China's auto industry has moved from capacity expansion and price competition into a final round of competition, as the decisive factor shifts to how each brand performs overseas. The reason is simple: overseas markets offer more rational margins, making the global expansion of Chinese brands increasingly important.

Xiaomi Auto moved aggressively in September 2026, officially launching its second product line, the SkyNomad extended-range SUV series, on September 7. The company also said cumulative deliveries have surpassed 800,000 vehicles and laid out a timetable to enter the European market in 2027. But behind the upbeat headlines, Taiwanese suppliers are settling for secondary-supplier roles.

A battery quality controversy involving GAC Aion has put supplier CALB, the world's fourth-largest EV battery maker, under scrutiny and highlighted a less comfortable side of China's breakneck expansion in new energy industries.

Tesla has finally put its purpose-built Cybercab onto public streets, marking a critical step in Elon Musk's years-long ambition to transform the EV maker into an autonomous mobility company.

Taiwan's Kian Shen is counting on chassis, lightweight panel frames, and the Lean3 electric vehicle to drive growth, with third-quarter 2026 performance expected to improve from the previous quarter as July returned to profitability and non-operating income provided additional support.

In a two-part strategy to drive growth, auto components maker Kian Shen Industrial, a division of Yulon Motor Group, is ramping up its Taiwan business while shifting its China-based investments toward export markets. According to company president Chiung-chih Tseng, China accounted for a substantial share of Yulon's profits in the past, but heated competition in the Chinese market is pushing the parent group to rely more on its core businesses in Taiwan, while its China-based investments turn toward exports.

China's intelligent driving market is advancing rapidly, but the true trial has only just begun for domestic smart driving chipmakers.

Taiwanese automotive microcontroller (MCU) maker SiliconAuto showcased its products at SEMICON Taiwan 2026, with CEO Gene Liu saying the company is now spotlighting AI chiplet architecture for automotive and industrial edge AI as carmakers seek more flexible chip designs.

China’s new energy vehicle import market continued to shrink in July, hitting its lowest level since 2026, as foreign automakers localize production and Chinese brands keep expanding their share. China imported just 125 battery electric vehicles in the month, equal to only four cars a day entering the market.

"Demo is not a product," Jingwei Hirain president Chengjian Fan told DIGITIMES in an interview, arguing that China's new-energy vehicle industry has learned hard lessons as fast-moving startups, deep in-house development, and tougher supplier scrutiny reshape the market. He said software demand has increased more than tenfold compared with the internal combustion engine era, while the fastest mass-production delivery cycle in China has been as short as 12 months.