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Jun 15
China's new EV rules push European luxury PHEVs to the exit

European luxury automakers are pulling back from China's plug-in hybrid vehicle (PHEV) market after Beijing tightened eligibility requirements for new-energy vehicle incentives starting in 2026. The policy raised the minimum all-electric range for tax incentives from 43 kilometers to 100 kilometers. The threshold sidelined many European PHEV models and prompted a shift in market strategy, according to executives and foreign media reports.

Western Europe's auto industry is facing a deeper relocation shock, with passenger car and light commercial vehicle production projected to shrink by about one-third between 2015 and 2030 under pressure from slower-than-expected automotive electronics and electrification progress, geopolitics, trade tensions, and the shift toward localized manufacturing.

Tesla Taiwan announced on June 16 that it formally submitted application documents for its Full Self-Driving (Supervised) system to Taiwan's Vehicle Safety Certification Center and said it will work with the Ministry of Transportation and Communications to begin the regulatory review process. The filing covers an assisted-driving package that Tesla emphasized requires active driver supervision and remains classified as a Level 2 driver-assistance system.

Contemporary Amperex Technology Ltd. announced it would soon begin production at its new Hungary lithium battery plant, a facility with an annual capacity of up to 100 GWh that executives said will be the largest battery factory in Europe. The announcement highlighted a widening gap between Europe's domestic cell output and rising imports, as automakers and specialist makers lack enough local mass-production capacity to meet regional electric vehicle demand.

The European Commission proposed an Industrial Acceleration Act to curb foreign direct investment that it says could threaten domestic industry and jobs, and the draft rule prompted Chinese electric vehicle and battery makers to accelerate plans to secure plants in Europe before the law takes effect. The framework would require regulatory approval for investments by firms with more than 40% global market share and for deals above EUR100 million (US$112.10 million), and it set conditions including joint ventures, foreign ownership caps, intellectual property licensing to EU entities, and prioritizing local supply chains.

India sees rising global tech investment as Meta, Reliance and Anthropic deepen AI ties, while EV firms expand, Starlink faces delays, and semiconductor and tablet markets show steady structural growth.

Tsang Yow is preparing to broaden its manufacturing footprint in Malaysia, a move that could help global semiconductor supply chains become more regional, resilient, and tariff-proof. The drivetrain systems maker expects trial production at the new plant before the end of 2026, as demand tied to artificial intelligence and advanced chips reshapes sourcing patterns worldwide.
Taiwanese cathode materials maker Aleees has disclosed an expansion plan to meet North American demand for lithium iron phosphate precursor materials. The move highlights Tesla's broader push to localize its battery supply chain, reduce exposure to China-linked technology and materials risks, and secure upstream capacity for electric vehicle production worldwide.

During a panel discussion between executives and research experts from Bosch, Infineon, Rohm Semiconductor, Nexperia, Wolfspeed, and Omdia at PCIM Europe 2026, one reality was made clear: frictionless, globalized chip manufacturing is ending. While the conversation reflected industry enthusiasm for new applications such as AI servers and industrial motor drives, it was tempered by macroeconomic realities of international trade protectionism, regional resilience mandates, and aggressive tariffs.

Shin-Etsu Chemical plans to build a new rare earth production facility in Fukui Prefecture, aiming to expand domestic smelting capacity and reduce Japan's reliance on China for materials critical to electric vehicle and semiconductor manufacturing equipment, according to Nikkei and Kyodo News.

As electric vehicles (EVs) become increasingly common on Chinese roads, concerns over their safety—particularly battery-related risks—have come under growing scrutiny.
From SK On-linked exports to Tata Agratas buildouts, South Korean equipment suppliers are increasingly supplying full battery production lines in India as the market shifts from planning to early-stage manufacturing.