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Quick Summary Europe’s new car registrations fell 3.5% in January France and Germany led the decline EV sales rose 14% , plug-in hybrids jumped nearly 30% Chinese brands now account for  ~11% of electrified car sales Overall Market: Growth Streak Ends European new-vehicle registrations dropped to  961,382 units in January , breaking a six-month growth streak, according to the European Automobile Manufacturers’ Association. Biggest drags: Germany  (Europe’s largest car market, ~22% share) France Meanwhile: Sales rose in the  UK and Italy Weak consumer confidence, high car prices and rising unemployment — especially in Germany — are weighing on demand. EVs Remain the Bright Spot Despite the broader decline, electrified vehicles continued gaining traction: Fully electric vehicles (EVs): +14% YoY Plug-in hybrids: +~30% YoY EV sales grew strongly in: Germany Italy Spain France In the UK, hybrid sales surged nearly 50%, though battery-only EVs remained flat. Key takeaway: ...

Quick Summary BYD has lost over US$60 billion in market value  since May amid a sharp sell-off China EV demand is cooling faster than expected , with subsidies fading Rising battery and chip costs are crushing margins Investors fear widespread earnings downgrades  across the sector What’s Happening Shares of  BYD Co  have come under heavy pressure, with Hong Kong-listed stock down about  7% this week  following weak sales data. The decline extends a months-long sell-off that has erased  more than US$60 billion  in market capitalisation. The rout has spilled over to other Chinese EV names, amplifying concerns over the sector’s  profitability and growth outlook . Demand Is Cooling — Fast Investors were already bracing for slower growth in 2026 as  government subsidies were reduced , but the pace of the slowdown has surprised the market. BYD January domestic sales:   109,569 units ,  ~50% lower YoY XPeng : Deliveries  down ov...

Key Takeaway:  U.S. President Donald Trump signaled a softer stance toward Canada in tariff negotiations but gave no firm commitment on the future of the US-Mexico-Canada Agreement (USMCA), keeping trade uncertainty elevated ahead of the 2026 review. Overview U.S. President  Donald Trump  on Tuesday said he intends to treat  Canada “fairly”  in talks over U.S. tariffs on Canadian goods but stopped short of endorsing the current  USMCA  trade pact. “I think they are going to walk away very happy,” Trump told reporters ahead of a meeting with Canadian Prime Minister  Mark Carney  at the White House. Carney, in Washington for the second time in five months, faces growing domestic pressure to resolve tariffs on steel, autos, and other key exports. Progress but No Breakthrough Canadian Trade Minister  Dominic LeBlanc  described the meeting as “positive and substantive” but said no deal was imminent. “I am happy because we have momentum n...

Key Takeaway:  Tesla’s newly launched “standard” trims for the Model 3 and Model Y came in higher than investors hoped, triggering a sell-off as markets priced in softer sales and no major innovation surprise. Market Reaction: Sell the News Tesla (TSLA.US) closed  4.45% lower , while leveraged bull ETF  TSLL  fell  8.83% , and bear ETF  TSLQ  gained  8.96% after the EV maker revealed lower-priced versions of its best-selling vehicles. Wall Street expected  deeper cuts or brand-new models , but the new trims — while cheaper — stayed closer to  $40,000 than $30,000 , failing to reignite the “mass-market” enthusiasm investors were hoping for. “We view the announcements as a big disappointment,” said CFRA analyst Garrett Nelson, citing likely sales declines in Q4. New Prices: Lower, but Not Low Enough Tesla rebranded its entry-level options as “ standard ” trims: Model Y Standard:  US$39,990 (previously ~US$45,000) Model 3 Standard: ...

The White House has announced that  all medium- and heavy-duty trucks imported into the U.S. will face a 25% tariff starting Nov 1 , marking a major escalation in President  Donald Trump’s trade protection strategy  aimed at supporting domestic manufacturers. The move — justified on  national security grounds  — targets imports of delivery trucks, buses, and semi-trailers from key trading partners including  Mexico, Canada, Japan, Germany, and Finland , all of which are U.S. allies. Trump said the tariffs are designed to protect U.S. truckmakers such as  Paccar’s Peterbilt and Kenworth  as well as  Daimler Truck’s Freightliner , which he described as “vital to America’s industrial strength.” Key Details Effective date:  November 1, 2025 Tariff rate:  25% on all medium- and heavy-duty truck imports Top import sources:  Mexico, Canada, Japan, Germany, Finland Affected firms:  Stellantis (Ram), Daimler Truck, Volvo Group, Pac...

 Strong Market Debut Chinese automaker  Chery Automobile  surged  11.2%  in its first day of trading on the  Hong Kong Stock Exchange  Thursday, after raising  US$1.2 billion  in the city’s second-largest IPO this year. The stock opened at  HK$34.20 , compared with the offer price of  HK$30.75 , while the  Hang Seng Index  gained 0.1%. IPO Demand and Valuation Chery sold  297.4 million shares  at the top end of its HK$27.75–HK$30.75 range, giving the company a market value of nearly  US$23 billion . Institutional tranche oversubscribed  11.6 times Retail tranche covered an exceptional  308 times The strong demand underscores investor appetite for new energy and smart vehicle plays. Cornerstone Support Almost half of the offering was taken up by cornerstone investors, who subscribed for  US$587 million  worth of stock. Notable buyers included: China’s Enterprise Mixed-Ownership Reform Fund...

 Key Takeaways Deal Size:  Chery Automobile targets up to  HK$9.15 billion (US$1.2 billion)  in Hong Kong IPO, the city’s biggest listing this year. Pricing & Timeline:  Offering 297.4m shares at HK$27.75–HK$30.75; final pricing Sept 24, trading to start Sept 25. Investor Backing:  Cornerstone investors committed up to  US$587m , boosting confidence in demand. Use of Proceeds:  35% allocated to  R&D  across passenger vehicle models; 25% to develop  next-gen vehicles within 3 years. Strategic Expansion:  Chery accelerating entry into Europe, with new SUV launches in the UK under Chery, Omoda, and Jaecoo brands. IPO Context The deal marks Hong Kong’s largest IPO in 2025, standing out in a subdued capital-raising year dominated by secondary listings. By comparison, battery giant CATL’s May offering raised US$4.6b, setting the regional benchmark. Strategic Growth Plans Chery is positioning itself as a rising player in the...

BMW AG reported a dip in profitability for the second quarter as  U.S. tariffs  and  weaker sales in China  pressured earnings. The German luxury carmaker’s automotive operating margin slipped to  5.4% , slightly above analyst expectations but down from previous levels. Key Points: Tariff Impact:  President Donald Trump’s trade war is expected to shave  1.25 percentage points  off BMW’s 2025 margins. China Slump:  Increasing competition from domestic EV makers like BYD is squeezing BMW’s market share and pricing in its largest market. Shares:  Fell as much as 2.1% in Frankfurt Thursday but remain up  6.2% year-to-date . Outlook: BMW maintained its  full-year auto margin guidance of at least 5% , making it one of the few European automakers not cutting forecasts this season. Porsche, Volkswagen, and Mercedes-Benz have all downgraded outlooks amid trade-related costs. The company plans to counter tariff effects with cost-saving m...

Ford Motor Co. said its 2025 profits will take a sharp hit as President Donald Trump’s escalating tariffs add billions in costs, underscoring how U.S. trade policy is disrupting the global auto industry. Tariff Impact: Ford now expects a  US$2 billion tariff bill  this year,  US$500 million higher  than previously estimated. The company cited  steel and aluminum tariffs doubling to 50%  and extended duties aimed at curbing fentanyl imports as key factors driving costs up. CEO Jim Farley said the tariffs feel “long term,” warning Ford’s competitiveness is at risk compared with Japanese automakers after the U.S.-Japan trade deal lowered Japan’s tariff rate to 15%. Financial Outlook: Ford forecast a  36% drop in adjusted EBIT for the full year . Second-quarter adjusted earnings came in at  37 cents per share , topping Wall Street’s 33-cent estimate. Adjusted EBIT for Q2 was  US$2.1 billion , also beating expectations. Business Segment Performanc...

LKQ Corp. stock plunged 17.8% , making it the  worst-performing stock in the S&P 500 on Thursday , after the automotive parts and services provider delivered  disappointing earnings and slashed its 2025 outlook . Key Financial Results: Adjusted EPS : 87 cents –  Missed  estimates of 92 cents –  Down 11%  year-over-year Revenue : $3.64 billion – Slightly  beat  expectations of $3.62 billion Parts & Services Comparable Revenue :  -3.4%  vs. Q2 2024 2025 Outlook Cut: New EPS Guidance : $3.00–$3.30 – Previously: $3.40–$3.70 Organic Revenue Forecast for Parts & Services : – Now expected to  decline 1.5% to 3.5% – Previously forecasted as  flat to +2% What’s Dragging LKQ Down? Fewer vehicle repairs  due to: Higher insurance deductibles Declining used car prices Increased repair costs Lower insurance coverage rates Economic slowdown in Europe Tariff uncertainty in North America These factors have  reduced the num...

Hyundai Motor  posted a  16% drop in Q2 operating profit , hit by rising  U.S. tariffs  on vehicles and auto parts. The company warned that the financial pressure from tariffs will intensify in Q3, especially as it awaits clarity on trade negotiations with the U.S. Q2 Financial Highlights Operating Profit:  ₩3.6 trillion (~$2.64B) Down from ₩4.28T YoY Slightly above analyst consensus (₩3.5T, LSEG SmartEstimate) Revenue:  ₩48.3 trillion +7% YoY Beat consensus of ₩47T Tariff Impact (Q2):  ₩828 billion (~$606M) Tariff Pressure Mounts Hyundai said  U.S. tariffs are costing more and will weigh heavier in Q3 . Current tariff:  25% on Korean vehicles Hopes for reduction to match  Japan’s new 15% rate , but  no guarantee  yet. Talks with U.S. Treasury delayed , raising more uncertainty. Market Exposure & Strategy 40%+ of Hyundai’s revenue  comes from the U.S. ~66% of U.S. sales  are from imported vehicles. Hyundai  k...

 Key Expectations Ahead of July 23 Earnings Tesla is set to release its  Q2 FY2025 earnings  after market close on  July 23 , with investors closely watching whether  energy storage growth  and  margin improvements  can  offset declining automotive sales . Snapshot Estimates: Metric Q2 2025E YoY Change Revenue $22.36B ↓ 12.3% EPS $0.32 ↓ 23.4% 4 Key Things to Watch 1️⃣  Vehicle Deliveries & Competition Q2 Deliveries:  384,122 vehicles (↓13.5% YoY; ↑14% QoQ) Q2 Production:  410,244 vehicles Challenge:  Tesla’s  EV market share is eroding , with  GM’s share growing to 12.9%  in H1 2025. 🔧 Outlook hinges on whether Tesla can hit  1M+ deliveries in 2H25  and exceed 2024’s 1.79M total. 2️⃣  Automotive Gross Margin Under Pressure Q1 2025:  16.3% , down from 18.3% in Q2 2024 Q2 2025 expected:  ~16.4% Margins remain under strain from pricing pressures and rising competition, though the...

With a July 9 deadline looming, the European Union and United States are racing to reach a breakthrough in high-stakes trade negotiations that could shape the future of transatlantic commerce. Central to the discussions: steep tariffs that threaten to hit nearly all EU exports to the US, particularly  automobiles, car parts, steel, and aluminum . While recent talks in Washington yielded what officials described as “technical progress,” the ultimate decision still hinges on  President Trump’s willingness to compromise . His administration’s proposed 50% blanket tariffs—part of a broader push to reshore manufacturing and fund tax cuts—have triggered resistance across EU capitals. Automakers in the Crosshairs European carmakers, especially those like  Volkswagen, BMW, and Mercedes-Benz , are among the most exposed. The EU is pushing hard for an “ offsets rule ” that would reduce or eliminate tariffs for companies that  invest in manufacturing facilities in the US . Whil...

Tesla Inc.  announced the recall of  694,304 vehicles  in the United States on Friday due to a  tire pressure monitoring system (TPMS) issue  that may fail to alert drivers to low tire pressure. Key Details 1. Recall Scope Affected Models : Model 3 ,  Model Y , and  Cybertruck  vehicles. Issue : The  TPMS warning light  may not stay illuminated between drive cycles, potentially causing drivers to unknowingly operate vehicles with  improperly inflated tires , increasing the risk of a crash. 2. Resolution Tesla will address the issue with an  over-the-air (OTA) software update , a hallmark of the company’s approach to recalls. Tesla Recall Trends 1. 2024 Recall Statistics Tesla vehicles accounted for  21% of all US recalls  in the first three quarters of the year, according to  BizzyCar . Most recalls were resolved through  OTA software updates , avoiding the need for physical repairs. 2. September Quarter Rec...

The Trump transition team has proposed scrapping a federal requirement for reporting crashes involving autonomous vehicles—a move that would benefit Tesla, one of the most prominent developers of self-driving technology. Here's what you need to know: The Proposal The transition team has recommended removing the National Highway Traffic Safety Administration’s (NHTSA) crash-reporting rule, which requires automakers to disclose accidents involving advanced driver-assistance systems. The proposal aims to reduce what the team calls "excessive" data collection. Tesla’s Stake Tesla, which has reported the majority of crashes under this rule, strongly opposes the requirement. The company argues that the data unfairly singles it out due to its robust crash-reporting capabilities, making it appear responsible for an outsized number of incidents. What’s at Risk? Safety Oversight : NHTSA officials say the data is critical for identifying patterns and ensuring the safety of autonomou...