Car news today: Luxury car tax facing the chopping block, BYD beats Tesla for best selling EV, and more – 07 May 2025
Lukas Foyle
Contributor
Every important car news story breaking today, one convenient read
Thanks for joining us this Wednesday, May 07th 2025. Notably in car news today: Labor could toss luxury car tax, BYD Sealion 7 more popular than Tesla in April.
The recently reelected Australian Labor Party (ALP) is reportedly considering scrapping Luxury Car Tax (LCT), according to a report published by The Australian. The move helps firm up free trade with Europe in the face of the impact of US trade tariffs imposed on the EU.
Introduced in 2001, the LCT imposes a 33 percent tax to vehicles valued above $80,567. Meanwhile, fuel efficient vehicles (those with a claimed fuel consumption below 7.0L/100km) have a higher $91,387 threshold.
An economic domino effect has observedly begun from US tariffs. Australia hopes to use the abolishment of LCT to establish free trade with Europe and other continents.
Claims of abolishing LCT follow from requests of the European Union to help its increasingly struggling automotive industry following recent US tariffs as well as steadily increasing competition from Chinese carmakers.
BYD Sealion 7 triumphs over Tesla in EV battle of attrition
The BYD Sealion 7has claimed the title of April 2025’s best-selling EV, pulling ahead of several EV brands including reigning Australian EV sales champion Tesla.
BYD’s Sealion 7 midsize electric SUV shifted 743 vehicles in April, impressive for its third month on sale. Its closest rival, the Tesla Model Y, sold just 280 units, with the Model 3trailing close behind at 220 registrations.
Tesla has informed Chasing Cars that they believe the May 2025 sales rollout of the all-new 2025 Model Y will stabilise the brand’s uncharacteristically low sales figures.
Several electric vehicles outsold either model of Tesla in April, including theMG4 (363), Kia EV5 (342), Kia EV3 (336), and Geely EX5 (324). The Tesla Model Y remains the most popular EV in Australia year to date, with a total of 3394 deliveries.
Jaecoo J8 price and specs revealed ahead of June launch
Luxury Chery subdivision Jaecoo has announced pricing for its new J8 medium/large size SUV ahead of its official June 2025 launch date.
The Jaecoo J8 will initially be sold in two trim levels, starting at $49,990 drive-away for the J8 Track front-wheel drive and $54,990 drive-away for the J8 Ridge all-wheel drive. Both vehicles will be powered by a 183kW/385Nm two-litre turbocharged four cylinder.
The Jaecoo J8 rivals similar unique monocoque softroaders including the $44,190 (MSRP) Subaru Outback, $50,240 (MSRP) Mazda CX-60 and $53,000 (MSRP) Hyundai Santa Fe.
Despite being a key selling point in overseas markets, the Australian model Jaecoo J8 will not be available with a six- or seven-seat configuration. A Chery spokesperson divulged to Chasing Cars the importer was “disappointed” to miss out.
Mercedes-Benz C350e marks the return of Benz PHEVs
Mercedes-Benz Australia has announced it will be bringing the new C350e plug-in hybrid to Australia – the first time the three-pointed star has offered a PHEV since the discontinuing of the A250e sedan in May 2022.
The Mercedes-Benz C350e is available to order from today, with a starting price of $98,200 (list). It features a 25.4kWh battery, two-litre turbocharged four cylinder, and nine-speed automatic transmission with P2 mounted electric motor. Combined output is quoted to be 230kW and 550Nm.
Mercedes-Benz claims the C350e is capable of up to 100km (NEDC) electric-only driving range. Standard equipped 11kW AC charging accomplishes a full charge in a claimed 2 hours, with $1500 optional rapid DC 55kW charging accomplishing a 0-80 percent charge in 20 minutes.
The C350e rivals similar mid-size European executive sedans, primarily the $88,990 (list) Volvo S60 T8 PHEV and upcoming Audi A5 PHEV.
The next issue of Car News Today will be published on Thursday 08th May at 4.30pm Sydney time.
