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Jul 20
BYD targets Japan's Kei-car stronghold with low-cost EV challenge
BYD is pressing ahead with plans to enter Japan's all-electric kei-car market, stepping up promotional activity and appointing a brand ambassador in a sign of growing confidence about its formal expansion into one of the world's most specialised automotive segments.
Electric scooters have been traversing a bumpy road in Taiwan, with sales numbers tied to government subsidies, and cost measures squeezing margins for brands and suppliers alike. These tough conditions have led many to fade away from the market, as they seek to cut losses by postponing the launch of new models. However, brands focusing solely on electric scooters must launch new products to sustain market attention, cash flow, and investor confidence.
Chinese electric vehicle (EV) maker Li Auto has established a new subsidiary focused on IC chip design, underscoring its long-term strategy of developing core AI technologies in-house.

The world's biggest automakers are losing their long-held advantage as weaker demand, tariffs, and fierce competition reshape the market. For global readers, the shift signals a more cautious era for cars, where survival, restructuring, and overseas expansion may matter more than size, scale, or legacy brand power.

China's solar industry is still trapped in a painful shakeout after three straight years of losses across much of the supply chain, according to first-half reports from leading companies. Persistent overcapacity, weak downstream demand, and rising overseas barriers have left the sector under pressure, while investors are watching for signs that similar problems could spread to energy storage and new energy vehicles.
LG Energy Solution plans to establish a sodium-ion battery mother line at its Ochang Energy Plant in South Korea in 2026, seeking to narrow CATL's early commercial lead in energy storage systems.
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China's passenger vehicle market posted its sharpest slowdown in years in the first half of 2026, with private passenger car sales falling 20% year on year, according to the China Passenger Car Association. The slide has pushed exports from a growth driver to the main support for automakers, while also exposing the sector to growing geopolitical risk.
Semiconductor suppliers have begun rolling out one to two rounds of price increases and tighter allocations in the first half of 2026 as demand from GenAI, geopolitical tensions and inflation continue to reshape the market. Automakers have been watching closely for signs of a repeat of the pandemic-era auto chip shortage, but supply-chain sources said production has so far remained stable.
Hotai Leasing said on July 15 that Taiwan's auto market is expected to return gradually to normal growth in 2026 after tariff uncertainty, vehicle shortages, and tight financing pressured demand in 2025. The company also said younger consumers are increasingly shifting from car ownership to on-demand rental models, signaling a broader change in how vehicles are used in Taiwan.

Volkswagen, the world's second-largest automaker, has expanded production cuts and layoffs, drawing scrutiny to the pressures facing Europe's auto industry.

The US electric vehicle market showed signs of stabilizing in the second quarter of 2026 after federal clean-vehicle tax credits expired in September 2025, although sales remained well below year-earlier levels.