The global battery space has long been characterized by China's overwhelming dominance, leaving other established players subdued and struggling to establish a foothold in the industry for years.

The 2026 Global Automotive and Technology Expo (GATE 2026) closed on August 28 at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur. It highlighted Malaysia's contradictory but pragmatic stance toward China in the auto sector. Over the three-day event, the main story for ASEAN's auto industry was not a new car or new technology. It was Malaysia's balancing act around the "China factor."

A Chinese autonomous driving vendor is set to take a commercial position in a market whose own robotaxi industry has yet to clear the hurdle to commercialization. Pony.ai and South Korea's FutureLink signed a strategic cooperation agreement on August 28 at the Conrad Seoul in Yeouido to introduce 200 seventh-generation robotaxis, targeting fully driverless operation in Seoul by 2028, The Asia Business Daily reported. Pony.ai co-founder and chief executive James Peng attended the signing alongside FutureLink chairman Nam Kyung-pil and chief executive Cha Doo-won, according to SBS.

MCE Holdings Berhad (MCE) is expanding its product lines and capacity as Chinese competitors intensify pressure on Malaysia's auto parts industry, with the company aiming to defend its position as a leading local supplier.

AI is reshaping the autonomous driving competition by shifting automakers away from an all-or-nothing race toward higher levels of self-driving. Instead, the industry is focusing on Level 2+ systems that mimic Level 3 performance, while building data, revenue, and regulatory groundwork that could matter for drivers and markets worldwide.

Research Insight: Humanoid robots near mass production as suppliers face precision and ramp-up test

The seizure of a Zhang Xue 820RR, a Chinese heavyweight motorcycle smuggled into Taiwan as parts and hand-assembled locally, has expanded far beyond a customs enforcement case. Following public, aggressive pushback from brand founder Zhang Xue, the dispute quickly escalated from a trade violation into a high-profile debate on the structural health of Taiwan's motorcycle industry and the regulatory gray areas surrounding cross-strait commerce.

US President Donald Trump signed an executive order on August 26 declaring a national emergency over the security of America's electrical grid. It restricts the purchase, import, and installation of certain foreign-made "bulk-power system" equipment on cybersecurity and national-security grounds.

Southeast Asia's EV market is expected to reach US$23.58 billion by 2031, with a 2026-2031 CAGR of 31.55%. But Malaysia's charging infrastructure is falling well behind government targets, creating an opening for Chinese hardware suppliers.

Hybrid and plug-in hybrid demand continues to grow across ASEAN, with Malaysia, Indonesia and Thailand posting the strongest sales gains. The shift is drawing local Southeast Asian automakers and Chinese brands into a tougher fight for share.

As EV traction inverters increasingly migrate toward 800V architectures, demand for further technological upgrades designed to improve current-sensing performance has pushed the automotive supply chain into a challenging trade-off between precision and lightweight design.