localized production

XPeng to License Tech to Overseas Automakers Beyond Volkswagen as Services & Other Gross Margin Hits 75.1%

XPeng plans to provide technology licensing to overseas automakers beyond Volkswagen, covering electrical and electronic architecture, cockpit systems, Turing AI chips, and intelligent driving software; potential partners also include software developers and component suppliers. Its first model under the collaboration with Volkswagen, ID.UNYX 08, entered mass production in March 2026, taking 24 months. In the second quarter of 2026, XPeng's services and other revenue nearly doubled, with gross margin rising to 75.1%, while automotive gross margin fell to 12.1%; cumulative overseas sales exceeded 100,000 units, and it plans to expand technology licensing into Robotaxi and embodied intelligence fields.

54827 days ago

EU Advances Two Auto Trade Tracks: Chinese Hybrid Limits, UK-EU EV Tariffs Delayed Three Years

In September 2026, the EU combined pressure and buffering in its auto trade with China. The EU asked China to voluntarily limit hybrid vehicle exports, aiming to cap their European share at about 15%, while the share of Chinese-brand PHEVs has already exceeded one-third. The EU said last year's goods trade deficit with China reached 360.6 billion euros and widened by another 9% in the first half of this year. Due to insufficient domestic battery capacity, the EU proposed postponing UK-EU electric vehicle tariffs and rules of origin until 2027 and investing 3 billion euros to boost battery capacity. Neither track has yet been implemented, and Chinese automakers in Europe face constraints from share management and tightening localization rules.

72827 days ago

Chinese Brands Hold 20% of UK Car Market; Nissan Executive Says UK May Need Tariffs on Chinese Cars

According to Bloomberg, Nissan executive Massimiliano Messina said that if the UK wants equal treatment under EU rules of origin, it may need to impose trade tariffs on Chinese cars. Chinese brands currently account for 20% of UK market sales, and the UK has not yet followed the EU in imposing tariffs on Chinese electric vehicles, while the EU's "made in the EU" rules could exclude UK production from subsidies. Nissan previously announced a £170 million investment to produce a hybrid SUV at its Sunderland plant. This policy gap and concerns about circumvention will affect Chinese automakers' access to the European market and their localization plans.

32128 days ago

Leapmotor Advances European Localization: B10 Pre-Production in Spain, B03X Launched in Italy at €19,900

In September 2026, Leapmotor began pre-production of the B10 compact battery-electric SUV at Stellantis's Zaragoza plant in Spain, using local content to avoid EU tariffs; at the same time, it launched the B03X small electric SUV in Italy at 19,900 euros to enter Europe's entry-level market. European BEV registrations in August reached 202,833 units, up 54.2% year on year, with a 30.5% market share. Chinese automakers' European localization paths are diverging: BYD tends to build multiple bases itself, while Leapmotor leverages Stellantis's production capacity.

45528 days ago

BYD May Join China-U.S. Summit Business Delegation; Overseas Signals Awaited

People familiar with the matter say BYD may be included in the Chinese corporate delegation for the China-US summit, but this has not yet been officially confirmed. In the European market, BEV registrations in 16 core markets reached 202,800 in August, up 54.2% year on year, with market share rising to 30.5%; cumulative registrations in the first eight months exceeded 1.67 million. Leapmotor is pre-producing the B10 at Stellantis's Zaragoza plant in Spain, using local content to circumvent EU tariffs; BYD plans to build three vehicle assembly plants and one battery plant in Europe, with trade policies and export channels adjusted in tandem.

40528 days ago

Volkswagen Exports China-Made Cars to Africa, GM May Follow as Capacity Allocation Shifts

The decline in China's light vehicle demand is driving multinational automakers to adjust their global production capacity allocation. On September 11, FAW-Volkswagen launched sales in Madagascar, becoming the first multinational automaker to export China-made vehicles to Africa. In August, BEV registrations in 16 core European markets reached 202,833 units, up 54.2% year on year, with their share rising to 30.5%. BYD plans to build three vehicle plants and one battery plant in Europe, while Leapmotor uses Stellantis's Spanish plant for localized production to avoid tariffs. The UK faces pressure from EU tariffs and rules of origin, and Nissan, McLaren, and Yokohama are simultaneously adjusting capacity and supply chains.

41129 days ago

Europe BEV Penetration Rises to 30.5%, BYD Plans Three Vehicle and One Battery Plant in Europe

In August, BEV registrations in 16 core European markets reached 202,833 units, up 54.2% year on year, with a 30.5% share; cumulative registrations in the first eight months exceeded 1.67 million units, up 33.1% year on year. BYD has made clear that in the long term it needs to build three vehicle plants and one battery plant in Europe, is starting its Hungarian plant and plans to finalize a second site by the end of the year, preferring acquisition and conversion, with Spain and France as priorities. Leapmotor is pre-producing the B10 at Stellantis's Spanish plant and has pushed down to 19,900 euros with the B03X, as Chinese automakers advance localized production while jockeying over tariff rules in parallel.

35629 days ago

US Presses Mexico to Tighten USMCA Origin Rules; AI Hardware Could Spill Over Into Auto Supply Chain

The United States is pressuring Mexico in negotiations to revise the US-Mexico-Canada Agreement, planning new rules of origin for AI hardware such as chips and servers to limit the share of components from outside North America and prevent Chinese companies from using Mexico as a route to evade tariffs. The rules would reference the automotive sector's 75% North American component threshold for tariff exemption and could spill over into automotive intelligence segments such as automotive chips. In the first half of this year, Mexico exported $83 billion of AI data center servers, 94% to the United States, up more than 170% year on year. Mexico has agreed to raise tariffs on China but opposes mandatory US-made components. Negotiations are expected to begin as early as next week in Washington.

34729 days ago

Li Auto i9, Arcfox T7 and Fang Cheng Bao S launch same week as charging and smart driving take focus

On September 16, 2026, the Li i9, Arcfox Alpha T7, and Fang Cheng Bao Formula S were launched in the same week, with starting prices of RMB 369,800, RMB 132,800, and RMB 189,900, respectively, covering a large flagship battery-electric SUV, a mid-size family SUV, and a mid-to-large battery-electric sedan. The three cars respectively use space, chassis, and hardware, the downward extension of Huawei's intelligent driving, and a 900 km range plus 5-minute flash charging as selling points, reflecting competition among Chinese new energy vehicle makers in energy replenishment, intelligent driving, and by-wire chassis, and providing a product foundation for overseas expansion.

46629 days ago

Renault-Geely Expand Brazil Investment as Maserati Weighs Huawei, JAC Tie-Up

In September 2025, Renault and Geely announced an additional EUR 319 million investment in Brazil through a joint venture, with their total investment in Brazil from 2025 to 2027 reaching EUR 899 million, giving Geely access to Renault's existing plants and dealer network. In the same period, reports said Maserati planned to cooperate with Huawei and JAC to develop two electric vehicles, adopting an SKD model with body-in-white from Hefei and assembly in Italy; the brand's global shipments in 2025 were less than 8,000 units, with an adjusted operating loss of EUR 198 million. Both paths point to a combination of technology export and localized production capacity.

33530 days ago

Trump: Not Opposed to Chinese Automakers Building U.S. Plants, Opposes Mexico-Made Cars Exported to U.S.

According to Reuters, on September 11 Trump said he did not oppose Chinese automakers building factories in the US, provided they hire American workers, but opposed producing finished vehicles in Mexico and re-exporting them to the US, and denied allowing Chinese cars to be sold in the US. US regulations in early 2025 effectively prohibit Chinese automakers from selling or producing passenger vehicles in the US, with tariffs on Chinese electric vehicles exceeding 100%; the Alliance for Automotive Innovation is pushing Congress for a permanent ban, hoping to pass it by the end of December. US-Mexico negotiations are planned to be reached before the November 2026 midterm elections, with tariffs, local content ratios and Chinese companies' investment in Mexico becoming variables, and both North American paths for Chinese automakers facing uncertainty.

55831 days ago

Chery Acquires Nissan's South Africa Plant: Another Milestone in Chinese OEMs' Africa Layout

Chery officially acquired Nissan's South Africa plant, marking an important capacity layout for Chinese OEMs in Africa. The plant will provide Chery with localized production for South Africa and southern African markets, reducing tariff and logistics costs.

38462 days ago