Germany's car market posted only modest growth in July, but battery electric vehicles and plug-in hybrids surged as internal combustion engine sales fell sharply. The shift was driven in part by government subsidies, which have boosted demand for new energy vehicles and helped Chinese automakers gain ground in Europe's biggest auto market.
AI is moving from infotainment into steering, braking, and other core driving functions, raising safety questions that matter far beyond one market. Traditional testing rules are no longer enough, Irene Chuang, senior business manager for Industrial Services and Information Security at TÜV Rheinland Taiwan, said at a Taiwan industry forum, as regulators and automakers worldwide confront black-box AI risks in vehicles.
China's auto exports climbed sharply in the first half of 2026 as the sector shifted from price-based competition to a focus on product value, according to the China Association of Automotive Manufacturers (CAAM).
From smartphones and smartwatches to emerging AI glasses, electric vehicles, autonomous driving systems, and the rapidly expanding drone industry, batteries have become the indispensable power source behind virtually every next-generation technology. More than just the "heart" of these products, batteries have also become one of the world's largest strategic growth markets.
Drones, robots and self-driving vehicles are becoming the new proving ground for artificial intelligence. Machines are taking on more decision-making themselves, rather than relying on the cloud. The reason is speed. When a system has to react in milliseconds, waiting on a round trip to external servers is not an option, whether it's avoiding a collision or detecting an unauthorized drone. Elan Microelectronics chairman I-hau Yeh says this shift, moving AI processing from edge computing directly onto the device itself, is becoming essential for unmanned systems. Few applications demand more speed and accuracy than counter-unmanned aircraft systems, or C-UAS: technology built to detect and respond to unauthorized drones.
Tesla has reportedly selected Samsung Electro-Mechanics and LG Innotek to supply camera modules for the Cybercab, a move that would give the South Korean suppliers a foothold in the automaker's purpose-built robotaxi as both expand beyond smartphones into automotive and physical AI applications.
China's Ministry of Industry and Information Technology launched surprise inspections in late July 2026 at five electric vehicle makers as Beijing widened its crackdown on "involution" industries. The checks focused on battery quality, smart-driving safety and marketing claims after years of intense price competition had raised concerns over product consistency and safety.
