China's expanded vehicle trade-in program is set to reinforce its rise as the world's largest auto market, supporting domestic demand while intensifying export pressure overseas. As sales overtake Japan's for the first time, the policy highlights how Beijing is linking consumption stimulus with industrial and geopolitical ambitions.

The 2026 Taipei Auto Show will officially open on December 31, with Hyundai Motor's Taiwan general agent Nanyang Industrial projecting Taiwan's new car market to surpass 410,000 units in 2025. Nanyang has set a full-year sales target of 21,000 vehicles for 2026, aiming to capture a 5% market share.

Toyota Motor and its Taiwan distributor Hotai Motor introduced several refreshed and new models at the 2026 Taipei Auto Show, emphasizing diverse powertrains as their core strategy in Taiwan. The showcase underscored Toyota's commitment to expanding its electric and hybrid vehicle lineup.

In 2025, the global automotive industry faced major structural shifts and geopolitical disruptions. Slowing growth in battery electric vehicles, changes in US EV policies, and chip supply chain issues forced automakers and suppliers to speed up strategic changes. DIGITIMES News highlights the top 10 key trends shaping the industry this year, providing valuable insights for stakeholders.

Chinese electric vehicle manufacturers now hold nearly 30% of the Indian EV market, marking a significant shift amid New Delhi's consideration of easing investment restrictions. This development follows years of protective policies and high tariffs designed to shield domestic players such as Tata Motors and Mahindra & Mahindra from foreign competition.

After attending the 2025 Guangzhou Auto Show, DIGITIMES analyzed the latest strategies unveiled by leading automakers and suppliers in two pivotal areas: energy replenishment technologies and advanced intelligent driving. The conclusion was hard to miss. Chinese carmakers have accumulated deep technical capabilities in both domains and are moving steadily toward a long-held ambition: making electric vehicles refuel as quickly as gasoline cars, while bringing high-level autonomous driving into everyday use.

Taiwan's auto market slowed markedly in 2025. Yet rather than retreat, several automakers used the downturn to recalibrate—strengthening their balance sheets, accelerating transformation efforts, and pushing more decisively into overseas markets.

Whetron Electronics, a Taiwanese specialist in automotive electronic sensing systems, will hold its pre-initial public offering earnings briefing on December 23, 2025, as demand for advanced driver-assistance systems, or ADAS, continues to accelerate worldwide.

Foxtron Inc. has confirmed its acquisition of 100% of Luxgen Motor from Yulon Group for NT$7.876 billion (US$250 million), aiming to solidify its foothold in Taiwan's electric vehicle (EV) market. The deal, announced at a joint press conference on the evening of December 19, marks a significant step in Foxtron's strategic expansion within the local EV sector.

As competitive pressures in China's domestic auto market continue to intensify, Chinese carmakers are rapidly upgrading their overseas expansion strategies. What was once a straightforward export business—selling vehicles abroad—has evolved into what industry executives describe as "Go Global 2.0": a coordinated effort to export entire industrial systems and ecosystems, not just finished products.

China Motor (CMC), Taiwan's leading commercial vehicle manufacturer, officially delivered its first batch of 30 self-developed 3.5-ton electric trucks, the ET35, to HCT Logistics on December 18.

Hotai Motor Co. plans to invest approximately NT$10 billion (US$317 million) in Japan's commercial vehicle market, marking its first international expansion. The company will acquire an 80% stake in five Hino Motors Ltd. subsidiaries, pending regulatory approval. The deal is expected to close in April 2026.

For the global automotive electronics industry, the Chinese market has become a glittering trap: a massive, indispensable arena of innovation that is simultaneously cannibalizing the profit margins of the very companies that sustain it.

The global automotive electronics and electrification (E/E) landscape has shifted from a simple race for technological supremacy to a high-stakes geopolitical arena spanning Europe, the United States, and China. At the heart of this competition lies the lithium battery—both the most valuable and most sensitive component of the modern EV industry.

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.

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.

Passenger vehicle retail sales in China declined by 8% year-over-year in November 2025, the largest drop in nearly a year and the first negative growth period since 2023, according to data from the China Passenger Car Association (CPCA). This downturn signals early signs of a significant industry reshuffle triggered by the withdrawal of longstanding subsidy programs.

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.

Coplus, a Taiwan-based precision automotive parts maker, held its investor briefing on December 8, 2025, where Chairman Baihua Wu outlined two strategic priorities for the company: navigating US tariff changes and accelerating the long-term expansion of its product portfolio.

Vietnamese conglomerate Vingroup has signed a memorandum of understanding with the government of Telangana for a proposed US$3 billion investment to build a multi-sector ecosystem in the southern Indian state, according to Reuters, The Economic Times, and Hindu Business Line.

Ola Electric has started mass deliveries of its S1 Pro+ scooters powered by the indigenously developed 4680 Bharat Cell, making it the first Indian company to fully own both battery pack and cell manufacturing. The rollout marks a major milestone in India's push to strengthen domestic electric vehicle (EV) capabilities.

VinFast plans to invest US$500 million in expanding its manufacturing operations in India, marking the second phase of its previously announced US$2 billion commitment to the country.

US President Donald Trump plans to relax fuel efficiency standards, reducing the average requirement for 2031 vehicles from 50.4 miles per gallon (mpg) set by the Biden administration to 34.5 mpg. The proposal also includes phasing out the current carbon credit trading system by 2028.

As Western automakers struggle with the mounting costs and technical hurdles of AI data infrastructure and cybersecurity, China's new-energy vehicle industry has surged ahead, propelled by rapid advances in electronic and electrical (E/E) architecture and automotive AI.