China's passenger vehicle market posted its sharpest slowdown in years in the first half of 2026, with private passenger car sales falling 20% year on year, according to the China Passenger Car Association. The slide has pushed exports from a growth driver to the main support for automakers, while also exposing the sector to growing geopolitical risk.
Semiconductor suppliers have begun rolling out one to two rounds of price increases and tighter allocations in the first half of 2026 as demand from GenAI, geopolitical tensions and inflation continue to reshape the market. Automakers have been watching closely for signs of a repeat of the pandemic-era auto chip shortage, but supply-chain sources said production has so far remained stable.
Hotai Leasing said on July 15 that Taiwan's auto market is expected to return gradually to normal growth in 2026 after tariff uncertainty, vehicle shortages, and tight financing pressured demand in 2025. The company also said younger consumers are increasingly shifting from car ownership to on-demand rental models, signaling a broader change in how vehicles are used in Taiwan.
The US electric vehicle market showed signs of stabilizing in the second quarter of 2026 after federal clean-vehicle tax credits expired in September 2025, although sales remained well below year-earlier levels.
South Korea is accelerating efforts to build an advanced air mobility industry, but the sector is still struggling to produce a workable aircraft body. As US and Chinese rivals move faster toward certification and trial operations, Korea Aerospace Industries (KAI) and Hyundai Motor Group have moved to deepen cooperation on a joint development plan.
Nfore Technology is set to list on Taiwan's emerging stock board on July 22, betting that demand for connected-car systems, smart cockpits, and vehicle software will keep rising as automakers compress development cycles and look for more integrated suppliers. The company plans to increase software licensing and integration services.
Nvidia unveiled a series of new partnerships in Japan on July 16, 2026, highlighting the growing adoption of AI across manufacturing, robotics, automotive, healthcare and data center infrastructure. The announcements coincided with CEO Jensen Huang's visit to Japan, where the company showcased its latest physical AI technologies and deepened collaborations with several of the country's leading industrial groups.
Gotion High-Tech said its first-half earnings are set to rise sharply, a result that could matter for battery investors and electric-vehicle supply chains worldwide. The Chinese maker cited stronger sales, product upgrades, overseas expansion, and gains from stock investments, while warning the figures are still preliminary and unaudited.
Foxconn recently displayed its Model A and Model B electric vehicles in Tokyo, as the Taiwanese manufacturer stepped further into Japan's EV market. The vehicles were shown for the first time in 2026 at the Japan Taiwan Expo, which was organized by Japan's Ministry of Economic Affairs and executed by TAITRA.
Semiconductor supply chains remain tight, and Taiwan power device suppliers say the automotive market, after two years of inventory digestion, is now building up extra stock to avoid shortages. Rebounding demand from 3C end markets is also expected to support revenue in the second half of 2026.
US regulators are considering dropping steering-wheel requirements for fully driverless vehicles, while China is moving a mandatory national safety standard for Level 3 and Level 4 automated driving through the approval process. Suppliers say the changes could accelerate the commercial rollout of robotaxis.
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