For years, automakers have grappled with an underlying paradox stemming from persistent EV raw-material pressures, as supply chains worldwide have been constrained by a familiar battery-chemistry trade-off: cost-effectiveness versus high-performance density.

Stellantis said it will suspend operations at four auto assembly plants in France in October, citing shortages of long-range electric vehicle batteries and the need to control dealer inventories. The cuts come as the automaker adjusts output to match demand, with strong orders for EVs that use longer-range batteries continuing to outpace supply.

Japanese motor and electronic components maker Nidec said on September 30 that its long-delayed consolidated financial report for fiscal year 2025 (from April 2025 to March 2026) showed losses from accounting irregularities of JPY632.1 billion (US$3.99 billion), far above earlier estimates. Uncertainty over the company's turnaround also deepened after auditors declined to issue an opinion.

Auto components maker Hiroca posted a pre-tax loss of NT$146 million (US$4.57 million) in the first half of 2026, owing to weak demand in China's auto market and a number of one-time factors. However, during its earnings call on October 1, the company stressed that gross margin remained at a healthy 23–24%, and that most losses will be absorbed by the end of 2026, leaving no drag on earnings in 2027.

China's state-owned FAW and GAC's controlling shareholder, Guangzhou Automobile Industry Group, have signed a strategic cooperation framework that could reshape Toyota's long-standing two-joint-venture model in the country. The move reflects Beijing's push for industrial consolidation, while global automakers watch for wider implications for capacity, assets, and competition in China's fast-changing auto market.

Hiroca said two major Chinese automakers are likely to build factories in the US, a move that could redraw supply chains across North America, alter supplier demand patterns, and deepen pressure on parts makers already facing tighter pricing, faster product cycles, and weaker visibility in China's increasingly competitive auto market.

The aggressive rollout of large-scale infrastructure projects has brought increasingly visible changes across global economies and major technology supply chains, with much of that transformation now unfolding under the expanding influence of AI.

According to UBS, nearly twice as many China-made automobiles are being shipped to Europe as are being registered there, partly because trucking shortages delay deliveries from ports to dealers. The gap adds a new wrinkle in the battle for Europe between US and Chinese carmakers. Meanwhile, the vote on EU-wide approval of Tesla's supervised Full Self-Driving (FSD) system is unlikely before December 2026. Even as US and Chinese automakers face short-term challenges in their push in Europe, they continue to put ever-intensifying pressure on European automakers.

The Taiwan New Car Assessment Program (TNCAP) on September 30 released its third-quarter ratings, publishing the MG ZS assessment under its second-edition protocol, which gave the model an overall zero-star rating. MG Taiwan responded with a formal statement, saying the model is locally produced, meets Taiwan's vehicle safety inspection standards, and carries a safety inspection certificate along with multiple active and passive safety systems.

Volvo Car Taiwan acting president Eric Lin said on Sept. 30 that Taiwan's economy is improving on the back of the AI boom, but that the wealth gains are unlikely to translate into stronger car sales in the near term. He said the market is expected to stay flat in 2026 and turn more cautious in 2027.

ProLogium, a maker of inorganic lithium ceramic batteries, said construction and infrastructure work at its Dunkirk superfactory in France has started in phases, including power infrastructure and grid connection work, with a target to energize the construction site in early October 2026. The company is also pressing ahead with engineering design, certification of local suppliers in France and Europe, technology localization and talent development.