Advanced L3–L5 autonomous driving has long been a critical battleground in the technological rivalry between the US and China. Recently, as both nations aim for L5 fully autonomous vehicles, their regulatory approaches have begun to diverge sharply: the US is moving toward deregulation, while China is tightening its oversight.

Vietnamese electric vehicle (EV) maker VinFast is shifting gears toward Asia, accelerating its expansion in the region with new manufacturing plants in India and Indonesia as its US ambitions stall amid rising tariffs and logistical costs.

The US government under President Donald Trump initiated a new round of trade protection policies on April 3, 2025, imposing a 25% tariff on all automobiles produced outside the US and planning to further expand this to the automotive component supply chain starting May 3, 2025. This move has triggered a ripple effect across the global automotive industry, with China, as a major hub for automotive components, being particularly affected.

Cyberattacks have become a growing threat to electric vehicles (EV) whose market penetration is rapidly expanding amid a major transformation of the global transportation industry, cybersecurity experts have warned.

As AI applications in smart vehicles become increasingly widespread, cybersecurity vulnerabilities in connected vehicles are becoming more evident. According to Taiwan-based automotive cybersecurity specialist VicOne, a subsidiary of Trend Micro, the number of automotive vulnerabilities reached a record high in 2024, with over 77% occurring in in-vehicle or onboard systems.

Chinese manufacturers' embrace of DeepSeek for autonomous driving raises questions for global players and their Taiwanese suppliers.

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.