General Motors reported seven consecutive profitable quarters in China in its second quarter 2026 results, even as the market remains defined by an intense price war that has pressured European, US, Japanese and South Korean automakers. The results showed that GM's early restructuring in China helped it preserve earnings by shifting away from scale and toward a more defensive operating model.
Mercedes-Benz, BMW and Audi have been cutting prices in China since early 2026 as inventory rose and the premium market shifted toward new energy vehicles led by Chinese brands. The German luxury trio, often referred to as BBA, has faced increasing pressure to use discounts and dealer incentives to protect sales momentum through 2026.
Aluminum substitution for copper gained momentum in 2026 as elevated raw material costs and cost-cutting pressure spread across the auto, power and appliance sectors. The shift was driven by geopolitical tensions and the view that copper prices had little room for a sharp decline.
China's new energy vehicle (NEV) supply chain has risen rapidly, with an operating model that differs sharply from the century-old mainstream automakers in Europe, the US, Japan, and South Korea. A quality issue triggered by GAC Aion's use of CALB's LFP batteries has revived discussions of its past disputes with CATL. Across the industry, the long-running tug of war between Chinese automakers and dominant battery suppliers has continued to deepen the low-margin, even loss-making, dilemma facing carmakers.
As the global electric vehicle (EV) market enters a growth adjustment phase, the auto industry is shifting from "electrification" toward "intelligence," while AI agents move rapidly from the cloud to end devices. Qualcomm says the end devices with which future AI agents will mainly interact include about 6 billion smartphones, 2 billion AI wearables, 2 billion PCs, and 500 million connected cars, underscoring how vehicles are becoming a key gateway to AI services.
US efforts to restrict Chinese technology from connected vehicles are expanding beyond hardware and software sourcing, as proposed legislation introduces ownership thresholds that could affect even automakers headquartered outside China.
SuperAlloy Industrial is broadening its business beyond forged aluminum wheels, with recycled aluminum and semiconductor parts emerging as new growth drivers. The shift could matter for global customers watching supply chains, low-carbon materials, and semiconductor equipment costs, as the company works to secure certifications, diversify sourcing, and expand production capacity.
Hisense outlined a broader AI strategy at its global partner conference in New York, saying it will expand beyond home appliances into semiconductors, smart energy, laser displays, and automotive electronics. The Chinese consumer electronics maker said the plan is designed to widen its AI value chain, strengthen global brand management, and improve user experience and operations.
South Korea's EcoPro BM said it aims to begin mass production of sulfide-based solid electrolytes, a core material for all-solid-state batteries, as early as 2027, laying out a roadmap to supply the full slate of materials the next-generation cells will require. The plan was disclosed at a corporate briefing in Yeouido, Seoul, on July 16 and formalized in a roadmap announcement on July 19.
PG Union is counting on new vehicle launches to navigate a weakening Taiwan auto market in the second half of 2026, after demand in the first seven months fell short of industry expectations.
BMW Group has appointed Benjamin Nagel as managing director of BMW Group's importer markets in Hong Kong, Macau and Taiwan, effective Sept. 1, 2026. He will succeed Raymond Tan Chor Ann, who will become managing director and CEO of BMW Group Malaysia.
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