Hotai Motor has cut its 2026 Taiwan auto market forecast, signaling softer demand may linger after tariff-related weakness in the first half. The move matters beyond Taiwan because shortages of hybrids, electric vehicles, and US-made models continue to shape availability and pricing for global buyers, automakers, and suppliers.
Taiwan's auto market posted a strong rebound in June 2026, signaling firmer demand in a key Asian economy watched by global carmakers. Registrations rose sharply in the month and year, led by Toyota's steady performance and a surge in Tesla deliveries that reshaped the local ranking.
Rising oil prices as a result of the war in Iran have caused the originally sluggish used electric vehicle (EV) market in Europe to flip, with demand now outpacing supply. Three-year-old used EVs are now priced at around EUR20,000, falling within reach of most consumers, while also offering lower long-term charging costs than fuel for internal combustion engine (ICE) vehicles. However, it remains to be seen how long this demand surge will last.
Gus Technology has named Hota Group president Kuo-jung Shen as chairman after a June 30 shareholders' meeting, underscoring a deeper push into batteries, electric mobility, and energy systems. The move could shape supply chains serving vehicle makers, AI data centers, and industrial users as demand for backup power and high-performance batteries expands globally.
Volkswagen Group and Bosch are reportedly reviewing their four-year autonomous driving partnership as Europe's Level 3 (L3) rollout falls short and China's supply chain gains influence. The outcome could affect the development of smart driving, investment plans, and software strategies across major global automakers, suppliers, and consumers in both Western and Chinese markets.
China's latest policy to expand auto aftermarket consumption stands to reshape demand for parts, repairs, and modifications at home, yet its implications extend far beyond its borders. For global suppliers, the move highlights a fast-changing market where local competition is intense, even as export-oriented manufacturers continue to focus on the larger, more mature US market.
The global automotive supply chain remained in turmoil in the first half of 2026 due primarily to geopolitical challenges and subsidy adjustments in Europe, the US, and China, as well as external factors including inflation, armed conflicts, and swings in consumer spending.
Taiwan's auto industry has begun to recover as recent clarity around US tariff policy eased months of pressure on manufacturers, dealers and aftermarket parts exporters, executives said. The shift, reported in late June, allowed delayed parts imports and new-car assembly schedules to resume, enabling factories and dealers to reconfigure production and prepare for the traditional sales peak in the second half of the year.
Horizon Robotics has become China's No. 2 supplier of intelligent-driving domain controller chips, but its next test is harder: deepening BYD ties, fending off automakers' in-house chip plans, and turning its software ecosystem into profit.
Honda Motor has begun producing data-center batteries at an Ohio factory originally built to supply electric vehicles, as automakers and battery suppliers seek new uses for capacity while EV demand cools.
Amid the ongoing AI race between the US and China, industry players in South Korea are now focusing on physical AI as a competitive factor, with manufacturing momentum as a core advantage, according to Park Min-woo, head of Hyundai Motor's Advanced Vehicle Platform (AVP) division and CEO of 42dot.
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