In less than a decade, China went from a follower in the auto industry to the owner of the world's largest EV market. In 2025, China's new energy vehicles (NEVs) make up more than 6 of every 10 sold worldwide — led by BYD, which passed Tesla to take the top spot. It builds its own batteries, its own chips, its own cars, driving costs so low that rivals can barely keep up. This lesson tells how China pulled it off, why it matters to the whole world, and why that success came bundled with the most brutal "price war" in automotive history.
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US auto industry groups urge Trump to block Chinese-made vehicles
Several US auto industry groups have sent a letter to President Trump urging him to block Chinese-made automobiles from entering the US market, ahead of a planned US-China summit next week. Among the groups that signed the letter are the Alliance for Automotive Innovation, which includes passenger car manufacturers from Japan, the US and Europe, and the National Automobile Dealers Association. Chinese-made passenger cars are effectively shut out of the US market by high tariffs and other measures, and the letter, dated the 17th, calls for the current policy to be maintained. It argues that easing entry restrictions would "undermine fair competition."
Volkswagen Cuts 2026 Profit Outlook on China Slump and Porsche Writedown
Volkswagen has dramatically cut its 2026 profit outlook, now expecting an operating margin of no more than 1% this year, down from its previous forecast of at least 4%. The German carmaker expects around €10 billion, or $11.5 billion, in charges this year, including restructuring costs tied to workforce reductions and writedowns on Chinese assets; that total includes a €6-billion writedown related to Porsche, reflecting revised long-term expectations for the sports-car maker. Excluding the exceptional charges, Volkswagen said its operating margin would be around 4%. Volkswagen shares fell more than 7% following the announcement, dragging other automakers lower. Chief Financial Officer Arno Antlitz said the Chinese market has contracted by around 20%, with no stabilization currently in sight, while Chinese automakers take domestic share and expand into Europe with competitively priced electric vehicles. Volkswagen also said growing EV sales are weighing on profitability at its Volkswagen passenger-car and Audi businesses, and it recently reached an agreement with labor representatives that could increase planned job cuts to 100,000 globally.
Unusually Large Business Delegation to Join Xi's US Visit, with BYD and Xiaomi Among Candidates
The US and Chinese governments are finalizing the selection of top Chinese business figures to accompany President Xi Jinping on his visit to the United States, according to three people familiar with the matter. According to the sources, candidates include Chinese electric vehicle giant BYD, smartphone maker Xiaomi, which has also expanded into EVs, battery giants CATL and Gotion High-Tech, home appliance maker Hisense Group, auto parts supplier Wanxiang Group, state-owned Bank of China, and agricultural conglomerate COFCO. Accompanying a large business delegation to the United States would be an unusual move. According to the people, the finalization of the delegation's members will wait for talks this weekend between US Treasury Secretary Bessent and Chinese Vice Premier He Lifeng, with formal invitations to be sent to each company within the next few days, and the US State Department is expected to approve visas for the delegation. CATL and BYD were added to the US Department of Defense's corporate list in January 2025 and June 2026, respectively, over alleged ties to the Chinese military. China's Foreign Ministry, responding to a Reuters question, said it had no information.
Hyundai CEO Warns Chinese Cars Could Flood U.S. Without Tariffs
Hyundai CEO Jose Munoz warned that Chinese vehicles could flood the U.S. market, as they did in Europe, unless Washington maintains tariffs and other trade safeguards, Reuters reported. Munoz noted that Chinese vehicles are 30%-40% cheaper than rival models in some markets including Italy, Spain and France, even with EU trade barriers such as tariffs and minimum pricing commitments in place. He said the UK, which left the EU in 2020 and has no similar tariffs on Chinese cars, now counts all of its top car sellers as Chinese, and warned similar things could happen in the U.S. at different levels unless certain conditions are met. The U.S. has effectively blocked Chinese electric vehicle imports with tariffs of about 100%, though President Donald Trump recently said he would be open to Chinese automakers manufacturing in the U.S. as long as they employ Americans. Munoz's remarks echoed Ford CEO Jim Farley, who told staff in July that the company was bracing for Chinese automakers to enter the U.S. within the next 5-10 years.
KKP Research raises Thailand's 2026 GDP forecast to 2.5%, flags K-shaped recovery
KKP Research, part of the Kiatnakin Phatra Financial Group, has raised its forecast for Thailand's economic growth in 2026 to 2.5% from 2.1%, and for 2027 to 2.7% from 2.2%, driven by the tourism sector, private investment, and exports linked to the global artificial intelligence investment cycle, or AI capex cycle. It noted, however, that the Thai economy is now fully entering a K-shaped recovery, in which some industries are soaring while the grassroots economy and traditional industries remain sluggish. The main driver comes from the electronics supply chain, particularly the data storage industry and components related to AI infrastructure, in contrast to the country's four core industries, which face continued pressure: the automotive sector, hit by the transition to electric vehicles; petrochemicals, facing regional oversupply; and SMEs and electrical appliances, which must contend with competition from imported goods. KKP Research noted that although the IMF ranks Thailand among the world's four largest exporters of AI-related goods, the country remains constrained by its position at the assembly and contract-manufacturing stage and its heavy reliance on imported raw materials, meaning the domestic economic benefit is smaller than the rise in export value. It proposed that the government link BOI incentives to domestic value creation and set conditions on clean energy and closed-loop water systems. On monetary policy, KKP Research lowered its 2026 inflation forecast to 1.8% and expects the Monetary Policy Committee of the Bank of Thailand to hold the policy rate through the end of 2027, since inflationary pressure stems from cost factors that are temporary.
Three German States Seek Government and EU Support Amid 'Historic Turmoil' in Auto Industry
The premiers of Germany's Baden-Württemberg, Bavaria, and Lower Saxony states on the 17th called on government and European Union leaders to accelerate support measures, saying the auto industry faces "historic turmoil." The three states issued an eight-page joint statement, warning that without improvements to the domestic regulatory environment and trade protection measures, "the automotive industry could suffer irreversible damage." The statement said the EU's anti-subsidy investigation should be extended to plug-in hybrid vehicles, and that an industrial acceleration law to support industrial investment, decarbonization, and regional manufacturing must be advanced urgently and steadily. It also called for measures to lower energy costs and non-wage labor costs, boost infrastructure investment, and curb bureaucracy, and said EU carbon emission regulations should be relaxed, arguing that relief measures are needed for synthetic fuels, hybrid vehicles, and high-efficiency internal combustion engines as transition-period technologies.
Chinese Automakers Seek European Production Sites as EU Weighs Local Content Rules, BYD Adviser Says
Chinese automakers are scouting locations for production bases in Europe after the EU signaled it will introduce local content requirements. Alfredo Altavilla, BYD's adviser for Europe, told Reuters at the opening ceremony of a Denza premium brand dealership in Turin, Italy, that companies are focusing their efforts on inspecting existing auto assembly plants, which can start production faster than building factories from scratch. The European Commission is drafting a "Made in Europe" policy that favors industrial parts and products made within the bloc, and is expected to set minimum local content thresholds for EVs sold in the region, possibly as early as next year. BYD aims to acquire existing plants, take full ownership and then retrofit them; its first European passenger car plant in Hungary is in the early stages of production, and the company is expected to select a second European site within the year. Altavilla said that to grow while meeting EU regulations, BYD will eventually need "three assembly plants and one battery plant" in Europe, adding that Spain and France offer "clearly simpler situations" and are the "most feasible" options. Italy is a "second-best" choice because Stellantis is reluctant to sell plants, he said. Chinese manufacturers have already begun partnerships to share production lines at underutilized European plants: Leapmotor is teaming up with Stellantis in Spain, Dongfeng Motor with Stellantis in France, Geely with Ford Motor in Spain, and Chery has bought a plant in Spain previously owned by Nissan.
Leading Chinese internet company launches AI-native in-car assistant, first model to begin pre-sales soon
A leading Chinese internet company has officially launched an AI-native in-car assistant, jointly introduced by its AI assistant brand and cloud services division. Positioned as an intelligent cockpit AI companion, it can understand complex vehicle-related needs, coordinate functions across the entire car, naturally participate in multi-person conversations, remember user habits, and connect with mobile apps to extend service scenarios from phone to vehicle. The assistant has already partnered with a major Chinese automotive group, and the first model equipped with it will soon begin pre-sales, with more models to follow within the year. Mai Junjie of China Southern Fund, guided by industry development trends and core driving factors, focuses on technological innovation, policy direction, and demand upgrades to identify new technology growth areas and industries with medium-term supply-demand tensions. The China Southern Emerging Leaders Hybrid Fund he manages focuses on the AI inflation theme.
KGEN welcomes RWI as 7.68% shareholder, pushes ahead with EV supply chain, targets 40,000 vehicles produced by year-end
King Gen Public Company Limited, or KGEN, disclosed that Rayong Wire Industries Public Company Limited, or RWI, has taken a stake in KGEN through a private placement subscription of newly issued ordinary shares worth no more than 250 million baht, at a price of no more than 1.35 baht per share, representing approximately 7.68% of the shares after the capital increase, with total investment of no more than 252 million baht. RWI will also receive the right to subscribe to KGEN-W3 warrants in proportion to its existing shareholding, worth no more than 2 million baht. The maximum transaction size of 24.67% qualifies as a Type 3 transaction, which requires approval from a shareholders' meeting by a vote of no less than three-quarters. An extraordinary shareholders' meeting, the first of 2026, has been scheduled for Thursday, October 22, 2026. Khanit Sivachiraprapha, Chairman of the Advisory Board of KGEN, said the partnership will strengthen the domestic supply chain for automotive parts production, in line with the policy of increasing the use of locally made parts in electric vehicle production under cooperation with the CHERY brand. RWI specialises in the production of cold-drawn steel, which is used to make automotive parts. KGEN has so far produced 20,000 vehicles, with EV production capacity of approximately 5,000 vehicles per month, and expects capacity to rise by another 15,000 to 20,000 vehicles in the final three months of the year, bringing total production for the year to around 40,000 vehicles. Year-end bookings are expected to accelerate on the back of the Motor Expo in December, where two to three new electric vehicle models will be unveiled. The company has also signed an agreement to support a transport fleet for J&T Express, including the use of electric pickup trucks for deliveries of no more than 400 kilometres.
XPENG Launches G9L AI Flagship SUV in China, Global Debut Set for Oct 12 in Paris
XPENG held the China launch event for its next-gen AI flagship SUV, the G9L, in Beijing, and said the model will be available in 64 global markets with a global launch event on October 12 at the Paris Motor Show. The G9L comes in both BEV and REEV versions, measures 5,120 mm long with a 3,100 mm wheelbase and a 0.605 wheelbase-to-length ratio, and runs on XPENG's VLA 2.0 model and the same Turing AI chip used in its IRON humanoid robot. The vehicle meets the design standards of four major five-star safety ratings worldwide, having completed 192 crash tests across the Euro NCAP, ANCAP, C-NCAP and CIASI protocols totaling more than 110 individual test items, plus global road testing across 26 countries and regions with cumulative mileage surpassing 6.74 million kilometers. The G9L will begin production in both Guangzhou, China, and Graz, Austria, becoming the fourth XPENG model to roll off the line at Magna's plant in Graz after the G6, G9 and P7+, meaning four localized models within a single year. At the event, Chairman and CEO He Xiaopeng also said the world's first automated production line for advanced general-purpose humanoid robots was officially commissioned, using robots to produce robots, and confirmed XPENG's Paris Motor Show booth is in Hall 6.
Germany Urges EU Action Against China to Defend Carmakers
German Finance Minister Lars Klingbeil called on the European Union on Thursday to step up action against what he called China's unfair trade practices in order to protect Germany's struggling carmakers. Speaking during a visit to Volkswagen's headquarters in Wolfsburg, Klingbeil said Berlin would press Brussels for concrete measures in areas including plug-in hybrids and local content requirements, adding that Germany cannot be naive in its dealings with China and needs a clear signal at a European level. Volkswagen staff representative and supervisory board member Daniela Cavallo backed demands for higher tariffs on Chinese-made hybrids, saying the company faces enormously tough, difficult and unfair competition with China, while Olaf Lies, leader of the German state of Lower Saxony, a major Volkswagen shareholder, said Germany still needs China as a partner but must have the same rules as those applied there. Since 2024 the EU has levied higher tariffs on Chinese-made electric cars, alleging they benefit from unfair state subsidies, and calls have grown for those levies to be extended to hybrid vehicles. Volkswagen recently announced plans to axe a further 50,000 positions globally, taking total projected job cuts to 100,000 in the coming years, or around 15 percent of its workforce, and the IG Metall union has organised nationwide protests for Monday, expecting around 100,000 workers to participate across the country at major manufacturers and suppliers.
Xi Jinping Pushes China to Upgrade Advanced Manufacturing and Control Key Industrial Chains
Chinese President Xi Jinping has called on the country to accelerate the development of a larger and stronger advanced manufacturing sector, while boosting its ability to control key industrial chains, in order to strengthen self-reliance in manufacturing and technology. The directive was conveyed during a national conference on advanced manufacturing held in Beijing on Wednesday and Thursday. The Chinese leader said China must speed up the building of a modern industrial system with advanced manufacturing at its core, and further strengthen the foundations of the real economy. Premier Li Qiang said at the event that Xi's directive serves as the main guideline for developing advanced manufacturing, and called for advancing an initiative to integrate AI with manufacturing, while accelerating guidance and support for businesses transitioning to digital and intelligent systems. The Chinese leaders' remarks come amid concerns among many parties, especially in Europe, over the rise in China's exports of electric vehicles and other green technology products, which has sparked worries of a new wave of competitive pressure dubbed China Shock 2.0. Meanwhile, the Financial Times reported, citing sources, that the EU wants China to limit the share of hybrid vehicles exported from China to the European market to around 15 percent. One EU official said that if China does not restrict exports, the EU will take measures of its own to prevent Europe's industrial manufacturing base from shrinking.
Energy Policy Office Expects Energy Use to Grow 1.4% in 2026 After 0.9% First-Half Rise
The Energy Policy and Planning Office, or EPPO, reported that primary commercial energy consumption in the first six months of 2026 was approximately 2,062 thousand barrels of oil equivalent per day, up 0.9% from the same period a year earlier, in line with Thai economic growth of 2.4%. EPPO Director Wattanapong Kurovat said electricity use rose 6.0%, with total electricity consumption of 109,846 gigawatt-hours, and natural gas use increased 8.5% to 4,937 million cubic feet per day. Refined oil consumption fell 0.8% to 142.7 million liters per day, partly a result of higher prices amid uncertainty from the conflict in the Middle East. Coal and lignite use dropped 16.5% to 5,899 thousand tons of oil equivalent, with lignite down 52.5% because the Mae Moh power plant halted some of its generating units, while carbon dioxide emissions from energy use fell 0.4% to 121.0 million tons of CO2. In the land transport sector, electricity use at charging stations rose 87.1%, consistent with cumulative registrations of BEV electric vehicles as of June 2026 reaching 491,496 units, up 66% from 296,813 units in June 2025. EPPO expects energy demand for all of 2026 to rise 1.4%, but says the Middle East conflict, uncertainty over US trade measures, and weather factors still need to be monitored. Dubai crude oil stood at 126.70 US dollars per barrel on September 14, 2026, and the average Asian LNG price over the first eight months of the year was 16.70 US dollars per million BTU, higher than the 2025 average of 12.16 US dollars per million BTU.
EU asks China to cap hybrid vehicle exports at around 15% to avoid trade war
The European Union has called on China to voluntarily limit its exports of hybrid vehicles to the European market, seeking to cap the share at around 15% to prevent the dispute between the two sides from escalating into a trade war. The Financial Times reported, citing sources, on Nov 17 that an EU official said that if China does not restrict its exports, the EU will take measures itself to prevent Europe's industrial manufacturing base from shrinking. In addition, the EU has asked China to limit exports of other goods such as chemicals, and has called on China to increase imports of goods from Europe. Ursula von der Leyen, President of the European Commission, told the European Parliament on Wednesday, Sept 16 that the EU will take every measure available to address its trade deficit with China, which she views as unsustainable, stating that the goods trade deficit between the EU and China stood at 360.6 billion euros, or 413.4 billion dollars, in 2025 and rose another 9% in the first six months of this year. EU Trade Commissioner Maros Sefcovic, who is responsible for negotiations with China, said he wants to see concrete results by October and expects to visit China early next month. The EU says the rise in Chinese exports, including chemicals, batteries and cars, is driven by overcapacity, while the Chinese government rejects such criticism, saying Europe's concerns about economic imbalances and overcapacity are trade protectionist measures aimed at containing China.
Volvo to launch 13 new models by 2030 in bid to improve profitability
Swedish automaker Volvo Cars said on the 17th that it plans to launch 13 new models by 2030. It will roll out six models for the Chinese market and seven for the European and American markets, expanding its lineup in an effort to revive sales. Through this, it aims to raise its EBIT margin from 3.5% in 2025 to above 8%, a long-standing target. The models for Europe and the United States will use Volvo's SPA2 and SPA3 vehicle platforms, while the models for China will be developed jointly with Geely Automobile, which is part of the same group. Chief Executive Officer Håkan Samuelsson said in a statement that this new model launch strategy is based on four distinctive strengths: regionally tailored product development, a leading position in electrification, synergies with Geely, and comprehensive customer services that go beyond the car itself.
European BEV sales rise 54% year-on-year in August, accounting for 30% of new cars
New registrations of battery electric vehicles in Europe rose 54.2% year-on-year in August, accounting for roughly one in three new cars sold and far outpacing forecasts for 2026. According to data from E-Mobility Europe, New Automotive and Fierce Automotive, BEV registrations across 16 major European markets rose to 202,833 units, giving fully electric vehicles a market share of 30.5%. BEV registrations across Europe as a whole have exceeded 1.67 million units since the start of the year, up 33.1% from the same period a year earlier. T&E had forecast a BEV share of 23% in the EU this year, while Rho Motion expected around 21% for Europe as a whole, but BEV registrations in the 16 markets have risen 33.1% year-to-date, exceeding forecasts for the combined plug-in market of BEVs and plug-in hybrid vehicles. By country, France's BEV market share rose to 38.3% in August and Germany's to 32.5%, with fully electric registrations reaching 36,159 units in France and 68,980 units in Germany. Among Europe's most electrified markets, Norway led with a BEV share of 98.7%, followed by Denmark at 85.9%, Finland at 52.3%, the Netherlands at 48.9%, Belgium at 46.2% and Portugal at 36.1%.
Government Weighs 30% Excise Tax on Fully Imported EVs, Decision Expected by September
The government is in discussions with the automotive industry to finalise the excise tax rate for electric vehicles, with a decision expected within September. A rate of around 30% may be levied on fully imported EVs, aimed at encouraging manufacturers to set up production bases in Thailand and expand the domestic supply chain. These details are part of a plan that the National Electric Vehicle Policy Committee, or EV Board, agreed on in principle last week, which proposes a three-tier excise tax on EVs: fully imported cars face the highest rate, cars produced in Thailand face the lowest rate, and cars assembled domestically but still relying on some imported parts face the middle rate. Dao Securities views this as positive for the Thai automotive industry and the automotive sector over the medium to long term, given the opportunity to expand the share of auto parts sales to EV makers that set up production bases in Thailand. Currently, the revenue share from EV parts remains low, with AH at around 5%, while SAT still has a very small share. For the automotive sector, the brokerage maintains an Underweight investment weighting, while for SAT it recommends a "hold" rating with a target price of 16.50 baht.
AH says EV tax boost supports local parts, eyes new orders in H2 2026
Mr. Yeap Su Chuan, Executive Chairman of Aapico Hitech Public Company Limited, or AH, said the government's increase in import taxes on electric vehicles is aimed at encouraging operators to set up production bases in Thailand, which will benefit domestic auto parts manufacturers. AH is ready to produce parts for EV cars immediately, because many key components such as body structures, wheels and seats remain similar to those of conventional combustion-engine cars. However, receiving orders from new car models takes at least 12 months before parts delivery can begin. For the outlook in the second half of 2026, the business in Thailand has received new product orders worth a total of about 100 million baht, similar to the business in Portugal, which has begun producing parts under new orders. Meanwhile, the car dealership business in Malaysia remains a key growth driver, supported by strong Proton sales from new EV models. Yuanta Securities (Thailand) Company Limited said the Electric Vehicle Policy Committee approved in principle a restructuring of the excise tax on electric vehicles, divided into three tiers based on the level of investment, production and use of local content in Thailand: the lowest tax rate for domestic manufacturers using a high proportion of Thai parts, a middle rate for importers who enter to test the market and have plans to produce in Thailand, and the highest rate for importers selling without plans to invest in the country. It views this as a positive factor for Thai auto parts makers including AH, SAT and STANLY over the medium to long term, and expects AH's operating results in the second half of 2026 to recover continuously both half-on-half and year-on-year, driven by its cost-control strategy for selling and administrative expenses, and expects orders from new car models to come in the third quarter of 2026. It therefore raised its 2026 full-year profit forecast by 13% to 841 million baht, up 14% year-on-year, and its 2027 forecast by 15% to 908 million baht, up 8% year-on-year. It also upgraded its recommendation to "Buy" and raised its 2027 base valuation from 16.80 baht to 19.20 baht.
BYD Chairman Wang May Join Xi's US Visit, Corporate Delegation Candidates Number Over a Dozen
Bloomberg reported on the 16th that BYD Chairman Wang Chuanfu may accompany Chinese President Xi Jinping on his visit to the United States, expected to coincide with a US-China summit on the 24th of next week. Candidates for the corporate delegation number more than a dozen companies spanning sectors including high technology and agriculture, with the apparent aim of promoting increased purchases of American goods and investment in the United States. US President Trump said in an interview with Fox News on the 11th that if China wants to come to the United States and open automobile production plants, that is fine with him. BYD already operates an electric bus production plant in California, and accompanying the delegation would provide a foothold for expanding local production. Cai Qi, the fifth-ranked member of the Chinese Communist Party's Politburo Standing Committee, and others are scrutinizing the list of accompanying companies, and the situation remains fluid. The United States imposes tariffs of more than 100 percent on Chinese EVs, effectively shutting out Chinese passenger cars, and the US Department of Defense has designated BYD as a Chinese military company, so domestic opposition to its entry into the US market runs deep.
New 3-Tier EV Tax Structure Risks Shaking Up Thailand's Auto Industry
The three-tier EV tax measure emerging as a new game in Thailand's automotive industry is being analysed as potentially affecting the entire domestic manufacturing supply chain. The proposal divides the tax structure into three levels, and is only one part of the full set of EV tax measures the government is currently considering. News reports indicate that the design of each tax rate tier sets different conditions for importers and domestic producers. The key question is how much Thailand will actually benefit from this restructuring. The report was written by Pattraporn Kiatnun, Head of News at the Efinancethai news agency.
Ambassador Aikawa Voices Concern Over EU Industrial Accelerator Act, Questions WTO Compliance
Kazutoshi Aikawa, Japan's Ambassador to the European Union, in a contribution published on the 16th in the British newspaper the Financial Times, urged that the EU's planned Industrial Accelerator Act (IAA) not disadvantage "trustworthy partners" outside the bloc such as Japan. Regarding a proposal to make the use of EU-made components a condition for public support for company electric vehicles (EVs), he questioned its compatibility with World Trade Organization (WTO) rules. Aikawa pointed out that automobile production today rests on complex supply chains in which research and development, parts procurement, and assembly cross national borders. He argued that if EU-made parts are sent outside the bloc and then returned as finished products no longer recognized as EU-made, European companies could also be affected.
Hybrids to Reach 34% of US Market by 2030, Analyst Says, Lifting Auto ETFs
Automotive analyst John Murphy has predicted hybrids will account for 34% of the U.S. market by 2030, up from just over 18% in 2026, a shift that could redirect investor attention from speculative EV startups to established automakers and the automotive ETFs holding them. Hybrid electric vehicles reached a record 16% of light-duty vehicle sales in the second quarter of 2026, according to the U.S. Energy Information Administration, while battery electric vehicles saw their market share decline to 6% from 7% the previous year. Toyota, Honda and Hyundai Motor Group currently control 86% of the surging U.S. hybrid market, according to Baum & Associates data cited by CNBC, with Toyota selling over 600,000 hybrids in the United States in the first half of 2026 for a 50% market share and Honda's hybrids now accounting for 31% of American Honda's total sales. The shift has been driven by the expiration of the federal $7,500 EV tax credit in September 2025, which raised the cost of pure EVs by thousands of dollars overnight, and by hybrid pricing that has dropped considerably, with Toyota, Honda, Ford, Hyundai and Kia pushing hybrid variants into their most popular mainstream models at a modest upcharge of $1,500-$2,000. Among the funds positioned for the trend, the Global X Autonomous & Electric Vehicles ETF DRIV, with net assets of $359.2 million, has gained 12.3% year to date and charges 68 basis points, while the First Trust S-Network Future Vehicles & Technology ETF CARZ, with net assets of $46.7 million, has rallied 33% year to date and charges 70 basis points, and the State Street SPDR S&P Kensho Smart Mobility ETF HAIL, with assets under management of $18 million, has risen 3.7% year to date and charges 45 basis points.
Second-Life EV Battery Market Projected to Reach USD 224.24 Billion by 2040
The second-life electric vehicle battery market is projected to grow from USD 1.70 billion in 2026 to USD 224.24 billion by 2040, according to a Research and Markets report published on GlobeNewswire. The growth is driven by increasing EV adoption and demand for cost-effective stationary energy storage, with applications in renewable energy storage, grid balancing, and EV charging. The market's expansion is supported by circular economy policies, automaker partnerships, and technologies such as AI diagnostics, though performance variability and end-of-life management remain challenges. Separately, XPeng filed a shelf registration this week for $74.9 million involving an ESOP-related offering of 14 million Class A Ordinary Shares; its shares fell 4.5% to $10.23, while HGTECH rose 5.8% to CN¥105.98 and Tesla closed at $356.58, down 0.7%.
Taiyi Shanglian to Acquire 70.6% of Bankrupt Neta Auto for CNY 3 Billion
Zhejiang Taiyi Shanglian Enterprise Management Partnership is set to acquire a 70.6% stake in Hozon New Energy Automobile Company, the bankrupt parent of Chinese battery electric vehicle start-up Neta Auto, for CNY 3 billion, or US$ 447 million. Taiyi Shanglian is a management company established earlier this year by Zhejiang Shanzi Holdings Company and Zhejiang Shanzi Yuxu Technology Company. A fourth Hozon creditors meeting held online on 11 September produced a new Draft Reorganization Plan under which CNY 1.17 billion of the restructuring fund will cover legacy debt, including paying off creditors of retained assets, bankruptcy expenses and other restructuring costs, while the remaining CNY 1.83 billion will be injected into Hozon as working capital to restart production and sales, rebuild supply chains and restore after-sales networks. Equipment for the Neta L and Neta X SUVs is to be retained as core operating assets, while equipment for the Neta S and GT sedans is classified as non-core and may be disposed of separately. The draft sets out a three-stage recovery plan: a first-year sales target of 10,000 vehicles starting with Neta X production and addressing warranty claims of the existing 400,000 Neta owners, then scaling to an annual output of 300,000 vehicles with models tailored for emerging markets in Asia, Africa and Latin America, and finally developing global intelligent electric vehicle models, reaching an annual output value of CNY 40 billion and preparing for an initial public offering.
Indonesia August Vehicle Sales Jump 32% on Trucks and EVs
Indonesian new vehicle sales rose 32% year-on-year to 81,756 units in August 2026, up from 61,771 units a year earlier, according to wholesale data from the local automotive industry association Gaikindo. For the first eight months of 2026, the market expanded 20% to 599,491 units, with light passenger vehicle sales up over 13% to 437,374 units and commercial vehicle sales up 42% to 162,117 units, including a 54% surge in light- and medium-duty trucks to 131,813 units. Battery electric vehicle sales nearly doubled to 103,300 units year-to-date from 53,100 units, driven by Chinese brands and government tax incentives. Toyota led the first eight months with sales up 9% to 175,931 units, followed by Daihatsu at 100,884 units, Suzuki at 47,908 units and Mitsubishi Motors at 43,753 units, while BYD jumped 98% to 37,696 units to take fifth place ahead of Honda, which fell 37% to 26,437 units. Overall vehicle production rose 13% to 859,256 units in the period, and GlobalData forecasts Indonesia light vehicle sales to rise 3% to 770,000 units in 2026 from 750,000 units in 2025, easing to 765,000 units in 2027.
Tisco keeps Buy on CATL01 with 7.65 baht target, 60% upside
Tisco Securities released an analysis on September 16, 2026, maintaining a Buy recommendation for 3750 HK, the stock of Contemporary Amperex Technology Co., Limited, or CATL, with a target price of 810 Hong Kong dollars per share. The depositary receipt referencing that stock and listed in Thailand under the name CATL01 carries a target price of 7.65 baht per share, implying 60.0% upside from 4.78 baht per share. The research team said that although the market is worried about CATL's declining market share, its US sales, and the issue of excess battery capacity, the firm views these factors as an investment opportunity. CATL's market share in August 2026 fell for a fourth consecutive month to 41.5%, down from 49.8% at the start of the year, while rival BYD raised its market share to 21.0%, an increase of 3.6 percentage points since the start of the year. The research team remains unconcerned about the excess capacity issue, even though China's monthly battery capacity in August 2026 stood at 237 GWh, up 69.8% from the same period a year earlier, because domestic Chinese battery demand, covering both the electric vehicle market and energy storage systems, was 223.1 GWh, up 65.9%, and that figure does not yet include demand from overseas markets. The target price valuation is based on a forward P/E assumption of 26.4 times and estimated 2027 earnings per share of 30.63 Hong Kong dollars per share. The 3750 HK stock price is 495.4 Hong Kong dollars, while CATL01 is at 4.78 baht. The research team noted that the prices of the underlying stock and the DR may be affected by exchange rate movements.
Bosch Workers Urge EU Action as Supplier Cuts 13,000 Jobs
Labour representatives at German auto supplier Bosch called on Wednesday for political action at EU level to stem job losses in the industry, urging regulations that promote local production. Frank Sell, head of the general works council at Bosch's Mobility unit, which represents around 70,000 German workers, said the transformation of the industry will only succeed if value creation and jobs stay in Europe. Bosch is cutting 13,000 jobs in its core automotive business by the end of the decade, part of a wave of layoffs across the sector as carmakers including Volkswagen, BMW and Mercedes-Benz battle Chinese competition, tariffs and high production costs. Sell demanded clear Made in the EU rules that give the company the time it needs to become competitive. The European Commission is assessing trade measures that could shield local industry from low-cost Chinese carmakers such as BYD and Chery, which are increasingly looking to Europe for growth as their home market slows, and EU leaders are expected to discuss the bloc's widening trade deficit with China next month.
Shadow Cabinet Slams Government for Extending Thai Chai Thai Plus, Says It Seeks Popularity Rather Than Solving Problems
Veerayuth Kanchuchat, deputy leader of the People's Party, disclosed the results of the 12th Shadow Cabinet meeting, saying that the government's plan to extend the Thai Chai Thai Plus programme by shifting funds from the allocation set aside for the energy transition may not address the economy's long-term needs, because it uses roughly 200 billion baht to stimulate consumption on only one side, while there are still no sufficiently concrete measures to help SME operators and tackle falling agricultural prices. He viewed this as spending money to preserve political popularity rather than to directly help those affected by the energy crisis. On automotive industry policy, the People's Party has been calling on the government to address this problem for many years, but the government only began to move after news emerged of a race to capture investment bases in the region, and the approach now under consideration is turning back toward tax measures, especially raising the excise tax on imported EVs. If the real goal is to maintain local content, then domestic parts and raw materials should be used, along with creating added value for the Thai supply chain, because raising the excise tax is only an indirect measure and is not enough to guarantee that this goal will be achieved. Veerayuth therefore proposed four measures that should be carried out directly: tightening the criteria for counting local content by EV makers that receive subsidies and are in the period of production offsetting; promoting investment that moves Thai industry toward future vehicles, such as supporting the establishment of research and development centres in the country and developing software systems for modern vehicles; allocating budget and setting KPIs for skills development for the roughly 400,000 to 500,000 workers in the automotive industry, so that workers from the internal combustion engine industry can transition to the hybrid and EV industries; and supporting SMEs in the auto parts industry, especially Tier 3 and Tier 4 operators, in upgrading machinery and production processes to meet environmental measures in export markets, which increasingly require verification of carbon emission traceability.
Trump Administration Appeals Ruling Blocking California Emissions Waiver Repeal
The Trump administration has appealed a federal court ruling that blocked the EPA from sending California's landmark vehicle emissions rules to the Republican-controlled Congress for a fast-track repeal. On September 2, U.S. District Judge Beryl Howell in Washington ruled the EPA had acted improperly by sending four waivers in June to Congress for review, including rules enacting stricter emissions standards for cars and trucks as well as for lawn-and-garden equipment. In June, the EPA said the vehicle emissions waivers granted to California under prior Democratic administrations should have been sent to lawmakers under the Congressional Review Act, which would allow the U.S. Senate to repeal them by a simple majority rather than the 60 votes needed for most legislation. Separately, the U.S. House of Representatives is set to vote as soon as this week to repeal California environmental rules on ocean-going vessels and commercial harbor craft, despite Howell's ruling Friday that declared the EPA's transmission of those rules to Congress in July improper, Reuters reported. Last year, Congress revoked California's authority to ban new gasoline-powered vehicles after 2035, following lobbying by Toyota, General Motors and other automakers seeking relief from the state's emissions rules.
EV Board Approves Three-Tier Excise Tax Framework for Electric Vehicles, Final Decision Expected in September
The National Electric Vehicle Policy Committee, known as the EV Board, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, has approved the framework for restructuring the excise tax on electric vehicles using a three-tier rate structure. According to Porchai Teeravej, Director-General of the Excise Department, electric vehicles using domestic parts, or local content, will pay the lowest tax rate; electric vehicles using both imported and domestic parts will pay a higher rate; and fully imported electric vehicles, or CBU, will pay the highest rate. The imported tier will be taxed first in order to reduce the high proportion of imports, and the private sector agrees while discussing a grace period. Under the framework, the highest tier must rise above 10%, though no exact figure has been set. The EV Board has assigned the Ministry of Finance and the Excise Department to continue discussions, with a conclusion expected within September before being proposed to the Cabinet. Dr. Rujiphan Assarat, Assistant Managing Director of Kasikorn Research Center Co., Ltd., noted that most vehicle imports today are battery electric vehicles, or BEVs, at about 72% of all imports, followed by hybrids and plug-in hybrids at 13% and combustion-engine vehicles at 15%. This year, BEV sales are expected to reach one-third of domestic car sales, but the concern is that about 60% of BEV sales are imported vehicles. Under the three-tier tax proposal, the first group covers those with domestic production plants, which will receive tax rates equal to the structure announced effective January 1, 2026, with added conditions on the local content proportion that are still under discussion. There are two scenarios on the table: local content above 40%, and local content of 30% plus e-Parts. If the conditions are met, they will receive rates under the current structure, where BEVs are at just 2%, while hybrids depend on the volume of carbon dioxide emitted. The second group covers those without domestic plants, with rates under discussion at more than 10%, and an import quota set at no more than 10% of the production capacity applied for with the BOI, with production required to compensate for imports. For BEV imports, compensation production is on a 1-to-1 ratio if producing BEVs, or 1-to-2 if producing hybrids. For hybrid imports, compensation production may be either hybrids or BEVs. The third group covers CBU imports with no plan to build a plant in Thailand, which will pay a high rate of more than 30%, though this is not yet finalized. Kasikorn Research Center assesses that this measure will tend to reduce imported vehicles, lower price competition, and push car prices higher, but it will increase vehicle production. Thai vehicle output is expected to return to expansion in 2027 at 4.9%, after an estimated contraction of 1.8% this year.
Renault and Geely to invest an additional 319 million euros in Brazil, expanding partnership
French auto giant Renault and Chinese peer Geely Automobile announced on the 15th that they will invest a further 319 million euros in Brazil through their joint venture, strengthening their partnership in that market. With this new investment, the two companies' total investment in Brazil from 2025 to 2027 will reach 899 million euros. According to Renault, the agreement will allow Geely to use Renault's existing plants and dealership network, while Renault will be able to raise utilization at its assembly plants and add large vehicles to its lineup. Under the new investment plan, Renault will begin producing its flex-fuel-capable four-wheel-drive hybrid system, Hybrid E-Tech, in Brazil starting in 2027. In Brazil, rival Chinese electric vehicle giant BYD is steadily building a foothold with affordable EVs and plug-in hybrids.
MGC Partners with ROYS HOTEL to Launch EV XPENG Guest Shuttle Service, Boosting SIXT Car Rental Business
MGC is advancing its Mobility Ecosystem through its SIXT car rental business by partnering with ROYS HOTEL to provide guest shuttle services using XPENG electric vehicles, catering to the tourism market and the clean energy vehicle trend. Ms. Sukolkarn Thammachuanwiriya, Director and Chief Corporate Communications and Customer Relations Officer of Millennium Group Corporation (Asia) Public Company Limited, or MGC, stated that the car rental business continues to generate steadily increasing recurring revenue, and in terms of marketing, SIXT has been brought in to complement the hotel business. SIXT Car Rental Thailand is a global short-term car rental and limousine service brand operated under MGC. As for ROYS HOTEL, a business in the Thammachuanwiriya family, a budget of 300 million baht has been allocated for a major renovation of the building and premises from its former name ROYAL SUITE, which opened in 1997, to elevate it to a 4-star standard under the theme Design Your Stay. The hotel will have a total of 153 rooms, sized from approximately 25 square meters and up, and aims to open rooms on floors 8 to 11 in time for the High Season, with full 100% operations targeted within 2027.
Tesla Reclaims 52% US EV Market Share as Rivals Retreat
Tesla has reclaimed a 52% share of the US electric vehicle market even as overall industry sales fell 30% through August, according to The Wall Street Journal, while Tesla's own sales were off 16%. The recovery follows a brutal stretch in which Tesla stock fell from $436 a share at the start of 2025 to $240 by late April, wiping out more than $500 billion in market capitalization, and S&P Global Mobility Research found brand loyalty had plunged. GM, Ford, and rivals based in South Korea and Europe have largely abandoned their US EV ambitions and retooled factories for other products, leaving Tesla with virtually no serious domestic competition. Tesla now relies on just two models, the Model Y and Model 3, after discontinuing the Model S and Model X, and no major overhaul appears planned in the near term. Its Full Self-Driving Supervised software is widely regarded as the industry's best, and a large base of subscribers paying $99 a month positions Tesla to capitalize quickly if regulators approve real self-driving.
Chinese Vehicle Sales Fall 5.1% in August as Domestic Demand Slumps
Global sales of Chinese-made vehicles, including exports, declined by 5.1% year-on-year to 2.712 million units in August 2026, according to wholesale data compiled by the China Association of Automobile Manufacturers. Domestic sales plunged by 24% to 1.702 million units last month, while exports surged by 65% to 1.010 million units from 611,000 units a year earlier. Within the total, light passenger vehicle sales declined by 6.2% to 2.383 million units and commercial vehicle sales rose by 4.1% to 329,000 units, while overall vehicle production fell by 4.7% to 2.684 million units. The market has struggled against strong year-earlier volumes and the withdrawal of some government subsidies and tax exemptions for new energy vehicles at the end of last year, though the vehicle trade-in subsidy programme has been extended until the end of 2026. In the first eight months of 2026, sales of Chinese-made vehicles declined by 3.8% to 20.315 million units, with domestic sales down 22% to 13.162 million units and exports up 67% to 7.153 million units. GlobalData is forecasting a 13% decline in light vehicle sales to 23.4 million units in 2026, down from 26.9 million units in 2025.
GAC Group Signs Letter of Intent to Buy FAW Stake in Automotive JV
GAC Group has signed a letter of intent with FAW Group to acquire part of FAW's equity interest in an unnamed automotive joint venture. The purchase would be carried out through a share issuance by GAC Group together with a supporting fundraising exercise, and GAC Group said the deal is expected to be treated as both a material asset restructuring and a connected transaction, while not altering its ultimate controlling party or amounting to a backdoor listing. GAC Group did not name the joint venture, saying the restructuring involves a company listed overseas and that more information will be released once the restructuring plan is finalised. Trading in GAC Group's A shares was suspended from the opening of the market on 14 September 2026, when the announcement was issued, while the proposed transaction is pending. The company described the letter of intent as a preliminary step and said the final terms remain subject to a formal agreement and regulatory approval. FAW, named as the initial counterparty, was set up as a joint stock company on 28 June 2011 and is based in Changchun, Jilin Province.
Singapore EV Market to Reach US$1.58 Billion by 2030, Databook Q2 2026 Finds
Singapore's electric vehicle market is forecast to grow 7.9% annually to reach US$1.17 billion in 2026 and approximately US$1.58 billion by the end of 2030, according to the Databook Q2 2026 Update added to ResearchAndMarkets.com. The market, which grew at a compound annual growth rate of 7.2% between 2021 and 2025, is projected to maintain a 7.7% CAGR from 2026 to 2030, rising from US$1.09 billion in 2025. The report tracks more than 100 key performance indicators across vehicle type, drive type, vehicle class, powertrain, propulsion type, distance range, charging type, charging infrastructure, connectivity and key players. Wider model availability from BYD, Tesla, Hyundai, BMW and Mercedes-Benz is intensifying competition, while the Land Transport Authority has awarded contracts for 660 electric buses to suppliers including ST Engineering Mobility Services with CRRC, BYD, Yutong, and Cycle & Carriage Automotive with Zhongtong. Shell Singapore, SP Mobility and Charge+ are among the companies developing the country's charging ecosystem, and partnerships such as Grab with WeRide and Momenta, and ComfortDelGro with Pony.ai, point to a convergence of electrification and autonomous mobility. Reuters reported that BYD led Singapore vehicle sales during the first four months of 2025, ahead of Toyota and Tesla, with additional Chinese brands including Chery, Deepal and Dongfeng widening consumer choice.
EU Revises Draft EV Law to Raise European Content Share to 75%
The European Union has revised draft legislation to boost support for electric vehicles produced in Europe through subsidies and public procurement, aiming to protect the bloc's domestic industry amid fierce competition. The original draft required that 70% of components used in EVs, excluding batteries, be sourced from within the EU to qualify for public procurement rights and subsidies, but the latest amendment has raised that share to 75% while significantly reducing benefits for trading partners, including Japan, creating a tougher environment for Japanese automakers that source components from outside the EU. Christophe Grudler, a co-rapporteur for the European Parliament's Committee on Industry, Research and Energy, said at a press conference on Monday, September 14, that the EU's electric vehicle industry could disappear without protective measures. Japan has been lobbying the EU to revise the Industrial Accelerator Act, a framework proposed in March to strengthen the EU's industry by adding European-made low-carbon goods, with the main objective of countering competition from Chinese manufacturers.
AGE sees EV import tariff adjustment balancing the market without hurting sales
Pongtham Danwangdoem, Head of Investment at Asia Green Energy Public Company Limited, or AGE, and Managing Director of AGE Venture Company Limited, told Than Hoon that the government's move to raise the import tariff rate on electric vehicles is likely to settle at a balance point between Japanese and Chinese automakers, and he believes it will not affect sales in the near term, because the EV brands the company manages have already prepared to a certain extent for the policy change. The company expects sales to remain strong on continued market demand, combined with global oil prices that have just climbed back to around 100 dollars per barrel, a factor pushing more consumers to consider switching to electric vehicles. At the same time, the tariff increase, which has not yet taken immediate effect, may trigger a rush of buying beyond normal levels. The company therefore plans to manage its inventory several months in advance to ensure sufficient supply for demand throughout the year, and expects its automotive business performance in the second half to grow substantially better than in the first half. Currently, the automotive business accounts for about 35 percent of AGE's total revenue, and the company expects the share from the electric vehicle business to expand to about 40 percent of total revenue by the end of this year. Its other three core businesses, coal, Smart Logistics, and Sustainable Energy, also remain on a good trajectory, in line with the business plan the company has announced: in 2026, AGE still aims to drive growth in its core businesses, expand new businesses, improve cost management efficiency, and maintain its competitiveness. It also views Low Emission Mobility as one of the businesses with growth potential that will support the group's revenue growth over the long term.
GAC Group Plans Major Asset Restructuring, Proposes Share Issuance to Acquire Part of FAW Group's Joint Venture Automaker Stake
GAC Group issued a trading halt announcement on the evening of September 14, stating it is planning a major asset restructuring. The company intends to acquire part of a joint venture automaker stake held by FAW Group through a share issuance and raise supporting funds. The two parties have signed a letter of intent. Upon completion of the transaction, FAW Group will become GAC Group's second-largest shareholder with strategic influence. The deal is expected to constitute a major asset restructuring and a related-party transaction, but will not result in a change of actual controller or a backdoor listing. It is still in the planning stage. Following an application to the Shanghai Stock Exchange, GAC Group's A-shares were suspended from trading starting September 14, 2026, with the halt expected to last no more than 10 trading days. As of September 14, GAC Group's share price stood at 5.09 yuan per share, with a total market capitalization of 43.23 billion yuan. Earlier on September 11, nine government departments including the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the 15th Five-Year Plan for the intelligent connected new energy vehicle industry, proposing that by 2030 the advantages of the entire industry chain will be further consolidated and vehicles with autonomous driving functions will achieve large-scale application. On the same day, titanium dioxide leader Lomon Billions Group took the lead in issuing a price increase notice, raising domestic market prices by 700 yuan per tonne and international market prices by 100 US dollars per tonne. Subsequently, more than twenty companies including Anada, Titanium Energy Chemical, and Dawn Titanium Industry followed suit with increases consistent with Lomon Billions Group, officially kicking off the sixth round of collective price hikes for titanium dioxide this year.
Tesla Registers Vietnam Subsidiary as China Market Share Slides
Tesla Inc. is expanding into Vietnam, establishing a local subsidiary authorized to import, distribute and sell vehicles as competition intensifies in neighboring China. Tesla Motors Vietnam was registered in Ho Chi Minh City on Sept. 11 with roughly $3 million in charter capital, according to Reuters, though Tesla has not yet said when vehicle sales will begin. The move comes as Tesla's share of China's battery-electric vehicle market fell to 6.6% in the second quarter from more than 15% in 2020, with China retail sales down 12.4% year over year in August to 50,047 vehicles. In Vietnam, Tesla will face homegrown competitor VinFast Auto Ltd., which delivered 20,161 EVs domestically in August, taking preliminary domestic deliveries to 154,073 through the first eight months of 2026. Meanwhile, Kalshi traders put a 55% chance on Tesla topping 490,000 deliveries in the third quarter but only a 42% chance of exceeding 495,000, leaning toward a year-over-year decline from the record 497,099 vehicles delivered in the third quarter of 2025.