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.

China's largest domestic Tier 1 auto parts supplier, Jingwei Hirain, is stepping up its push into Malaysia and the ASEAN market, with President Chengjian Fan saying the region will become an important window for auto supply chain planning over the next 3-5 years.

Automotive components manufacturer Hiroca Holdings stated on August 27 that although losses were still recorded in the second quarter of 2026 due to weak pull-ins from China's domestic market, the loss narrowed slightly compared with the first quarter. Continued optimization of its product mix and stable overseas orders for high-margin products also helped cushion the downturn.

At GATE 2026, Kaizhong, a major Chinese commutator maker, used its display to showcase how its automotive business has laid the groundwork for expansion into data centers, dexterous hands, and drones. The company is also targeting new opportunities in Southeast Asia as Chinese automakers deepen their regional footprint.

LG Innotek said it will mass produce and supply automotive camera modules for Zoox, Amazon's autonomous vehicle unit. The deal marks the Korean component maker's first mass production win for a robotaxi camera module and extends a partnership that began during Zoox's early development phase.

China's lithium battery industry is shifting from an era of aggressive capacity expansion toward consolidation, as regulators rapidly clear deals aimed at revitalizing existing assets and closing gaps across the supply chain. The unconditional approval of six recent transactions involving batteries, energy storage, and new-energy materials — including one cleared in just 10 days — signals that Beijing sees mergers and acquisitions (M&As) as an increasingly important tool for restructuring an industry squeezed by overcapacity and price wars.