The global automotive supply chain is undergoing significant restructuring driven by geopolitical tensions, particularly between the US and China. This confrontation has extended beyond trade into technology sectors, including chips, algorithms, and electronic control architectures, resulting in the emergence of two incompatible technical ecosystems. This division is compelling industry players to re-evaluate supply chain strategies amid growing concerns over reliance on Chinese components.

Hiroca Holdings, a Taiwan-based supplier of automotive interior components, said its new automated coating line in Mexico is on track to begin phased production by the end of 2025, a move that will support rising orders from major American and Japanese automakers operating in North America. Because the Lunar New Year will fall later than usual in 2026, the company does not expect Taiwanese automakers to pull forward year-end inventory builds in December 2025.

Innolux subsidiary CarUX formally completed its acquisition of Japan's Pioneer on December 1, 2025, a deal that is expected to boost CarUX's annual revenue to as much as NT$100 billion (approximately US$3.2 billion). Jim Hung, chairman of Innolux and CarUX, described the transaction as the company's most significant merger since Innolux's own three-way consolidation, adding that the two sides clicked immediately, and that the combined company will enjoy three major synergies and three strategic advantages.

Germany's auto market is expected to hit a critical turning point in its shift to electrification in 2026.

Mexico is preparing a major shift in its trade policy, approving broad tariffs on imports from Asian countries without free-trade agreements, including China, India, and South Korea. According to The Economic Times, the Senate passed the bill on December 10, 2025, with 76 votes in favor, 5 against, and 35 abstentions.

The global automotive supply chain is experiencing significant restructuring as the divide between China and other major economies widens. China's intensified efforts to achieve full self-sufficiency in both hardware and software for automotive technology are imposing a new technological barrier that challenges Taiwan's position, particularly in integrated circuit (IC) chip and smart algorithm supply.

EV battery fires in underground parking lots have drawn significant attention in South Korea. In response, the South Korean government is implementing comprehensive safety policies covering the entire battery lifecycle, from manufacturing and vehicle operation to disposal.

Yulon Mobility Group (YMG) subsidiaries Carplus and Singan, known for their steady operations in automotive, travel, and vehicle services, are pursuing future strategies centered on ESG and AI.

Foxconn Interconnect Technology (FIT), a subsidiary of Foxconn, announced on December 9, 2025, that its joint venture Smart Mobility with Saudi Arabia's Saleh Suleiman Alrajhi & Sons has officially broken ground on a manufacturing base at the King Salman Energy Park (SPARK) in Dammam. This marks a new phase for localized EV charging station production in Saudi Arabia.

South Korea's electric-vehicle (EV) charging industry has long held a technological edge, with world-class hardware and contributions to international standards. Yet its domestic market remains small, and its reliance on imported core components has pushed major players into a difficult corner.

Tesla continues to demonstrate strong growth momentum in Taiwan's new-car market, with all in-stock Model 3 and Model Y units for the current quarter already sold out. Coordinated with a large shipment of new cars arriving at the end of each quarter, December will see mass deliveries, with over 6,000 new vehicles expected to be delivered in the fourth quarter, an increase of 68% compared to the same period in 2024.