Automotive Exports December 2025

We are at Automechanika
Dubai 2025
Mehmet Soztutan, Editor-in-Chief
mehmet.soztutan@img.com.tr
Editör
Türkiye aims to set a new record in automotive exports next year,
targeting $43.7 billion as it plans to expand its presence in global
markets and accelerate its green and digital transformation, according
to the 2026 Annual Program. The sector’s share in total manufacturing
exports is projected to reach 16.1% in 2026.
Under the Horizon Europe Ecomobility Project, Türkiye will establish
protocols for secure communication between autonomous or connected
vehicles and central stations and carry out necessary infrastructure work.
Sensor and actuator data of autonomous or connected vehicles will also
be obtained from standard infrastructure for evaluation studies.
Pilot manufacturing of a fuel-cell truck platform will be completed
in 2026, with road tests scheduled to begin the same year. Work
will continue within the Hydrogen-Based Carbon-Neutral Internal
Combustion Engine Development Project, and three hydrogen fuel-cell
tests will be conducted to advance hydrogen fuel-cell technologies and
components.
Türkiye will pursue a circular economy transition in the automotive sector
as part of its green transformation goals. Seventy percent of an R&D
project aimed at recovering materials from end-of-life solar panels and
lithium batteries to produce new products will be completed. So, the
digital and green transformation dominate the agenda more than ever.
This month, we participate in Automechanika Dubai 2025 to convey the
message of the Turkish automotive and auto spare part exporters. The
stars of the automotive world will be meeting at Automechanika Dubai as
usual.
Automechanika Dubai, showcasing the latest global trends, has turned
out to be a remarkable automotive aftermarket platform for the Middle
East and
Africa. The 2025 edition of Innovation4Mobility at Automechanika Dubai
will focus on the next frontier of mobility beyond electrification with a
strong emphasis on regional innovation, data-driven ecosystems, and
sustainable transformation
The Fair which covers the full range of automobile, truck and bus parts,
equipment, components, accessories, tools, and services continues to
bring world renowned manufacturers, suppliers and service providers in
touch with one of the most important growing markets in the world. The
markets targeted by the Fair are widely recognised as the most attractive
in the world in terms of future potential.
Our publications remain at the service of those business people seeking
to increase their share in the increasingly competitive automotive
markets.
We wish lucrative business for all participants.
automotiveexports
automotive exports

08
Auto production rises around
4 percent in January-October
10
Türkiye’s auto, light commercial vehicle
sales surge 9.15% in first 9 months
16
Togg T10F leads Türkiye’s EV market,
enters top 10 overall car sales
26
Auto market expands sharply in
October as EV sales surge
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8
Auto production rises around
4 percent in January-October
December 2025
Türkiye’s total auto production reached 1.16 million
units in the first 10 months of 2025, marking a 3.6
percent increase compared to the same period last
year, the data from the Automotive Manufacturers
Association (OSD) has shown.
Passenger car production, however, declined by 3.4
percent year-on-year to 717,321 units.
Commercial vehicle output showed strong growth,
rising 17 percent overall. Within this category, light
commercial vehicle production surged 20 percent,
while heavy commercial vehicle production slipped by
2 percent.
The industry’s overall capacity utilization rate stood
at 66 percent, with light vehicles (passenger cars and
light commercial vehicles) at 67 percent, trucks at 56
percent and buses and midibuses at 66 percent.
Exports also expanded during the period. The sector’s
exports rose 5 percent in unit terms to 864,809
vehicles. Passenger car exports fell 8.6 percent to
488,383, while commercial vehicle exports jumped 29
percent.
In monetary terms, exports increased 11 percent yearon-year
to $33.5 billion, with passenger car exports
contributing $9.6 billion, up 5.7 percent.
The domestic market maintained its momentum,
growing 10 percent to 1.08 million units in the first
ten months. Passenger car sales rose 11 percent
to 833,382 units. Local vehicles accounted for 30
percent of passenger car sales and 21 percent of light
commercial vehicle sales during the January–October
period.
In October alone, total production rose 8.1 percent
year-on-year to 131,878 units, while passenger car
production declined 6.2 percent to 79,879 units.

Türkiye’s auto, light commercial vehicle
sales surge 9.15% in first 9 months
10
Türkiye’s automobile and light commercial vehicle
sales rose 9.15% to 927,647 units in the January-
September period compared to the same period
last year, with September marking record-breaking
sales figures, according to data from the Automotive
Distributors and Mobility Association (ODMD).
Automobile sales in the first nine months increased
9.98% year-over-year to 742,687 units, while light
commercial vehicle sales climbed 5.92% to 184,960
units, ODMD’s September 2025 data revealed.
September alone witnessed remarkable growth, with
combined automobile and light commercial vehicle
December 2025

sales jumping 25.71% year-over-year to 110,302 units.
Automobile sales surged 26.77% to 88,274 units, while
light commercial vehicle sales grew 21.66% to 22,028
units. The data indicated that both the nine-month
period and September achieved the highest sales
volumes on record.
Lower-tax vehicle segments A, B, and C accounted for
82.3% of the market. C-segment automobiles led the
market with 416,257 units, representing a 56% market
share, followed by B-segment vehicles with 191,817
units, capturing 25.8% of sales.
SUVs emerged as the most preferred body type,
accounting for 62.7% of the market with 465,791 sales.
Sedans followed with a 22.3% share and 165,308 units
sold, while hatchbacks secured 14.1% with 104,461
units. By fuel type, gasoline vehicles led with 345,838
units sold (46.6% market share), followed by hybrid
vehicles at 198,174 units (26.7%), electric vehicles at
133,781 units (18%), diesel at 58,695 units (7.9%), and
LPG vehicles at 6,199 units (0.8%).
Automatic transmission vehicles dominated the market,
accounting for 700,465 units, or 94.3% of sales, while
manual transmission vehicles comprised 42,222 units,
or 5.7% of sales.
Sales of vehicles with engines under 1400cc decreased
by 18.5% to hold a 33.6% market share, while those
with engines between 1400cc and 1600cc fell by
19.1% to a 20.9% share. However, vehicles in the
1600-2000cc range increased by 2.6% to 0.6% of the
market share, and those over 2000cc rose by 24.3% to
0.2% of the market.
Electric vehicle sales demonstrated significant
momentum in the market. Electric automobiles under
160 kilowatts saw sales increase 100.5%, capturing
13.3% market share, while those over 160 kilowatts
surged 203% to claim 4.7% of the market.
Overall, electric vehicle sales reached 133,781 units,
representing 18% of total automobile sales.
In the light commercial vehicle segment, vans remained
the most preferred body type with 74% market share
and 136,801 units sold. Pickup trucks held second
place with a 9.8% share and 18,102 units.
September sales exceeded 10-year averages
significantly, with the overall automobile and light
commercial vehicle market growing 66.5% above
the 10-year September average. Automobile sales
alone surpassed the average by 72.2%, while light
commercial vehicles exceeded it by 47.2%.
12
December 2025

14
December 2025
Turkish car sales top 1M mark
Turkish car sales remained robust in October, jumping
by nearly 20% compared to last year, data from the top
sector association showed, while total sales in the first
10 months broke the 1 million mark.
Sales of passenger cars and light commercial vehicles
in Türkiye rose 19.40% to 116,149 units in October
year-over-year, the Automotive Distributors and
Mobility Association (ODMD) said in a monthly report.
Passenger car sales were up 19.87% to 90,695
vehicles, and light commercial vehicle sales increased
17.78% to 25,454 units.
In the January-October period, sales of passenger cars
and light commercial vehicles increased 10.2% onyear
to 1.04 million units, the association also said.
The latest data affirmed a long-standing trend in sales
despite higher interest rates in recent years. Many
Turks see cars and properties as a shield against
soaring prices and both car and home sales remained
growing this year, even as price pressures began to
ease. The car market alone grew by 61.5% compared
to the 10-year average October sales, according to
the ODMD. At the same time, both electric and hybrid
car sales continued to rise in the first 10 months of the
in first 10 months of year
year. The momentum in total sales, if maintained in
the last two months of the year, could result in a new
annual record, considering that both November and
December sales come in around 100,000 units.
Total passenger and light vehicle sales topped 1.2
million units in both 2023 and 2024.
In October, electric vehicle sales jumped 63.1% yearover-year
to over 14,500 units. Fully electric sales
soared 73% to 14,427 units, while extended range
ones dropped significantly compared to the same
period last year.
Hybrid sales also advanced 34.6% yearly to 21,555
units. Electric cars held a 16% share in the market
and hybrids accounted for 23.8%. Therefore, the data
suggested that electric and hybrid cars held a nearly
40% market share in October.
Looking at 10-month data, the steady rise of electric
and hybrid vehicles in the Turkish market was even
more visible.
EV sales, when including fully electric and extended
range, soared 112.6% compared to the same period
last year to 148,304 units. Hybrid sales rose 73% over
the same period to nearly 220,000 units.

16
Togg T10F leads Türkiye’s EV market,
enters top 10 overall car sales
December 2025
Türkiye’s domestic car brand Togg saw its new sedan
model, the T10F, top the country’s electric vehicle (EV)
sales chart in October, while also breaking into the
overall top 10 car models sold during the month.
According to data compiled by Anadolu Agency
(AA) from the Automotive Distributors and Mobility
Association (ODMD), passenger car sales in Türkiye
rose 10.98% year-on-year to 833,382 units in the
January-October period. Light commercial vehicle
sales climbed 7.23% to 210,414 in the same period,
bringing total sales in the market to 1,043,796 units -
up 10.2% from a year earlier.
In October alone, total car and light commercial vehicle
sales jumped 19.4% from a year ago to 116,149.
Passenger car sales increased 19.87% to 90,695,
while light commercial vehicle sales were up 17.78% to
25,454.
Launched for sale on Sept. 15, the Togg T10F became
Türkiye’s best-selling electric vehicle in October,
recording 2,532 units sold. It also ranked seventh
among all car models sold in the country that month.
The T10F’s closest competitor was Togg’s own SUV
model, the T10X, which sold 1,623 units. They were
followed by KG Mobility (SsangYong) with 1,046 sales,
Volvo with 870, and Kia with 841.
Tesla did not record any sales in Türkiye in October, as
its Model Y was not available for purchase during the
period.
In September, the T10F had ranked second in EV sales
with 1,194 units. Its cumulative sales reached 3,726 by
the end of October.
Volkswagen’s Taigo was the best-selling car model in
Türkiye in October with 4,111 units sold, followed by
the Renault Megane Sedan with 3,866 and the Renault
Clio with 3,850. Togg’s T10F was the only electric
model to enter the top 10 list, while the T10X ranked
15th with 1,623 units.
Togg recently introduced the dual-motor 4More

editions of its T10X and T10F models, combining
enhanced power, safety, comfort and design. The
company said both models, which earned the top fivestar
rating from Euro NCAP, deliver 435 horsepower
and 700 Nm of torque.
Orders for the T10X 4More Obsidian and T10F 4More
versions opened on Oct. 7 via Togg’s digital platform,
Trumore.
Marking its first step into the European market, Togg
began selling its vehicles in Germany in September
and has now completed its first deliveries there.
The company introduced the T10X and T10F models
to German customers during a launch event at its
Stuttgart hub, where the first vehicles were handed
over. This milestone marks the first time Türkiye’s
domestically designed, developed and manufactured
smart vehicles have hit German roads.
Both models had previously made their German debut
at the IAA Mobility fair in Munich on Sept. 8, with
preorders opening on Sept. 29.
17
December 2025

Turkish car market to prosper in 2026
22
December 2025
Türkiye is on the verge of another very active year in
the automotive sector.
Apart from record-breaking exports in the first 10
months of the year, the domestic car market has also
been busy, with sales topping 1 million units from
January to October, up approximately 10% from the
same period last year.
Citizens who are planning to buy a car are now closely
following developments for 2026. Looking at prices,
almost all of the new models are currently priced above
the TL 1 million threshold (about $23,700).
Although car sales have increased compared with the
same period last year, issues such as incentives and
loan announcements can also affect prices.
In 2025, Türkiye’s automotive market saw significant
movement in both new and used vehicles. With only
the Fiat Egea remaining under TL 1 million, prospective
buyers are watching the market with interest, report by
Turkish economy-focused portal Ekonomim said.
The report cited experts predicting that, in 2026, car
prices will generally range between TL 1.2 million and
TL 2 million.
In 2025, the used car supply increased, it further said.
The reduction in demand pressure and issues such
as scrap incentives are among the topics drawing
attention for the 2026 automotive market.
Türkiye’s total passenger car and light commercial
vehicle market grew by 10.2% in January-October
2025 compared with the same period last year,
reaching 1,043,796 units. Passenger car sales rose
10.98% to 833,382 units, while the light commercial
vehicle market grew 7.23% to 210,414 units.
Assessing the 2026 automotive market for Haber
Global, Istanbul Motor Vehicle Dealers Association
Chair Hayrettin Ertemel said: “Considering the main
factors such as costs, exchange rates and taxes, it
does not seem realistic to expect prices to fall. In the
first 11 months of 2025, car prices increased by 15%-
20%. On the other hand, since the price increases
reflected on tags remained below inflation, it is
possible to say that prices declined in real terms.”
“If the parameters determining prices continue in a
similar pattern, we may see a similar price trend in
2026. In other words, similar annual increases are
likely,” he was quoted as saying.
Automotive expert Erol Şahin, on the other hand, said
that 2026 will be an uncertain year for the automotive
sector, citing issues such as taxes and the growing
share of electric vehicles.
“The share of electric vehicles has now risen to about

24
15%-16% of the automotive market. This directly affects
vehicle prices,” he opined. He also suggested that
vehicle loans are the most important factor for consumers
in accessing cars, but that their amounts may not be
sufficient to cover the full cost of vehicles.
“The cheapest cars now range between TL 1.2 million and
TL 2 million. For these vehicles, you can only get a loan of
about 20% of the price, with a 12-month term,” he noted.
Predicting that the average price of the most affordable
cars in 2026 will be around TL 1 million, Şahin added:
“Cars still preserve their investment value. Consumers
continue to view vehicles as an asset that can protect
their savings. This will keep the market active.”
“So we will again face a market above the 1-million
level, but access to cars may become more difficult for
consumers,” he said.
December 2025

26
Auto market expands sharply
in October as EV sales surge
December 2025
According to data released by the Automotive
Distributors and Mobility Association (ODMD) on Nov.
4, Türkiye’s passenger car and light commercial vehicle
market grew 19.4 percent year-on-year in October,
reaching 116,149 units.
This followed a 25.7 percent annual increase to more
than 110,000 units in September.
Passenger car sales in October rose 19.87 percent
from a year earlier to 90,695 units, after climbing 21.7
percent to 22,000 units in the previous month. The light
commercial vehicle market expanded 17.78 percent
to 25,454 units. Electric vehicle sales continued their
rapid ascent. In October, EV sales jumped 63.1 percent
year-on-year to 14,523 units, capturing a 16 percent
share of the total market, up from 11.8 percent in the
same month of last year. From January to October, the
Turkish EV market expanded 112.6 percent compared
with the same period of 2024, reaching 148,304 units.
The share of EVs in total sales rose from 9.3 percent to
17.8 percent in the first nine months of 2025.
Domestic EV brand Togg maintained its strong
momentum, selling 4,155 cars in September and
27,480 units between January and September,
surpassing Tesla’s deliveries of 27,420 vehicles in the
same period. Overall, total vehicle sales in Türkiye in
the first nine months of 2025 increased 10.20 percent
year-on-year to 1,043,796 units. Passenger car sales
rose 10.98 percent to 833,382 units, while the light
commercial vehicle market grew 7.23 percent to
210,414 units.

Number of EVs on Turkish
roads nears 320,000
28
December 2025
Türkiye recorded 319,155 registered electric vehicles
(EVs) by the end of September, according to data
released by the Turkish Statistics Institute (TÜİK) on
Oct. 17. The number of EVs registered in Türkiye
has shown a remarkable rise over the past decade,
transforming from a negligible presence on the roads
to a steadily growing segment of the market.
According to official registration data, there were
virtually no electric cars in the country until 2011, when
just 24 vehicles were recorded. The figure remained
symbolic in the early years, with only 175 in 2012,
353 in 2013, and 412 in 2014. Growth was slow but
consistent, reaching 952 by 2018 and surpassing
1,000 in 2019. Momentum began to build in the 2020s.
By 2020, Türkiye had nearly 2,800 registered EVs,
climbing to 6,267 in 2021 and more than 14,500 in
2022. The pace accelerated further in 2023, when the
number of electric cars quadrupled to 80,043.
The upward trend has continued. In 2024, registrations
more than doubled again to 183,776, and by 2025 the
total reached 319,155. While EVs still represent only a
small share of Türkiye’s overall car fleet — about 1.9
percent of all registered vehicles in 2025 — the rapid
growth highlights both shifting consumer preferences
and the impact of global and domestic policies
encouraging cleaner transport. As of September 2025,
Türkiye had a total of just over 17 million registered
cars, comprising 5.23 million gasoline vehicles, 5.62
million diesel vehicles, 5.2 million LPG vehicles and
602,150 hybrids. While diesel and gasoline vehicles
remain predominant, hybrids and electric vehicles have
seen significant growth compared to previous years.

32
Turkish automotive sector hits
record $34B in exports in 10 months
December 2025
Türkiye’s automotive industry achieved a new best
January-October export performance as sales reached
$34 billion, according to a report.
With a steady momentum in shipments, the domestic
automotive industry, a longtime leader in exports,
marked its highest 10-month performance of all time
despite global uncertainties and rising protectionism.
While global markets closely follow whether the U.S.
will reach agreements with other countries on trade
policies, Türkiye’s automotive sector stood out with its
strong performance during the first 10 months of the
year.
U.S. protectionist customs tariffs continue to pose
challenges for global trade by weakening countries’
positions in commerce.
Amid growing economic concerns and reevaluation
of international relations, Türkiye has succeeded
in maintaining a prominent global position both in
finished vehicle production and automotive supply
manufacturing.
The automotive industry, which achieved $34 billion in
exports in the first 10 months of the year, broke records
for the third consecutive year, further strengthening its
leadership in exports.
Looking at export data, automotive exports stood at
$30.5 billion in 2024, $28.7 billion in 2023 and $25
billion in 2022, covering the same period.
In 2021 and 2020, when the global economy was
still affected by the COVID-19 pandemic, automotive
exports stood at $23.9 billion and $20.1 billion,

respectively, for the January-October period. The
industry’s exports amounted to $25.4 billion in 2019
and $26.3 billion in 2018.
Türkiye’s overall exports rose 3.9% year-over-year
to reach $224.6 billion in the first 10 months of the
year, according to data from the Turkish Exporters’
Assembly (TIM).
In October alone, exports surged 2.2%, reaching $24
billion. At the same time, the automotive exports rose
11.6% year-over-year to $34 billion, accounting for
17.5% of Türkiye’s total exports.
During the first 10 months of the year, Germany was
Türkiye’s largest automotive export market with $5.6
billion, followed by France ($3.9 billion), the United
Kingdom ($3.4 billion), Spain ($2.9 billion) and Italy
($2.7 billion).
In terms of export growth by value, Germany again
ranked first. Automotive exports to Germany increased
by $1.5 billion, followed by Spain ($843.2 million),
Slovenia ($470.5 million), France ($449.4 million) and
Romania ($315.9 million).
By province, northwestern Kocaeli province ranked
first in automotive exports with $10.1 billion during the
January-October period. It was followed by Bursa ($7.4
billion), Istanbul ($7.2 billion), Sakarya ($4 billion) and
Ankara ($1.4 billion).
33
December 2025

34
Spain frontrunner for BYD’s
3rd European plant after
Hungary, Türkiye
December 2025
China’s top automaker BYD is considering Spain as
the leading candidate for its third European car plant,
a report said, as the company looks to expand its
footprint and boost sales across the continent.
A BYD assembly plant, joining two other planned
factories in Hungary and Türkiye, would be a significant
boost for the carmaker that competes with Tesla, and
would also bolster Spain’s aim of becoming a major
hub for electric vehicle production.
Spain is favored by BYD because of its relatively
low manufacturing costs and clean energy network,
Reuters reported, citing two people briefed on the
matter.
While it is known that BYD has been looking for a third
plant to serve the European market, Spain’s emergence
as a frontrunner has been previously unreported.
BYD country manager for Spain and Portugal, Alberto
De Aza, told Reuters last month that Spain would
be an ideal location for further expansion of the
carmaker’s European manufacturing footprint because
of its industrial infrastructure and cheap electricity.
A third source cautioned that the company has
not communicated any final decision and is still
considering other countries besides Spain. A final
decision on the plant, which should come before the
end of the year, will need to be approved by Chinese
regulators. BYD has looked at other countries,
including Germany, though that has been debated
internally because of high labor and energy costs,
Reuters reported in March.

36
BYD’s sales in Europe jumped 280% in the first eight
months of the year from the same period in 2024 after
the automaker began selling plug-in hybrids as well as
fully electric cars.
The carmaker had overhauled its European operations
to boost sales by hiring more managers
and adding dealerships, Reuters
reported in April.
Diplomatic and business ties between
Spain and China have warmed
considerably in recent years. Last year,
Spain abstained on a European Union
vote on tariffs on Chinese-made EVs.
China’s government privately told
automakers to halt investments in
European countries that supported
those tariffs, Reuters reported last year.
Germany voted against the tariffs.
Spain, Europe’s second-largest carproducing
nation, has attracted major
investments, including from Germany’s
Volkswagen and China’s Chery and
CATL, since it announced a 5 billion
euro ($5.8 billion) plan in 2020 to attract
EV and battery manufacturing using EU
pandemic relief funds.
BYD aims to produce all EVs for sale in
Europe locally within three years, which
would help it avoid EU tariffs.
Its planned factory in Hungary is currently under
construction, though sources told Reuters in July that
BYD has pushed back its timeline for mass production
at the plant until next year. Its Turkish plant is due to
open in 2026.
December 2025

Electric and hybrid cars surge as
conventional sales fall
38
December 2025
In Türkiye, sales of gasoline and diesel cars continued
to fall in the first ten months of this year, while electric
and hybrid vehicles surged, reaching a market share of
44.2 percent with 368,033 units sold.
According to data from the Automotive Distributors
and Mobility Association (ODMD), overall car sales
between January and October rose by 10.98 percent
compared to the same period last year, totaling
833,382 units. Light commercial vehicle sales also
increased by 7.23 percent to 210,414.
During this period, 393,399 gasoline cars and 219,729
hybrid cars were sold in in the country. Diesel car sales
stood at 64,801, while LPG-powered cars accounted
for 7,149.
Fully electric car sales reached 146,773. When
extended-range electric vehicles — equipped with a
gasoline generator to charge the battery while driving
— are included, electric car sales rose to 148,304,
representing a 17.8 percent market share. These
extended-range models are classified as “electric”
under customs tariff statistics.
Gasoline car sales fell by 16.6 percent, while diesel
sales dropped by 16 percent. In contrast, LPGpowered
cars sales increased by 37.5 percent, hybrid
sales by 73 percent and fully electric car sales by
an impressive 126.1 percent. Analysts attribute the
decline in diesel sales mainly to global manufacturers
phasing out diesel production, leaving fewer new
models available in the market. The share of gasoline
cars in total sales fell from 62.8 percent last year to
47.2 percent this year. Diesel cars dropped from 10.3
percent to 7.8 percent, while LPG-powered cars held a
0.9 percent share.
Meanwhile, fully electric cars rose from 8.6 percent to
17.6 percent, and hybrids from 16.9 percent to 26.4
percent. Together, electric, extended-range electric and
hybrid cars accounted for 44.2 percent of the market,
meaning four out of every ten cars sold in Türkiye were
powered by alternative technologies.
Within the hybrid segment, plug-in hybrids reached
36,623 sales, securing a 4.4 percent market share
and marking a staggering 693.6 percent increase
compared to the same period last year. In October
alone, 14,427 fully electric cars were sold, representing
a 15.9 percent market share, while hybrid sales
reached 21,555 units, accounting for 23.8 percent of
the market. Homegrown EV manufacturer Togg has
made a strong impact on the domestic market with its
newly launched sedan, the T10F. Introduced on Sept.
15, the model quickly rose to the top of the country’s
EV sales charts in October, securing the number one
spot among electric cars and placing seventh overall
across all vehicle categories. Sales figures highlight
the T10F’s rapid success: 2,532 units were delivered
in just one month. The company’s earlier model, the
T10X, followed with 1,623 sales. Other competitors
trailed behind, including KG Mobility (SsangYong) with
1,046 units, Volvo with 870 and Kia with 841. Tesla,
meanwhile, recorded no sales during the period, as its
Model Y was not available on the Turkish market.

40
Volkswagen to develop own
assisted driving chip in China
December 2025
Germany’s Volkswagen said it would develop an inhouse
assisted driving chip for its business in China
as it seeks to recover from sagging sales in the world’s
largest auto market.
Volkswagen is still the leading foreign group operating
in China but the auto giant’s sales have drooped as
local brands rise. It is also seeking to insulate itself
from global tensions over semiconductors.
The group announced a series of new electric and
hybrid vehicles in April and an assisted driving system
designed specifically for the Chinese market in an
effort to counter that slide.
“We are accelerating and deepening the
implementation of our ‘In China, for China’ strategy --
moving beyond localised production to mastering the
core technologies that shape tomorrow’s mobility,” Ralf
Brandstatter, CEO of Volkswagen Group China, said
in a news release. It is the first time the Volkswagen
Group has developed its own in-house chip of this
sort, a spokesman said. Responsibility for its design
and production will lie with a joint venture between
CARIAD, Volkswagen’s software company, and
Chinese technology company Horizon Robotics.
Smart driving capabilities have emerged as a key
battleground in China’s cut-throat domestic auto
market. Semiconductors have also increasingly
become the target of global trade tensions, in particular
between the United States and China.
Washington has steadily expanded export controls in
recent years, particularly in advanced chips and digital
infrastructure.
European automakers have also been rocked by
a row between China and the Netherlands over
Nexperia chips, which despite being relatively simple
in technology terms are nonetheless crucial as vehicles
rely more on electronics.
Volkswagen’s aim with the new chip is “taking control
of a key technology that will define the future of
intelligent driving”, CEO Oliver Blume said in the news
release.
“This marks the next logical step in our strategy for
outstanding long-term innovation capabilities.”
The chip is expected to be delivered within the next
three to five years, the release said.

Türkiye expanding energy
diversification considerably
42
December 2025
Türkiye has been pursuing a long-term strategy to
diversify its energy supplies and reduce dependence
on single sources, Energy and Natural Resources
Minister Alparslan Bayraktar said.
Bayraktar told a live broadcast that diversification has
been part of Türkiye’s approach since the 1990s, but
recent years have seen a sharp acceleration.
“Many countries are implementing diversification
strategies. You need to diversify supply. Türkiye has
been implementing such a strategy since the 1990s,”
he said. Speaking about President Recep Tayyip
Erdoğan’s recent visit to the United States, Bayraktar
described meetings with U.S. President Donald Trump
as constructive and results-oriented, stressing energy
was a key part of the $100 billion trade volume target
between the two countries. Türkiye, he said, is already
importing liquefied natural gas (LNG) from the U.S.,
which has grown into a leading global producer of oil,
gas and nuclear energy.
“We meet about 11% of our natural gas needs from
the United States,” Bayraktar said, highlighting the
importance of LNG in diversifying supply.
Türkiye began receiving LNG from Algeria and Nigeria
in the 1990s, and in 2016, the government adopted a
new strategy to expand capacity and prepare for the
global LNG boom. Since then, Türkiye has increased its
regasification capacity fivefold, from 30 million to 161
million cubic meters.
“By 2016, Türkiye said there would be massive
LNG globally, and I must be ready for it,” Bayraktar
explained, adding that the expansion of LNG terminals
has made Türkiye less vulnerable to supply shocks.
Bayraktar emphasized that natural gas remains a critical
part of Türkiye’s energy mix, both for households and
industry, and said the government will continue to
seek diverse sources, routes and types of energy to
ensure long-term supply security. Türkiye has limited
oil and natural gas resources, which makes it a major
energy importer vulnerable to fluctuations in the energy
markets. For two decades, it has been incentivizing
investments in renewable power to reduce its high
import bill and insulate itself from geopolitical risks.The
country consumes more than 50 billion cubic meters
of gas every year and relies on a mix of piped gas from
Russia, Azerbaijan and Iran, along with liquefied natural
gas (LNG) imports from various suppliers. Türkiye and
the U.S. signed a Memorandum of Understanding on
Strategic Civil Nuclear Cooperation at the White House.

46
Togg delivers first cars in Germany
after European market debut
December 2025
Türkiye’s electric vehicle manufacturer Togg has
delivered its first cars in Europe, beginning with
Germany—the company’s first international market—
as part of its broader expansion strategy across the
continent. The first deliveries took place in Stuttgart,
known as the capital of Germany’s automotive industry,
where Togg’s European center is based. The event
ushered in the debut of the T10X and T10F smart
models on German roads, both designed, developed,
and produced entirely in Türkiye.
Togg began sales in Germany in September, following
its official launch at the IAA Mobility fair in Munich on
Sept. 8. Preorders opened on Sept. 29, leading to the
first customer deliveries.
According to company officials, Togg is rapidly
expanding its infrastructure in Germany to support the
rollout of its smart vehicles. The first delivery point was
set up in Kelheim, with a new center in Neuss expected
to follow soon. Active service points currently operate
in Berlin, Essen, and Nuremberg, while additional
locations, including Munich, are being prepared.
Test drive and experience centers have also been
established in major German cities such as Cologne,
Berlin, Frankfurt, Munich, and Hamburg. Prospective
buyers can schedule test drives through the company’s
Trumore mobile app, with pop-up stores already open
in Cologne, Hamburg, and Frankfurt.
Togg’s digital platform, Trumore, is now fully
operational in Germany, offering end-to-end digital
services—from ordering and payment to vehicle
management. Users can access route and charging
planning tools as well as personalized in-car
experiences. The company also plans to introduce new
energy solutions in the near future, integrating them
into its growing mobility ecosystem in Europe. Both the
T10X and T10F models have received a five-star safety
rating from Euro NCAP, the independent European car
safety assessment program.
Tax-inclusive prices for the newly launched T10F sedan
model range from €34,295 ($39,777.06) to €48,600,
while the T10X SUV model starts at €34,295 and goes
up to €49,200.

Welcome to Automechanika Dubai 2025
48
The largest international trade show for the automotive
aftermarket industry in the MEA region is ready to
display global automotive industry.
From 9–11 December 2025, the Dubai World Trade
Centre will transform into a global meeting point for
industry leaders, innovators, and professionals driving
the future of the automotive aftermarket.
Automechanika Dubai is unique in the range and depth
of products it offers. No other show in the MEA region
covers the full range of products and services available
in the automotive aftermarket industry. Visitors can
expect to meet exhibitors from over 60 countries who
will showcase their products and services, which are
broadly classified into ten product sections.
Parts & Components
Electrics & Electronics
Connectivity & Autonomous Driving
Accessories & Customising
Tyres & Batteries
Car Wash, Care & Detailing
Oils, Lubricants & Fuels
Diagnostics & Repair
Body & Paint
Digital Solutions & Services
December 2025

Across three days, the show will showcase products
and solutions from every part of the industry, including
parts, components, tyres, batteries, lubricants,
electronics, diagnostics, body & paint, accessories, and
digital technologies. Visitors can also explore international
pavilions, join conferences led by experts, and see live
demonstrations of the latest innovations.
More than an exhibition, Automechanika Dubai 2025 is a
hub for networking, learning, and partnerships, producing
valuable opportunities for business growth across the
MEA region.
Driving the Future: Smarter Systems, Greener Models
& Seamless Mobility
The 2025 edition of Innovation4Mobility at Automechanika
Dubai will explore the next frontier of mobility beyond
electrification with a strong focus on regional innovation,
data-driven ecosystems, and sustainable transformation.
Over two days, the conference will feature keynotes,
panels, and startup showcases addressing themes
such as smart infrastructure, battery tech localization,
predictive diagnostics, cybersecurity, circular mobility, and
platform-driven business models.
Bringing together industry leaders, policymakers, and
disruptors, Innovation4Mobility will serve as a strategic
hub to exchange ideas and spotlight technologies driving
a smarter, cleaner, and more connected mobility future in
the Middle East and beyond.
”Reimagining Mobility: Resilience, Intelligence &
Regional Innovation”
A deeper dive into local relevance, tech crossovers,
business models, and mobility’s economic impact - not
just tech will dominate the agenda.
49
December 2025

50
GM books $1.6B hit on
EV investments amid US policy changes
December 2025
U.S. automotive giant General Motors (GM) said that
it will book a $1.6-billion hit in electric vehicle (EV)
investments following policy changes by the Trump
administration, which effectively slowed down the
adoption of the climate-friendly vehicles in its home
market. The cost impact, which will be included in
the automaker’s third-quarter results, follows moves
by U.S. President Donald Trump’s administration to
eliminate a consumer tax credit for EV purchases and
water down emission rules that aimed to speed EV
adoption in the U.S., the company said in a securities
filing. Following recent government actions, “we expect
the adoption rate of EVs to slow,” said the filing, which
added the company will “reassess our EV capacity and
manufacturing footprint.”
The announcement relates to a rush in investments
greenlighted by GM CEO Mary Barra beginning around
the November 2020 election and presidency of Joe
Biden, who ran on a platform of aggressive policies to
counter climate change.
In January 2021, shortly after Biden was
inaugurated, GM announced a target of having its
cars and trucks emissions-free by 2035.
“General Motors is joining governments and
companies around the globe working to establish
a safer, greener and better world,” Barra said at
the time. Biden’s presidency successfully enacted
significant tax and industrial policies to boost EVs.
Trump is undoing most of it.
The Republican billionaire lambasted Biden’s
climate policies during the 2024 presidential
campaign, winning key swing state Michigan, a U.S.
automaking center where job security worries have
been a serious concern in recent years.
Since the election, GM has emphasized the flexibility
of auto plants that were constructed for both
EVs and conventional gasoline-powered autos,
while announcing plans to lift output of internal
combustion engine autos in line with consumer
demand.

52
BYD delivers first SEALION 7 in Türkiye
after strong local demand
December 2025
The first customer received a 160-kilowatt (kW) rearwheel-drive
SEALION 7 Design in Atlantis grey—a
version developed exclusively for Türkiye—during
a delivery ceremony attended by BYD Global Vice
President Stella Li, BYD Türkiye General Manager
Ismail Ergun, and BYD Europe Türkiye Country
Manager Murphy Ruan.
Li said Türkiye has become one of BYD’s key strategic
markets, noting the company’s intention to tailor its
products to local expectations.
“We are very pleased with the strong interest Turkish
consumers have shown in our brand,” Li said during
the ceremony. “To respond to this demand, we are
developing products specifically for the Turkish market.
Launching and delivering the SEALION 7 here with a
locally tailored version is a source of pride.”
She added that BYD would continue offering
advanced-technology vehicles in Türkiye while closely
following the evolving needs of local consumers.
Ergun said the personal participation of BYD’s
global vice president demonstrated the company’s
commitment to Türkiye and its customers.
He added that the SEALION 7’s launch generated
exceptional interest. “Following our November 5 debut,
we received more than 1,500 orders within a single
week,” he said. “We expect to increase deliveries by
the end of the year to meet this strong demand.”
The SEALION 7 introduces a new dynamic to Türkiye’s
electric SUV market with its design, high equipment
level, and advanced safety standards, Ergun
emphasized.
The SEALION 7 joins BYD’s Ocean Series, following
the Dolphin, Seal and Seal U models, and is offered in
two versions—the Türkiye-specific 160 kW rear-wheeldrive
and the 390 kW all-wheel-drive Excellence trim.
Together with the SEALION 7, BYD’s lineup in Türkiye
now includes the Dolphin, Atto 2, Atto 3, Seal U EV,
Seal U DM-i, Seal, Han and Tang.
The vehicle accelerates from 0 to 100 kilometers per
hour (km/h) in 7.8 seconds and provides a 440 km
driving range under the WLTP standard, powered by a
71.8 kWh battery. Charging options include 11 kW AC
for a full charge in about 7.5 hours, and 150 kW DC
fast charging reaching 30% to 80% in 20 minutes.

Türkiye unveils custom-built
limousine version of its electric SUV
54
December 2025
Acustom-built limousine version of Türkiye’s first
domestic electric car, Togg T10X SUV, made its first
public appearance.
The limousine carried President Recep Tayyip Erdoğan
as he arrived for the ceremony to deliver the first
domestically developed Altay main battle tanks to the
armed forces in Ankara.
The specially produced, extended-wheelbase Togg
drew attention with its elongated body, lack of side
doors, and distinctive blue-colored mirror caps and
daytime running light trims.
The vehicle, described as a one-off prototype by
Togg engineers, features four rows of seats and a fully
panoramic glass roof, giving it a spacious limousinestyle
interior. A presidential seal adorns the front hood,
placed above the electric motor compartment.
According to company officials, the long-wheelbase
Togg is not intended for mass production or sale.
Instead, it was developed exclusively for factory visitor
tours and special demonstrations.
The limousine-style model has been built on an
extended T10X platform.
Similar luxury conversions are rare worldwide, typically
seen in modified Hummer vehicles in the United States
and the United Arab Emirates (UAE), where extended
chassis designs are used for ceremonial or exclusive
purposes. Togg is backed by a consortium of major
groups, including BMC, Zorlu Holding, Anadolu Group
and Turkcell, along with the Union of Chambers and
Commodity Exchanges of Türkiye (TOBB).
Mass production of the T10X commenced in 2022
before orders were launched in March 2023, with
deliveries starting a month later.
The company sold around 30,000 units of T10X in
Türkiye last year, its first full year of deliveries. Its sales
this year through September were up nearly 30% at
around 22,131 units.
The company also plans to enter France and Italy in
the coming period.
T10F became the second-best-selling electric model
in September with 1,194 units sold. Tesla led EV
sales with 1,664 units, and the T10X came in third
with 1,061 units. Besides the SUV and sedan, Togg
will manufacture four other models – a C-hatchback,
B-SUV and B-MPV.
It aims to reach an annual capacity of 100,000 vehicles
before ramping up to 175,000 once its plant in the
northwestern Bursa province reaches full capacity.
The company is already working on the B-segment
SUV model, which it named T8X. It aims to
manufacture 1 million vehicles across the five
segments by 2030.

56
Türkiye’s foreign direct investment
jump 58% in 8 months
December 2025
Türkiye received $10.6 billion in foreign direct
investment (FDI) in the first eight months of the year,
marking a 58% increase from a year ago, data showed.
In August alone, $1.8 billion in FDI flowed into the
country, of which $1.5 billion came in the form of
equity capital, according to the International Investors
Association (YASED).
A further $137 million was recorded through debt
instruments and $202 million through property
purchases by foreign nationals. Investment exits,
valued at around $90 million, partly offset the inflows.
Since 2003, Türkiye has attracted more than $284
billion in total foreign investment.
The information and communications technology
(ICT) sector dominated August’s inflows, accounting
for $1 billion, or 69% of total equity investment. The
wholesale and retail trade sector followed, capturing
a 10% share. Between January and August, the top
three recipient sectors were wholesale and retail trade
($2.5 billion), information and communication ($1.2
billion) and food manufacturing ($1.2 billion).
The European Union remained Türkiye’s largest source
of investment, representing 91% of total inflows in
August and 58% of cumulative FDI since 2003.
Among individual countries, Luxembourg led with 71%
of total FDI in August, followed by the Netherlands
(14%), Switzerland (2%), Azerbaijan (2%) and Ireland
(2%). For the year to date, the largest investors were
the Netherlands ($2.5 billion), Kazakhstan ($1.1 billion)
and Luxembourg ($1.1 billion).

China’s Geely buys 26.4% stake in Renault’s Brazil unit
58
December 2025
French carmaker Renault said it has signed a deal with
Chinese Geely to sell it a 26.4% stake in its Brazilian
subsidiary, thus continuing the strategic cooperation
between the companies.
As a minority shareholder, Geely will have access
to Renault do Brasil’s industrial and commercial
resources, allowing it to accelerate its expansion in
the region’s automotive market. Renault do Brasil will
make Geely Auto-branded vehicles alongside Renault
vehicles at the Ayrton Senna plant in Sao Jose dos
Pinhais in the state of Parana, the French company
said. Following the agreement, Reuters reported that
Renault is in talks with more automakers, including
China’s Chery, to explore partnerships to jointly
produce and sell cars, citing a top executive.
Fabrice Cambolive, Renault Group’s chief growth
officer, told reporters about the talks while announcing
the completion of a deal in Brazil with China’s Geely.
The move underscores how Renault has been
increasingly partnering with other automakers,
especially Chinese ones, in global markets to improve
the efficiency of its factories worldwide and enhance
product competitiveness. Renault signed definitive
agreements to sell Geely 26.4% of its Brazilian
subsidiary, according to a press release. The two are
joining hands in the largest Latin American market,
where BYD has been building a factory and gaining
ground with its affordable pure electric and plug-in
hybrid models.
“This type of partnership is clearly a winning one
because we are expanding access to different
platforms, industrial tools, engineering and a
distribution network,” Cambolive said in the news
conference.
“It does not rule out other deals with other
manufacturers in other markets,” he said, adding
that Chery is one of the automakers Renault is in
contact with to explore similar partnerships, although
no projects have been finalised. Bloomberg News in
October reported Renault’s discussions with Chery to
build cars in South America. As part of the agreement
in Brazil, Geely will have access to Renault’s factory in
Sao Jose dos Pinhais to assemble Geely-branded cars
and distribute them through Renault’s sales network,
while Renault will use Geely’s vehicle architecture to
expand its range to other segments for the Brazilian
market.
Cambolive said the partnership aims to boost the
factory’s utilization rate. It is currently operating at
around 50% of its 400,000-unit annual capacity.
Renault has carmaking factories in about a dozen
countries, including France, Spain and India. It has also
been producing and selling the Grand Koleos developed
on Geely’s platform in South Korea since 2024.

60
Volkswagen logs $1.2B quarterly
loss on tariffs, Porsche woes
December 2025
German carmaker Volkswagen (VW) reported its first
quarterly loss in five years as it continues to struggle
with its subsidiary Porsche and faces a threat from
U.S. tariffs.
The loss in the July-to-September period amounted
to 1.07 billion euros ($1.24 billion) and was the first
suffered by Europe’s biggest carmaker since the
second quarter of 2020, when it was hit by COVID-19.
The 10-brand manufacturer, whose models range from
Skoda to Seat and Audi, warned that U.S. President
Donald Trump’s tariff blitz was costing it five billion
euros on an annual basis.
“The result is much weaker compared to the same
period last year,” Volkswagen finance boss Arno Antlitz
said. “Higher tariffs, adjusting the product strategy at
Porsche and write downs to Porsche’s value cost 7.5
billion euros.”
It is the latest bad news for VW and the wider German
auto industry, and reflects broader problems for
traditional manufacturers in Europe’s struggling top
economy. Beyond tariffs and the slower-than-expected
shift to electric cars, fierce competition in the key
market, China, has hammered German manufacturers
and their suppliers.
Porsche problems
Long the jewel in Volkswagen’s crown, Porsche in
recent years has become a headache for the wider
group amid intense pressure from local competitors in
China and weak demand for electric sports cars that
lack the thrill of noisy petrol engines.
Volkswagen in September warned of a bumper
5.1-billion-euro hit to its core profit for the year after
Porsche cut profit targets and said it would carry
on selling petrol vehicles for longer than previously
planned.
Volkswagen absorbed costs from Porsche’s move and
also wrote down the value of its shares in the Stuttgartbased
sports car maker.
The automotive giant is also dealing with U.S. tariffs on
car exports from the European Union, subject to a tariff
of 15% under an EU-U.S. deal unveiled late July.
That is down from an earlier level of 27.5% but still far
higher than the 2.5% in force before Trump launched
his trade war in April.

62
The carmaker – which has a plant in Tennessee – also
has to grapple with U.S. duties on car parts imported
from outside North America.
Antlitz said Volkswagen had achieved a “creditable”
result, excluding tariff and Porsche-related costs.
“But the burden of tariffs will remain,” he said. “It is not
really appropriate to exclude it from the calculation.”
Despite the net loss, revenues grew by 2.3% to 80.3
billion euros, helped by a slight increase in vehicle
sales globally.
New man at the wheel
Even before Trump unleashed his tariffs, VW was
struggling.
The group struck a deal with unions last December
to cut 35,000 jobs by 2030, mostly at its namesake
brand, as part of wider plans to save 15 billion euros a
year.
Group brands Audi and Porsche have also slashed
thousands of jobs. Porsche told workers in a July
letter that further cost cuts lay ahead, warning that its
business model “no longer works in its current form.”
The firm in October named ex-McLaren boss Michael
Leiters as its new CEO effective Jan. 1, 2026, taking
over from Oliver Blume, who also heads up the wider
Volkswagen Group.
With both companies in crisis, some unions and
investors had criticized Blume’s dual role, accusing him
of being a “part-time boss.”
December 2025

64
BYD’s ‘kei’ EV plans ring alarm
bells for Japan’s car industry
December 2025
Even if it won’t go on sale until the end of next year,
BYD’s Japanese mini-car has already produced buzz
– at least among officials in Tokyo worried about the
challenge from China’s biggest automaker.
The company plans to debut its all-electric “kei” car – a
class of pint-sized, affordable vehicles smaller than a
two-door Mini Cooper – at the Japan Mobility Show
that opens to the public.
The move will make BYD a rare foreign entrant in
the “kei jidosha,” which translates as “light vehicle,”
segment, which accounts for about a third of Japan’s
auto sales and, for decades, has been the almost
exclusive turf of domestic players like Honda and
Suzuki.
BYD has sold just 6,600 of its standard-sized electric
vehicles since entering the Japanese auto market
nearly three years ago, Atsuki Tofukuji, who heads the
company’s passenger car sales business in Japan, told
Reuters in an interview.
“In terms of our initial expectations, our sales in Japan
are missing a zero,” Tofukuji said.
Foreign automakers had just a 6% share of the 3.7
million new passenger cars sold in Japan last year.
But some Japanese government officials and industry
insiders say BYD could pose a threat with an electric
kei car, as consumers are particularly cost-conscious
and there are few ultra-compact EVs. Electric cars are
eligible for subsidies and tax breaks in Japan.
In Japan for long haul
By designing a car specifically for the world’s fourthlargest
auto market, BYD appears to be in Japan for
the long haul and determined to win over the country’s
famously picky consumers.
The effort comes as Chinese automakers scramble to
boost overseas sales amid a brutal price war at home,
taking market share from Japanese automakers in
Southeast Asia.
“Japan’s auto industry is one of the country’s core
industries and is highly competitive,” said Eisuke Mori,
a lawmaker and head of the ruling Liberal Democratic
Party’s parliamentary automobile caucus.
“But when it comes to EVs, Chinese automakers have
been on the rise globally and we have a strong sense
of crisis about that,” he said in a written response to
questions.
Although BYD has yet to pose much of a challenge to

Japanese car companies in the domestic market, the
government was nevertheless paying close attention,
Mori said. His comments were echoed in private by
more than half a dozen government officials and auto
industry insiders, all of whom declined to be identified
because of the sensitivity of the topic.
Some of those individuals were stark in their assessment
of the potential challenges to Japan, with three saying
BYD represented a much-needed wake-up call for
Japanese automakers that have focused primarily on
hybrid technology, while falling behind on EVs.
The decision to sell a kei car came after some BYD
company executives made a stopover in Tokyo in
2023 and saw how prevalent the vehicles were, BYD’s
Tofukuji said.
“They saw how many kei cars were on the roads and
were struck by the sheer variety of body styles. I think
that’s when they really got a sense of the Japanese
market.”
Designed for short trips on narrow roads, kei cars are
largely unavailable outside Japan and can be no more
than 3.4 meters (11 feet) long and 1.48 meters wide
with an engine no larger than 660 cc.
The ultra-compact size – the engine is roughly a third
the size of the Toyota Corolla’s smallest – means
kei cars are sluggish on hills and highways, but can
squeeze into the tightest parking spots.
The size also means lower taxes for drivers. Japan’s
most popular kei model is Honda’s N-Box series,
which starts at around $11,400. Around 200,000 of
the cuboid, four-door, four-seaters were sold last year.
Nissan offers a kei EV, the Sakura, that starts at around
$17,000. Last year, it sold around 23,000, according to
industry data.
BYD believes there is big potential demand for EVs
in Japan as more people move away from petrol cars
and it aims to have a presence in all of Japan’s 47
prefectures by the end of next year, Tofukuji said.
He declined to disclose the expected price of the kei EV.
Status symbol
“For Chinese automakers, being able to sell in Japan
is a kind of status – a sign they’ve become a true car
manufacturer,” said Koji Endo, chief executive analyst
at SBI Securities.
Some government officials said they were concerned
about the challenge posed by BYD. But they said
Japan was unwilling to resort to protectionism, which
would lead to action at the World Trade Organization
(WTO) and retaliatory measures in the Chinese auto
market, the world’s largest and an important one for
Japanese carmakers.
Japan’s new prime minister, Sanae Takaichi, has
previously expressed support for scrapping EV
subsidies, saying they only benefited BYD and Tesla.
The government is considering a temporary freeze on
tax breaks for cars based on emissions, which typically
benefit EV makers, Reuters recently reported.
The EV subsidy scheme was rejigged last year to
take into account factors like the number of charging
stations built by the automaker. As a result, BYD
customers now get a subsidy of 350,000 yen ($2,300),
when previously they were eligible for as much as
850,000 yen.
Making inroads in Japan will likely require BYD to
compete on price, Endo said.
“People buy kei cars because they’re cheap. So BYD
will likely use very strategic pricing at first to gain
market share.”
65
December 2025

68
China to spare some Nexperia chips
from export ban amid supply concerns
December 2025
China announced that it will exempt certain Nexperia
chips from an export ban imposed after a dispute with
Dutch authorities, aiming to ease growing concerns
among European automakers and industrial companies
about potential supply shortages.
Anxiety over chip shortages began when the
Netherlands invoked a Cold War-era law in late
September to effectively take control of Nexperia,
whose parent company Wingtech is backed by the
Chinese government.
China, in response, banned any re-exports of Nexperia
chips to Europe and accused the United States
of meddling in Dutch legal procedures to remove
Nexperia’s Chinese CEO.
Beijing blamed what it said was “the Dutch
government’s improper intervention in the internal
affairs of enterprises” for leading to “the current chaos
in the global supply chain”.
“We will comprehensively consider the actual situation
of enterprises and grant exemptions to exports that
meet the criteria,” a Chinese commerce ministry
spokesperson said in a statement, without offering
specifics.
The resumption of some Nexperia shipments was
part of a trade deal agreed by Chinese President Xi
Jinping and US counterpart Donald Trump after talks
in South Korea, the Wall Street Journal reported, citing
unidentified sources.
Chinese and European Union officials were also
to discuss Nexperia while meeting in Brussels, EU
spokesman Olof Gill had said.
Those talks were “a welcome opportunity for
both sides to update on... the introduction and
implementation of export controls”, Gill said in a
statement. The discussions covered “controls on rare
earth elements introduced or proposed by China, as
well as an update on controls and developments on
the EU side”, he said. The statement did not mention
Nexperia specifically. Nexperia produces relatively
simple technologies such as diodes, voltage regulators
and transistors that are nonetheless crucial as vehicles
increasingly rely on electronics.

Hyundai announces
$86B domestic investment
after US trade deal
Hyundai Motor Group said it will invest 125.2 trillion
won (around $86.4 billion) in the domestic South
Korean market from 2026 to 2030, after Seoul finalized
a trade deal reducing U.S. tariffs on South Korean
autos to 15% from 25%.
That compares with investments by Hyundai Motor
and its group affiliate, Kia Corp, totaling 89.1 trillion
won from 2021 to 2025, according to the group.
South Korean President Lee Jae Myung met with
Hyundai Motor Group Chairperson Euisun Chung and
other business leaders, two days after details of the
trade deal were released, which include South Korea’s
promise to invest $350 billion in U.S. strategic sectors.
“We are well aware of concerns about exports
declining and domestic production shrinking due to
U.S. tariffs of 15%,” Chung said after the meeting.
“We will diversify export markets, increase exports
from domestic factories and more than double auto
exports through new electric-vehicle factories by
2030,” Chung said, adding that the group will also
provide support to auto parts makers hit by President
Donald Trump’s tariffs.
Of Hyundai’s domestic investments, 50.5 trillion won
($35 billion) will be in AI and other future business
opportunities, 48.4 trillion won in research and
development, and 36.2 trillion won on optimising
production facilities and building a skyscraper, the
group said.
70
US tariffs on heavy trucks, buses come into effect
December 2025
Fresh U.S. tariffs on imports of medium- and heavyduty
trucks took effect Nov. 1, although with partial
relief for vehicles entering the country under a key
North America trade agreement.
The 25-percent tariff on trucks, alongside a 10 percent
duty on buses, comes into place after President
Donald Trump’s government launched a Section 232
probe into such imports to gauge their implications on
national security.
The president has tapped such investigations, under
the authority of the Trade Expansion Act of 1962, to
impose tariffs on various categories of goods in efforts
to boost domestic manufacturing and punish countries
deemed to be taking advantage of the United States.
The steel and aluminum sectors have also been hit,
with 50-percent tariffs, as were autos with a 25 percent
duty. However, the latest truck tariffs will not stack on
existing duties applying to steel, aluminum copper,
autos and lumber, the White House said in October.
Trucks will be spared from separate “reciprocal” duties
setting out rates varying by trading partner too.
The American Trucking Associations, representing
some 37,000 companies, urged in May for the Trump
administration to hold off truck tariffs, warning that
lower sales could harm manufacturers, dealers and
motor carriers. The vast majority of U.S. truck imports
come from its immediate neighbors Mexico and
Canada, economists say.