such low emissions since 1990. Over the long term, the trend is clearly positive, with a reduction of around 31% between 1990 and 2023, continuing into 2024 and then 2025.

However, this low figure should be interpreted with caution. Indeed, the report published in the summer of 2025 by Citepa, an independent body responsible for monitoring GHG emissions, is a provisional estimate based on the first nine months of the year and a projection for the final quarter.

A downward trend that is slowing significantly

To put the reduction in GHG emissions in France into context, it is particularly important to analyse the rate at which it is falling. Whilst the fall in emissions reached 6.8% in 2023 – partly due to the post-crisis energy situation – the rate of decline has slowed significantly since then. Indeed, it fell to 1.8% in 2024, and then to around 1.5% in 2025.

This slowdown shows that the ‘easy’ gains – linked to forced energy conservation, reduced production or improvements to the electricity mix – have already been largely realised, and that further progress now depends on more far-reaching transformations, namely the electrification of energy use, the renovation of buildings, changes in transport patterns and the decarbonisation of industry.

In a statement released in early 2026, Monique Barbut, Minister for Ecological Transition, Biodiversity and International Climate and Nature Negotiations, commented on the matter: “The decline in emissions was confirmed in 2025: this is an encouraging sign, but it is not enough. We must collectively step up our efforts across all emitting sectors.” The assessment is therefore shared: the trend is positive, but it is slowing down.

Real sector-specific declines, but still fragile

To be more specific, the decline observed in 2025 is driven by a number of identified factors.

Over the first nine months of the year, the reduction in emissions was mainly driven by industry (-2 Mt CO₂e) and transport (-1.4 Mt CO₂e).
The manufacturing sector played a key role, making a significant contribution to the overall decline, particularly in the construction materials sector.

But this trend raises a fundamental question: to what extent does this decline reflect genuine decarbonisation, and to what extent does it reflect a slowdown in economic activity?

In the transport sector, which remains the largest source of emissions, accounting for nearly a third of national emissions, the decline remains modest. This is part of a long-term trend, but without any clear break. The same applies to the residential and commercial sectors, where the improvements seen in recent years are due as much to weather conditions and energy prices as to renovation policies.

Conversely, some sectors are showing a slight upturn, such as the energy sector in 2025 (+0.5%), indicating that the trend is not linear.

A trajectory that is incompatible with the 2030 target

This is where the real challenge lies. The forthcoming National Low-Carbon Strategy (SNBC 3) raises France’s climate ambition, setting a target of reducing gross emissions by around 50% between 1990 and 2030, compared with the previous target of 40%. In figures, this would mean a reduction from 548 MtCO₂e to between 270 and 280 MtCO₂e. It is worth noting, however, that according to the latest estimates, emissions in 2025 are expected to be around 363–364 MtCO₂e.

Put simply, to reach this level, emissions would now need to be reduced by around 5% a year between now and 2030. However, the current rate of reduction is around 1.5% to 2% a year.

The gap is significant and, even taking into account cyclical fluctuations, France is not currently on a trajectory consistent with its commitments. Citepa suggests that emissions need to be reduced by around 4.6% per year to remain on track for 2030 – a level never achieved on a sustained basis outside of exceptional periods such as the Covid pandemic. The question is no longer whether emissions are falling, but whether they are falling fast enough. And at this stage, the answer is clearly no.

The key role of public policy

In this context, the issue of public policy takes centre stage. The SNBC sets the direction, structures carbon budgets and guides investment. It plays a vital role in planning, particularly with regard to the decarbonisation of industry, the development of electric mobility and energy-efficient refurbishment, but it cannot, on its own, guarantee that the targets will be met.

The ministry’s statement also emphasises the need to take action: “2026 must be a year of action to put France back on track to meet its climate commitments.” The strategy is in place, the tools are in place, but their implementation remains insufficient at this stage.

Conclusion: progress is still too slow to make a significant impact

With emissions of around 364 Mt CO₂e in 2025, France has reached an all-time high, confirming a downward trend that has been underway for several years.

However, the slowdown observed since 2023 changes the picture. Indeed, at this rate, the current trajectory will not enable us to meet the targets set for 2030. The challenge is no longer to initiate the decline, but to accelerate it significantly and sustainably.

BYD has publicly confirmed that it is in talks with Formula 1 regarding a potential entry into the championship. Speaking at the Beijing Motor Show, Stella Li, BYD’s vice-president, acknowledged that she had met Stefano Domenicali in Shanghai during the Chinese Grand Prix and that she is in regular contact with him. What initially appeared to be mere rumours has now turned out to be a genuine prospect.

From rumour to confirmation

For several weeks now, the name BYD has been doing the rounds in Formula 1 circles as a potential future entrant to the championship. Indeed, BYD’s vice-president attended the Abu Dhabi Grand Prix in December 2025 and was also spotted last weekend in the Shanghai paddock. Stella Li herself told SportMediaset that she is in contact with the highest echelons of the motor racing world: “We met Stefano Domenicali in Shanghai during the Chinese Grand Prix. We have a warm relationship and are in regular contact. I love Formula 1 because it is synonymous with passion and culture, and many dream of taking part in it.”

This is no longer mere speculation. It is an open and public discussion, led by one of the most influential executives at the world’s leading automotive group in terms of electric vehicle sales. Indeed, BYD has overtaken Tesla in this area, and if the group is interested in F1, it is not out of curiosity, but because it sees it as a genuine strategic opportunity.

Timing that is no coincidence

It is indeed the perfect timing for the Chinese manufacturer, as since the start of the year, F1 has not quite been the same as it was five years ago. A new generation of cars and powertrains is being showcased, with electric power now accounting for 50% of total output. This is a structural change that makes the sport much more consistent with the DNA of a group like BYD, a pioneer in hybrid technology.

In this context, entering Formula 1 is no longer merely a matter of image or prestige. It is a platform for demonstrating and testing technology. As Stella Li herself says, the appeal of F1 lies first and foremost in “a genuine opportunity to test our technology.”

The line-up has also changed significantly this year, with Cadillac joining the championship as the 11th team following a long-running battle led by the Andretti family. Audi is officially entering the championship by taking over the former Sauber team. 

12th place: a realistic prospect

The current Concorde Agreement sets the grid at a maximum of 12 teams. With Cadillac as the 11th team, one theoretical place remains available, provided that a call for tenders is issued and a sufficiently robust proposal is submitted.

FIA President Mohammed Ben Sulayem has already expressed a willingness in principle to expand the grid, notably by raising the idea of bringing in a major Chinese manufacturer or a new American entrant; the door is therefore not closed – quite the contrary. However, even if discussions between the two parties continue to progress in the right direction, gaining access to the paddock will not be a mere formality. Proof of this is Cadillac, which took years to convince the FIA.

Which front door?

Several scenarios are circulating in the specialist press, though none have been confirmed at this stage. The most likely option would be to set up a new team, with all that this entails in terms of investment, time and negotiations. This is the most ambitious route, and probably the most complex.

A second scenario, often considered more realistic in the short term, would be to enter via an existing structure: a partial takeover or a strategic partnership with a team already established in the championship. This type of approach would make it easier to enter the world of F1, but would still leave the team dependent on the parent company.

Press estimates suggest annual budgets of around €450 million for a competitive team, not including the costs of entering the championship and the years required to reach a credible level of performance. Let’s take the example of Cadillac once again, as it is the most recent: General Motors had to pay £358 million in anti-dilution fees to the other ten teams to get its team into the championship.

What to look out for

At this stage, BYD is still in talks with Formula 1. Stella Li’s confirmation marks the start of a new chapter, and the coming months will reveal whether these regular discussions with Domenicali lead to a formal bid.

One thing is certain: the nature of the issue has changed. It is no longer a matter of speculating about BYD’s interest in Formula 1. BYD has confirmed this itself. The real question is no longer whether the group wants to get involved, but through which door, with which model, and when.