Stellantis NV has officially abandoned plans to build two lithium battery gigafactories in Kaiserslautern, Germany, and Termoli, Italy, the company's CEO, Antonio Filosa, said, following a EUR2.1 billion (US$2.49 billion) asset impairment tied to its ACC joint venture with TotalEnergies and Mercedes‑Benz.

Taiwan and the US concluded an Agreement on Reciprocal Trade (ART) that will reduce tariffs on US-manufactured passenger cars to zero, the Executive Yuan said on February 13. Mercedes‑Benz Taiwan announced price reductions for five US-produced models in line with the agreement.

Taiwan's Ministry of Transportation and Communications (MOTC) said it will remove longstanding import quantity limits on US-spec vehicles, a move officials frame as aligning trade practice with international standards, but that has prompted scrutiny over differing safety inspection regimes.

New Delhi and Washington have established an interim trade deal framework targeting electronics, intellectual property, and supply chains. The Economic Times reports that this move aims to enhance competitiveness and improve supply chain resilience. This agreement follows discussions between Prime Minister Narendra Modi and US President Donald Trump, focusing on reducing trade barriers between the two nations.

Hyundai Motor Group's vehicle brands Hyundai and Kia saw their combined revenue exceed KRW300 trillion (US$208.6 billion) for the first time in 2025, breaking a record high. Even so, the two companies together absorbed as much as KRW7.2 trillion in costs due to US tariffs, leading to a marked decline in profitability.

Ray Wu, CEO of Suntek Motor Group, a leading Taiwanese importer and dealer of luxury brands including Porsche and Skoda, told DIGITIMES that while Taiwan's auto market is expected to outperform in 2026, the company does not view growth as merely a matter of securing larger allocations from overseas manufacturers. Instead, Suntek is pursuing a rolling, quarter-by-quarter operational strategy designed to manage inventory risk—an approach shaped by recent market volatility.

Tesla's latest earnings showed softer vehicle demand but improving margins, while management and analysts focused on the company's accelerating investments in custom chips, AI compute, and robotics as key to sustaining growth across its automotive, autonomy, and energy businesses.

Chinese automaker BYD is reportedly exploring options to expand its presence in India, including local assembly, as demand for its electric vehicles (EVs) continues to rise, according to people familiar with the matter. The company is evaluating semi-knocked-down (SKD) assembly and working to obtain local safety and regulatory approvals for additional models, according to Bloomberg, in order to navigate import quotas.

India and the EU have concluded negotiations on a comprehensive free trade agreement (FTA), marking a major development in bilateral trade relations. The announcement was made on January 27, 2026, at the 16th India–EU Summit in New Delhi by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.

The global bus industry is entering a new phase where competition extends beyond vehicle models to encompass organizational and operational transformation. Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Foxconn Technology Group have announced the establishment of a new, jointly owned bus company, signaling a fundamental restructuring of Fuso's bus business that moves beyond their earlier zero-emission vehicle (ZEV) collaboration, set for August 2025. This marks Foxconn's transformation from parts supplier to vehicle manufacturer—a shift with significant implications for Japan's public transport decarbonization and the broader electric vehicle sector.

A deepening global memory chip shortage is beginning to raise serious concerns within the automotive industry, as surging demand from artificial intelligence (AI) applications increasingly crowds out supply. With software-defined vehicles (SDVs), advanced driver assistance systems (ADAS), and in-vehicle infotainment becoming mainstream, automakers are now facing mounting risks tied to memory availability, pricing, and product design.

Taiwan has obtained a preferential tariff rate of 15% on automotive parts under the US' Section 232 policy, prompting swift action from domestic suppliers to capitalize on improved market access. Industry leaders have intensified efforts to engage US clients, including launching 24-hour hotlines and traveling to the US to negotiate new contracts.

Taiwan's Trade Representative Jen-ni Jenny confirmed that ongoing Taiwan-US trade negotiations have reached a critical point, with the US explicitly pressing for "full market access" for American-made vehicles and advocating that Taiwan adopt a "zero tariff" policy. This development, intended to establish parity in the Taiwan-US trade relationship, has sparked unease within Taiwan's domestic automotive sector about its future viability.

European car manufacturers are confronting a complex geopolitical and economic dilemma that threatens their global competitiveness. Increasing tariffs and unpredictable policies in the US, coupled with aggressive competition from emerging domestic Chinese automakers, are squeezing European firms in their two largest markets. This dual pressure is forcing automakers to seek new growth regions, notably in South America, but political obstacles within Europe risk delaying critical trade agreements.

As Taiwan-US tariff negotiations near finalization, Mercedes-Benz Taiwan signals potential vehicle price reductions on US-made models, reflecting prospective customs duty cuts. The expected adjustments could impact about a quarter of the company's local sales, with broader implications for Taiwan's luxury car market.

The EU's potential reversal of the 2035 ban on new gasoline and diesel vehicles is forcing European automakers to reconsider engine R&D. However, stringent emissions rules and growing Chinese technological capabilities complicate their ability to regain global competitiveness, according to Nikkei Automotive.

At CES 2026 in the US, Nvidia unveiled its open-source vision-language-action (VLA) model series, Alpamayo, signaling a new phase in the development of autonomous driving technologies. The launch has intensified competition among global automakers, which are now ramping up investment and racing to secure computing power centered on VLA architectures.

The automotive electronics industry is undergoing a structural transformation unlike any it has seen before. As artificial intelligence moves from the margins to the core of vehicle design, two of Taiwan's lesser-known industrial champions—HCMF Group and Kinpo Electronics—are deepening a cross-industry partnership aimed at navigating the upheaval. Their strategy rests on two pillars: system integration and a "global-local" manufacturing footprint, designed to withstand volatility in an increasingly fragmented market.

Taiwan's urban mobility market has undergone a significant transformation since 2025, driven by the rising adoption of digital platforms and evolving consumer travel habits. LINE GO, a leading mobility-as-a-service (MaaS) platform, reported its official account surpassing 10 million friends by the end of 2025, underscoring the growing integration of digital services into daily transportation. This expansion highlights stronger demand for shared and diversified mobility solutions across Taiwanese cities.

Hotai Motor Co. officially introduced the All New RAV4 on January 13, 2026, with an initial factory allocation of 30,000 units. Pre-orders have already exceeded 10,000, prompting the company to seek additional quotas to satisfy market demand.

The EU has introduced a minimum price commitment mechanism for Chinese battery electric vehicles (BEVs), fundamentally altering the competitive landscape in Europe. This move shifts the contest from tariff disputes to complex challenges surrounding cost structures and market positioning across various automakers.

The EU has replaced tariffs on Chinese battery electric vehicles (BEVs) with a "minimum price commitment" mechanism, signaling a shift in the ongoing trade dispute from border barriers to deeper market competition. Supply chain analysts warn that Europe's automotive sector faces significant challenges amid US tariff pressures and China's technological and cost advantages in new energy vehicles.

The EU has introduced a minimum price commitment mechanism to address the ongoing tariff dispute with China over battery electric vehicles (BEVs). This shift comes after months of high tariffs failed to curb the growth of Chinese automakers in the European market.

Hotai Motor president Justin Su indicated on January 13 that despite growing interest in US-spec vehicles in Taiwan, the high manufacturing costs of US-made cars limit their market appeal. Hotai will continue prioritizing Japanese imports in the near term.

EV manufacturer Ola Electric has rolled out Ola Shakti, a residential battery energy storage system (BESS), from its gigafactory in the Krishnagiri district of Tamil Nadu, marking the company's formal entry into India's residential energy storage market and an expansion beyond its core automotive business, according to ANI, PV Magazine, and the Economic Times.