The scale of China’s automotive industry is hard to comprehend, so some figures help put it into perspective. According to Bloomberg, China’s annual vehicle production capacity has reached 55.5 million units—more than twice domestic demand and enough to meet 65% of global demand for new cars. If all active auto brands headquartered in China are counted, the total would run into the hundreds. The sheer size of the industry has reached a level that is increasingly concerning.

As Reuters has reported, China’s auto market has long been plagued by oversupply, forcing carmakers to export new vehicles that cannot be sold domestically even as used cars. Local governments have supported this practice because

 it helps boost GDP figures—naturally raising concerns over dumping and long-term sustainability. Reuters reports:

For years, China’s auto industry has artificially inflated car sales through a booming, government-backed grey market, in which new vehicles are registered immediately after leaving the factory and then shipped overseas as “used” cars.

After reviewing government documents and interviewing five car dealers and traders, Reuters found that these so-called “zero-mileage” vehicles have never been driven, yet are exported as used cars to markets such as Russia, Central Asia, and the Middle East. This allows Chinese automakers to show growth momentum while offloading vehicles that are difficult to sell at home.

“This is the result of a nearly four-year-long price war, in which companies are fighting for every possible sale at any cost,” said Tu Le, founder of Michigan-based consultancy Sino Auto Insights.

Vehicle pre-registration is not unprecedented globally. The UK, for example, has practiced it for decades, partly due to dealer demo-car registration systems. However, pre-registration specifically for export is rare—and in China’s case, local governments appear to be directly involved. Reuters further reported:

Two Chinese auto industry executives said local governments aggressively court these exporters to set up operations locally, as the businesses both buy and sell a car—doubling transaction value compared with new or used car sales—allowing GDP figures to be artificially boosted quickly.

This strategy is just one sign of how the world’s largest auto industry allows production to far exceed demand, fueling a prolonged domestic price war and triggering accusations of overseas dumping.

If these vehicles are indeed sold abroad below cost, that would clearly constitute dumping. Given the apparent level of official support, the artificial inflation of GDP figures through such means also appears highly unusual. Reuters added:

Chinese documents show that local government support has taken many forms, including simplified paperwork, extra quotas for local vehicle registration, and the establishment of free warehouses for zero-mileage used cars near China’s land and sea borders.

Beyond the immediate economic impact on receiving countries, these revelations raise serious questions about the sustainability of China’s auto industry. If so many new vehicles are circulating that they must be registered as used cars and exported almost immediately, it suggests the industry is failing to balance production with real demand. Eventually, this imbalance will have to correct—and when it does, workers are likely to bear the brunt.

Volkswagen to Upgrade ID.4 Interior Next Year

Volkswagen is reportedly set to improve the interior of the ID.4 crossover next year.

The ID.4 is spacious, comfortable, practical, and reasonably priced, but its interior technology has been widely criticized. It relies too heavily on capacitive touch controls, lacks physical buttons and knobs, and can be frustrating to use. That should soon change. According to Autocar, Volkswagen plans a major facelift for the ID.4 in 2026, with significant interior upgrades.

Volkswagen’s head of technical development, Kai Grünitz, confirmed that the updated ID.3 and ID.4 will feature an all-new interior design, including a new dashboard and user interface. One major change is the return of physical buttons and knobs, replacing touchscreen-based functions and the controversial slider controls—an approach first previewed on the ID.2all concept.

“We’re going back to round knobs for volume control,” an insider said. “If something works and has worked for years, there’s no reason to replace it.”

If it isn’t broken, don’t fix it. While Volkswagen has been gradually reintroducing physical controls across its lineup, a proper volume knob in the ID.4 will be a welcome improvement. Traditional window switches are also high on many wish lists and may return as well. In addition to the revamped interior, the refreshed ID.4 will adopt styling closer to the ID.2all concept, giving it a more conventional look. As Autocar reported, the updated ID.3 is expected in Q2 next year, with the ID.4 following in late 2026.

VinFast Slashes VF 8 Prices—but It Still Looks Uncompetitive

When was the last time you thought about VinFast? Even I hadn’t for months—and I make a living thinking about cars. Despite a disastrous North American launch for the VF 8 crossover, including malfunctioning press cars and even crashes involving journalists, the company is still hanging on in the region. A press release today revealed:

The VF 8 is now available at highly competitive MSRPs, starting at $39,900 for the Eco trim and $44,900 for the Plus. Lease payments start as low as $269 per month, with attractive 0% financing also available.

The Eco trim now costs $39,990—more than $6,000 less than last week—but it still struggles to compete. If you’re paying cash, why choose a $39,900 VF 8 Eco over a Ford Mustang Mach-E Select at a similar price, or a $34,995 Chevrolet Equinox EV? Both offer longer range, access to Tesla Superchargers in emergencies, better interior materials, superior user tech, and far stronger dealer service networks.

Even leasing and financing comparisons are tricky. Zero-interest loans sound appealing, but Chevrolet is offering 0% financing on remaining 2024 Equinox EVs, Volkswagen offers 72 months at 0% for the ID.4, and Ford offers 0.9% for 36 months on the Mach-E—putting VinFast’s deal into perspective.

I admire VinFast for sticking it out in North America despite tariffs and a tiny market share. Vietnamese EVs certainly make the roads more interesting. But the brand needs either far more competitive products than the VF 8—or significantly lower prices.

The Explorer Heads Back into the Wild

Back in 2022, Ford introduced the Explorer Timberline, a ruggedized version of its mainstream three-row crossover. It looked like an Explorer wrapped in an OtterBox—but it only lasted three years. Likely reasons include shifting brand strategy and the redesigned 2025 Explorer lineup, which made Timberline feel outdated.

Still, demand remains for vehicles that signal weekend-camping credibility, so the Explorer will soon receive a Tremor variant, joining the Maverick, F-150, and Expedition. The Explorer Tremor largely mirrors the standard model but adds 18-inch all-terrain tires, auxiliary lighting, exposed tow hooks, skid plates, and enhanced suspension. New springs lift it 1 inch higher than the standard Explorer (versus Timberline’s 0.8 inches), complemented by revised anti-roll bars.

Ford also equips the Tremor with a Torsen limited-slip rear differential—an interesting choice. Torsen differentials use helical gears, smoothly distributing torque without clutches and requiring little maintenance. However, as torque-biasing (not locking) differentials, they need load on both axles to function properly. If a wheel lifts off the ground, traction control must intervene. Clearly, this setup is designed for roads and light off-roading—which makes sense, given how often these Explorers will likely be spotted in Starbucks drive-throughs.

The 2026 Explorer Tremor offers two engines: a 300-hp 2.3-liter turbo four-cylinder or a 400-hp 3.0-liter turbo V6. Trims range from practical to luxurious, including massaging seats. Bold yellow-orange accents appear throughout—on the grille, tow hooks, wheels, badges, and stitched Tremor logos inside. One thing’s certain: you won’t mistake it for a police car.