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For the upcoming model year, Volvo has given the XC60 a significant refresh, elevating its user experience, design, and comfort while introducing a faster, more responsive infotainment system. These updates aim to solidify the XC60’s status as Volvo’s best-selling model, which has achieved over 1.5 million sales worldwide since its debut in 2017. In 2024, the SUV even set a new sales record, reaffirming its strong market presence.

Next-Generation Infotainment and User Experience

The refreshed XC60 now features Volvo’s latest user experience, designed for safer and more intuitive interactions. A key highlight is the new 11.2-inch free-standing central touchscreen, offering a 21% increase in pixel density for sharper visuals. This updated system integrates multiple Google services* and allows for over-the-air updates**, extending its functionality beyond factory settings.

Powering this upgraded system is the next-generation Snapdragon Cockpit Platform from Qualcomm Technologies*, which makes the infotainment system more than twice as fast as before, with ten times faster graphics rendering. The result is a more responsive and seamless interface that enhances both convenience and safety.

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After years of decline, Volkswagen has acknowledged its struggles and is implementing a strategy to reclaim its competitive edge. Facing increasing pressure from Chinese automakers and the accelerating shift to electrification, the German automaker has introduced a turnaround plan known as Triple A—Accelerate, Attack, and Achieve. Central to this strategy is the launch of nine new models by 2027, beginning with two smaller, more affordable electric vehicles under the ID. family.

Volkswagen has confirmed that the ID.2, expected in 2026, and the ID.1, set to arrive in 2027, will be key components of its electrification efforts. The ID.1 is slated for an official unveiling in early March, featuring an all-electric powertrain with a starting price of approximately €20,000 (RM88,965). Employees at Volkswagen’s Wolfsburg headquarters will be the first to see the vehicle before its public debut.

Volkswagen Passenger Cars CEO Thomas Schäfer described the new model as a crucial achievement, stating that an affordable, high-quality, and profitable electric Volkswagen designed in Europe for the European market represents the pinnacle of automotive engineering. Wolfsburg will remain the core of Volkswagen’s electrification drive, though changes in production strategy are underway. To accommodate the transition, the company is relocating Golf production to Mexico, making space for electric vehicle manufacturing.

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The merger discussions between Honda Motor Co. and Nissan Motor Co. have officially collapsed, with tensions running high over the conditions proposed by Honda. A senior Nissan official expressed strong discontent over what he described as “rude” demands made by Honda during the negotiations.

At the core of the disagreement was Honda’s insistence that Nissan become its subsidiary, a condition that ultimately led to the breakdown of the talks. Honda also pushed Nissan to restructure its business and abandon its proprietary hybrid vehicle (HV) system, e-Power, in favour of Honda’s own HV technology. These proposals were perceived as an affront to Nissan’s reputation, particularly given its historical branding as the “Nissan of technology.”

From Honda’s perspective, integrating Nissan’s sales channels with its hybrid system would have improved economies of scale, potentially lowering procurement costs for both companies. However, Nissan, once a leader in electric vehicle (EV) production, has struggled to keep pace with Toyota and Honda in the hybrid segment. A senior Honda official asserted that Honda had a clear advantage over Nissan in HV technology, further fueling tensions.

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Audi is charting a course further upmarket, positioning itself as an even more prestigious brand with upscale replacements for its flagship models, including the A8 limousine and the Q7 and Q8 SUVs. The German automaker is laying the groundwork for a more luxurious and exclusive brand perception, pushing into higher price segments while maintaining its premium identity.

The Grandsphere concept, unveiled in 2021, hinted at a potential future iteration of the A8 that would elevate it into true luxury territory. Similarly, the 2022 Urbansphere concept suggested that Audi may introduce an even larger, more opulent SUV. Now, the Volkswagen-owned brand is refining its strategy to further enhance its desirability and status.

Audi Grandsphere Concept

Audi UK’s new managing director, Jose Miguel Aparicio, emphasised this shift in an interview with Auto Express, stating that the company prioritises prestige and exclusivity over sheer volume. “We are making a step upwards in terms of premiums, increasing the prestige, desirability, and perception of the brand, and more interested in the quality of business than the quantity,” he said.

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The BMW Group has unveiled its latest high-performance test vehicle, the BMW Vision Driving Experience, a prototype designed to push the limits of driving pleasure. While not intended for mass production, this Vision Vehicle serves as a rolling test platform for the advanced drivetrain and driving dynamics technology developed for BMW’s next-generation electric models under the Neue Klasse banner.

At the heart of this prototype is the “Heart of Joy,” an advanced control system engineered to redefine electric driving. BMW recently put the system through a rigorous endurance test at the BMW Performance Driving Center in Spartanburg, USA, where it demonstrated its full potential. As part of an exclusive preview presentation, the company provided insights into how the Heart of Joy will shape the electric driving experience in the Neue Klasse models, set to launch later this year from BMW’s Plant Debrecen in Hungary.

The Heart of Joy introduces a new dimension to BMW’s core philosophy of Sheer Driving Pleasure, complementing the Neue Klasse’s focus on electrification, digitalization, and sustainability. The small black control unit at the core of this system is set for series production, even though the Vision Vehicle itself will not enter the market.

Enhancing Driving Pleasure and Efficiency

BMW’s Head of Development, Frank Weber, highlighted the transformative impact of the Heart of Joy, stating that it elevates driving pleasure to unprecedented levels while also enhancing efficiency. The system significantly improves regenerative braking, allowing the vehicle to rely almost entirely on energy recuperation, reducing the need for conventional braking. This efficiency boost aligns with BMW’s Efficient Dynamics strategy, maximizing range and sustainability.

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Toyota Motor Corporation has introduced its latest innovation in hydrogen technology with the unveiling of its third-generation fuel cell system (3rd Gen FC System). The new system represents a major step forward in Toyota’s vision for a hydrogen-powered future, with advancements in durability, efficiency, and cost reduction.

Designed specifically to meet the needs of the commercial sector, the 3rd Gen FC System offers durability on par with conventional diesel engines while delivering improved performance and efficiency. Toyota has significantly enhanced fuel efficiency and reduced costs compared to the previous generation, making the new system more viable for widespread adoption. The company plans to roll out the system primarily in Japan, Europe, North America, and China, with commercial availability expected after 2026.

Toyota has scheduled the official unveiling of the 3rd Gen FC System for February 19, 2025, at the H2 & FC EXPO in Tokyo, Japan. The event will mark the first public display of the new technology, highlighting its potential applications in various industries.

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BMW is preparing to launch the latest version of its best-selling Sports Activity Vehicle (SAV), the BMW X3, in China. The updated model, developed specifically for the Chinese market, is expected to arrive at dealerships within days and will officially go on sale later in February 2025.

The new BMW X3 will be available with two four-cylinder petrol engine options. The entry-level BMW X3 xDrive 25L Luxury delivers 190hp and 310Nm of torque, enabling acceleration from 0 to 100km/h in 8.7 seconds and a top speed of 214km/h. A more powerful alternative, the BMW X3 xDrive 30L, is available in two equipment variants—Pioneering MSP and Exclusive MSP. This version generates 258hp with 400Nm of torque, achieving 0 to 100km/h in just 6.5 seconds and a top speed of 239km/h.

China represents a crucial market for BMW, with the outgoing X3 model emerging as the brand’s top global seller in 2023. In China alone, 156,000 units were delivered, accounting for nearly 40% of all BMW X model sales in the country. To cater to the growing demand for premium midsize SAVs, BMW has introduced a China-specific extended-wheelbase version of the X3, ensuring enhanced interior space and passenger comfort while maintaining the brand’s signature 50:50 weight distribution for balanced handling.

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BYD has unveiled its latest advanced driver assistance system (ADAS), known as “God’s Eye,” in a move that aims to integrate high-end intelligent driving technology across its vehicle lineup, including budget-friendly models like the BYD Seagull. The system, available in three variants with up to three LiDAR sensors, represents a significant leap forward for the company, which had previously faced criticism for lagging behind competitors in autonomous driving technology.

During the launch ceremony, BYD highlighted its vast engineering resources and data-driven approach to ADAS development. The company, which maintains the largest car cloud database in China, employs 110,000 engineers, with 5,000 dedicated to intelligent driving research and development. In 2024, the company’s ADAS training mileage reached 72 million kilometres per day, a scale that has contributed to the evolution of its latest driving assistance technology.

BYD’s new ADAS system is divided into three distinct levels. The entry-level variant, called “God’s Eye C,” is designed for standard BYD models and operates using a three-camera cluster positioned behind the windshield. This system, powered by the DiPilot 100 processor with a peak computing capacity of 100 TOPS (Tera Operations Per Second), incorporates 12 cameras, five millimeter-wave radars, and 12 ultrasonic sensors.

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Tesla has aggressively pursued legal action against critics in China, targeting car owners, bloggers, and media outlets that question the safety and quality of its vehicles. The company has won nearly all its lawsuits, benefiting from strong government backing and China’s pro-business legal environment. Tesla’s legal victories highlight the growing influence of foreign firms in China’s judicial system, where consumers and critics face significant challenges in holding corporations accountable.

Zhang Yazhou’s Case: A Battle Against Tesla

One of Tesla’s most widely publicised legal disputes in China involves Zhang Yazhou, a car owner who became a vocal critic of the company. The case dates back to February 2021, when Zhang’s father was driving their Tesla Model 3 in Henan province and allegedly experienced brake failure, leading to a crash. While local traffic police attributed the incident to speeding and driver error, Zhang insisted that the car’s brakes had malfunctioned. She demanded full access to the crash data, but Tesla refused to provide it in its entirety, further fueling her suspicions.

Zhang Yazhou sits on her Model 3 with a banner that reads “Tesla Brake Failure”

Zhang’s Protest & Tesla’s Response

In April 2021, frustrated by Tesla’s refusal to disclose complete data, Zhang staged a high-profile protest at the Shanghai Auto Show. She climbed onto the roof of a Tesla car, wearing a T-shirt that read “Tesla brake failure”, and shouted slogans, drawing widespread media attention. The protest went viral on Chinese social media, sparking heated debates about Tesla’s reliability and corporate ethics.

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Toyota has reclaimed its position as the world’s most valuable automotive brand, overtaking both Mercedes-Benz and Tesla, according to the latest Automotive Industry 2025 report by leading brand valuation consultancy Brand Finance. The Japanese automaker’s brand value surged by 23% to USD 64.7 billion, driven by strong sales and a strategic focus on hybrid vehicles.

As the industry grapples with a slower-than-expected transition to fully electric vehicles (EVs), Toyota’s emphasis on hybrids has resonated with consumers seeking fuel efficiency without the infrastructure challenges of EV adoption. The company’s ability to optimize production and maintain profitability despite rising material costs has reinforced its leadership. AI-driven supply chain management and a diverse product mix have also contributed to Toyota’s sustained growth.

Tesla, which previously held a dominant position in brand value rankings, experienced a significant decline of 26%, bringing its valuation down to USD 43.0 billion and placing it in third position. The decline has been attributed to missed revenue expectations, intensified competition in the EV sector, and aggressive price cuts in key markets, particularly China. Additionally, shifting political dynamics in the United States, including the potential rollback of EV subsidies under a Trump administration, have added to Tesla’s challenges.

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