One of the biggest stories in Taiwan's auto market toward the end of 2025 is Foxtron's official announcement to acquire 100% of Luxgen, with the deal expected to close in the first quarter of 2026. This move marks Foxtron's shift from solely product design and development toward vertical integration, gaining full control over its brand and distribution channels—the critical "export gateway."
Stellantis NV has officially abandoned plans to build two lithium battery gigafactories in Kaiserslautern, Germany, and Termoli, Italy, the company's CEO, Antonio Filosa, said, following a EUR2.1 billion (US$2.49 billion) asset impairment tied to its ACC joint venture with TotalEnergies and Mercedes‑Benz.
Taiwan and the US concluded an Agreement on Reciprocal Trade (ART) that will reduce tariffs on US-manufactured passenger cars to zero, the Executive Yuan said on February 13. Mercedes‑Benz Taiwan announced price reductions for five US-produced models in line with the agreement.
Tesla Taiwan reiterated that prices for models imported from the US will not be adjusted until Taiwanese government regulations are clarified and confirmed. It said there are no current plans to move production for Germany-imported models.
Taiwan's Executive Yuan announced that US-made vehicles will face zero tariffs and no import quantity restrictions after a trade agreement with the US. Automotive industry representatives warned that the move will create opportunities for imports while posing challenges for domestically produced and European-spec models.
Taiwan's Ministry of Transportation and Communications (MOTC) said it will remove longstanding import quantity limits on US-spec vehicles, a move officials frame as aligning trade practice with international standards, but that has prompted scrutiny over differing safety inspection regimes.
The European Commission plans to unveil its "localization ratio" policy by late February 2026 to shape Europe's manufacturing sovereignty. Yet Stellantis's abrupt halt to construction of ACC's lithium battery gigafactories in Germany and Italy has injected immediate uncertainty into that agenda.
As the European Union-China trade dispute over battery electric vehicles (BEVs) drags on, the EU is on track to replace punitive tariffs of up to 35% with a "minimum price commitment" mechanism starting in January 2026. Volkswagen Group has become the first automaker to formally engage with the new approach, applying the pricing scheme to its Cupra Tavascan model produced in Anhui, China—an early indication of how European manufacturers may adapt to the EU's evolving trade defense strategy.
BYD plans to intensify its push into the German market in 2026 by expanding its dealer network and implementing steep price cuts to target more than 50,000 annual vehicle sales and overtake SAIC MG as the leading Chinese automotive brand in Europe.
The first wave of Chinese electric vehicles is expected to enter the Canadian market in February 2026 under a new trade arrangement. But alongside the arrival of lower-cost cars comes a surge of anxiety in Western capitals over data security, remote-control capabilities, and the geopolitical risks embedded in connected vehicles.
South Korea is moving to domestically produce key components for electric vehicle (EV) fast chargers, as Chinese-made power modules account for more than 90% of those installed in the country, according to a Hankyung report.
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