As the European Union pushes forward with mandatory quotas to accelerate the electrification of corporate and commercial vehicle fleets, its top-down approach is encountering significant market resistance. In stark contrast, China has surged ahead with a dual-track strategy—one that marries policy incentives with economic viability—resulting in widespread adoption and far greater momentum.
The European Union is preparing to push its green transition into a new and more forceful phase — one that could spark a contentious standoff with parts of its own automotive industry.
On October 9, 2025, China's Ministry of Commerce issued Announcements No. 61 and 62, expanding export controls on rare earths. The scope now extends beyond raw materials to include equipment, technology, and assemblies containing rare earth elements. An extraterritorial clause was also introduced, stating that foreign products containing a certain proportion of Chinese-origin rare earths or manufactured using Chinese technology must also apply for export licenses. China emphasized that this clause was intended to improve the regulatory system; in response, the US raised tariffs.
In just three months, China has implemented two sweeping rounds of export restrictions on its lithium battery supply chain, marking a sharp shift in Beijing's strategy from simple industrial protectionism toward a broader geo-economic agenda.
A fatal crash involving a Xiaomi SU7 electric sedan in the southwestern city of Chengdu has raised new questions about the safety of electronic car doors, after reports that the vehicle's doors failed to open following impact.
Long known for its disruptive innovations in electric vehicles, Tesla is now undergoing a deeper transformation, one that extends far beyond cars. As artificial intelligence (AI) reshapes industries and geopolitical tensions disrupt global supply chains, Tesla's recent move toward lower-priced EVs signals a broader organizational pivot: a long-term strategy that places AI, robotics, and semiconductor self-reliance at the core of its future.
A breakdown in the proposed partnership between Hon Hai Precision Industry (Foxconn) and Nissan Motor, regarding the automaker's Oppama plant in Yokosuka, Kanagawa Prefecture, has been reported. According to Japanese media reports, Foxconn ended negotiations in mid-September 2025 due to Nissan's delayed and unclear responses, internal concerns about foreign investment cooperation, and a proposed asking price of JPY100 billion (US$653.87 million), significantly higher than market valuation.
LG Electronics has successfully entered the supply chains of eight out of the world's top 10 automakers, leveraging its automotive electronics and software-defined vehicle (SDV) solutions to expand its presence in the rapidly evolving auto industry.
Tesla has rolled out new, lower-cost versions of its two best-selling vehicles—the Model 3 and Model Y—under the "Standard" badge, both starting under US$40,000. While the move helps fill a gap left by delays to Tesla's next-generation vehicle platform, it also underscores a deeper strategic pivot: away from hardware-centric upgrades and toward an intensified focus on artificial intelligence (AI) and robotics.
In recent years, China's traditional industries and those with lower technical barriers have faced intensifying competition, with bad money driving out good. This trend threatens long-term industrial development and competitiveness. Taiwan's industry value chains face similar challenges amid tariffs, exchange rates, and geopolitical risks, compounded by worsening competition among small and medium enterprises (SMEs). It is imperative to take action now to tackle the problem.
The global automotive aftermarket (AM) parts sector continues to benefit from shifting vehicle usage patterns, even as overall car market demand remains volatile, and this has benefited players such as Hushan and Tong Yang in achieving increased revenues in September.
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