The US electric vehicle market is losing momentum as policy shifts under President Donald Trump reshape incentives and supply chains. While battery electric vehicle (BEV) sales continue to grow, S&P Global Mobility forecasts a slower pace, extending the deceleration that began in 2024. Hybrid electric vehicles (HEVs) are emerging as the preferred choice for consumers concerned about charging infrastructure limitations, particularly amid economic uncertainty.
Escalating trade tensions under President Trump's new tariff regime are forcing Tesla to recalibrate its China strategy, with deeper Baidu partnerships emerging as a crucial lifeline. The electric vehicle (EV) maker faces growing data restrictions as Chinese regulations prevent its 2 million vehicles from transmitting information back to the US for driving systems training, while US policy simultaneously blocks AI software training in China—effectively crippling Tesla's Full Self-Driving (FSD) capabilities in the world's largest auto market.
The global auto industry is in flux, reshaped by advances in automotive electronics and electrification alongside the rise of Chinese EV makers. Traditional supply chains in Europe, the US, Japan, and South Korea are under pressure, while trade barriers add to the turbulence. Amid the sector's restructuring, the Foxconn Group has emerged as a wildcard in merger discussions, elevating Taiwan's presence on the global stage.
Electric vehicle sales have fluctuated across key markets like Europe, the US, and China, but technological advancements continue. A divide is emerging between legacy automakers and startups over design philosophies. TUV Sud evaluations indicate that companies like Tesla and certain Chinese manufacturers prioritize software-driven designs, enhancing connectivity but often at the expense of structural optimization.
Tesla is facing mounting challenges, from slumping demand for EVs to setbacks in AI-driven self-driving technology. While former US President Donald Trump has pledged to buy a Tesla, opinions remain split on whether his support offers relief or adds to the turmoil.
VeChain has integrated its EVearn application with Tesla's latest API, extending compatibility to all Tesla models worldwide. The move enhances data transparency, introduces decentralized sustainability tracking, and allows owners to earn rewards for periodic charging. By enabling EVs to generate income, VeChain aligns with Tesla's broader vision of sustainability.
Sanyang Motor (SYM) introduced its first 2025 model, the TTLBT, on February 24, marking a major milestone as the first domestically produced motorcycle in Taiwan equipped with built-in Apple CarPlay. This launch signals SYM's entry into a new era of smart vehicle transformation.
The fight in China's auto market has shifted from electrification to intelligent driving, as leading new energy vehicle (NEV) maker BYD makes intelligent driving a standard feature in its entry-level vehicle models at no extra cost, drawing in its competitors and triggering intense competition in the domestic market.
China's automakers are turning to DeepSeek's large language model (LLM) to power next-generation smart cockpits, signaling a new era of AI-driven vehicle intelligence, according to industry sources.
Apple's grand vision for CarPlay 2.0, unveiled at WWDC 2022, aimed to dominate vehicle interfaces by integrating across multiple screens and controlling key functions—potentially sidelining traditional dashboards. The announcement rattled the auto industry, sparking fears that CarPlay could become a Trojan horse, encroaching on automakers' turf. At the time, 98% of new US vehicles supported CarPlay, and nearly 80% of buyers preferred it.
The Alliance for Automotive Innovation, composed of General Motors (GM), Toyota, Volkswagen, and others, has recently appealed to a US court to overturn a regulation set by the National Highway Traffic Safety Administration (NHTSA) during the Biden administration. This regulation mandates that by 2029, all new cars in the US must be equipped with Automatic Emergency Braking (AEB) systems. As Biden's ban constrained Chinese companies, this offered opportunities for Taiwanese manufacturers.
With CES 2025 just concluded, DIGITIMES hosted the "2025 CES Insights: Analyzing New Trends in AI Applications" forum on January 14, providing exclusive updates and insights from the show.
In recent years, CES has become a platform for automotive and display technology, with smart and electric vehicles stealing the spotlight. However, CES 2025 marked a shift, with fewer automotive brands present—Mercedes-Benz among the absentees.
DIGITIMES' analysis of the electrification sector at CES 2025 reveals four transformative areas reshaping the automotive industry: EV product innovation, smart charging technologies, ecosystem integration, and battery advancements.
Honda aims to double its hybrid electric vehicle (HEV) sales to 1.3 million units annually by 2030, introducing its next-generation "e:HEV" system for smaller, more efficient, and profitable models. The move targets compliance with stricter emissions standards set to take effect in 2025 while addressing rising demand in key markets.
Ensilience, a subsidiary of the Yuen Foong Yu (YFY) Group, announced on December 26 a partnership with Shin-Shin Bus to launch a groundbreaking "Smart Charging and Storage System Application for Virtual Power Plant Platform" project. This collaboration is Taiwan's first initiative to aggregate electric vehicle (EV) charging stations, integrate energy storage systems, and offer services via Taiwan Power Company's (Taipower) trading platform.
The European Union has imposed anti-subsidy tariffs on Chinese battery electric vehicles (BEVs), reaching nearly 50%, forcing NIO to consider aligning its prices with luxury automakers like Porsche. NIO CEO William Li indicated the move is unavoidable as the company grapples with rising costs and dwindling incentives.
China's automotive sector is witnessing a strategic shift from new energy vehicles to intelligent driving technology in 2024. At the forefront of this transformation is Huawei, whose advanced driving systems, powered by its revitalized self-developed chips, are gaining significant market traction. Leading this momentum is AITO, a key Huawei partner, which has posted record sales of new energy vehicles this year.
The Inflation Reduction Act (IRA), aimed at bolstering renewable energy and electric vehicles, has drawn sharp criticism from Donald Trump, who dismissed it as a "green new scam." While Trump contemplates a White House return, China's decades-long investment in green industries is poised to deliver significant benefits by 2025, marking its shift away from oil dependency.
China's electric vehicle (EV) sector sparked to life in 2014, marked by the emergence of pioneering startups like NIO, Li Auto, and XPeng Motors. In the five years that followed, over 60 new players entered the market, while 400 companies registered without ever producing a single vehicle.
The automotive industry faces unprecedented upheaval as traditional manufacturers from Europe, the US, Japan, and South Korea confront economic headwinds and weakening electric vehicle demand. Meanwhile, Chinese rivals leverage aggressive pricing strategies and technological innovation to outmaneuver global competitors, forcing established players to reimagine their futures.
Tesla's Model 3 has hit a roadblock in Germany's prestigious TÜV safety rankings, while Honda's Jazz demonstrates exceptional reliability in the latest assessment. The 2025 TÜV report, analyzing over 10.2 million vehicle inspections across 228 models between mid-2023 and mid-2024, reveals significant challenges for the American EV maker.
China's 4S dealership model, once a cash cow in the early 2000s, is unraveling under mounting pressure. The sector, which peaked around 2017, has been hit hard by fierce price wars and a market pivot toward domestic new energy vehicles (NEVs). From 2020 to 2024, over 10,000 dealerships are expected to shut down, with losses accelerating annually, according to the China Automobile Dealers Association (CADA).
Tesla plans to launch its Full Self-Driving (FSD) technology in China by early 2025, though regulatory approval remains uncertain. Domestic automakers are intensifying efforts to showcase their tech, with Xiaomi demonstrating automated parking on its SU7 EV. However, reports of parking mishaps have surfaced, prompting Xiaomi to cover repairs and offer compensation, though the actual number of incidents is unclear amid fierce market competition.
