2025-10-19
President Trump is threatening new tariffs (at 100%), after China introduced new restrictions on exports of rare earths and related technology.
Analysts say the export controls were an attempt to boost China’s leverage in trade talks with the United States, but Trump now says he may call off a planned meeting with Chinese leader Xi Jinping later this month
European carmakers sold 38% more electric cars in the first seven months of this year, ensuring that all but Mercedes-Benz are on track to comply with the EU’s 2025–27 emission targets, new T&E research finds
The report suggests that the two-year extension of the targets allowed carmakers to take the foot off the gas and will lead to 2 million fewer electric cars being sold between 2025 and 2027
2025-09-19
In recent weeks, the US has expanded its 50% tariff on steel and aluminum to over 400 derivative products, creating a new, complex trade landscape with the EU. This goes beyond raw materials and now includes a wide array of manufactured goods. The EU has a new deal with the US, which introduces a 15% tariff ceiling on a large portion of European exports, including strategic sectors like vehicles. However, the 50% metal tariffs override this, a development that has caused alarm in Europe’s industrial sectors. The deal is a “first step,” with both sides still working out details, but the high metal tariffs remain a source of significant uncertainty and a point of contention.
Sources: Read This Article Read This Article
2025-09-13
How things have changed. Less than a year ago the industry was gearing up for a huge 2026 class 8 truck pre-buy ahead of the phase 3 GHG emission regulations that would add significant cost to the price of a truck. Road freight was expected to rebound after the post covid freight recession, and the heavy truck replacement cycle was expected to begin. OEMs filled dealer lots in anticipation of strong demand starting in early to mid-2025 and lasting through all of 2026.
As a result of very strong freight shipments and supply chain disruptions during the Covid era, fleets were purchasing as many trucks as possible which resulted in very high truck sales from 2022 – 2024. This resulted in truck overcapacity within the market.
The Ministry of Economy, Trade and Industry says it will support the development of an industry-wide system for sharing information on the degradation status of EV batteries. Toyota and Honda will provide battery-related data to used car dealers, insurance companies and others. The aim is to prevent the export of used EVs overseas and enable the domestic utilization of batteries containing critical minerals.
Currently, battery degradation is difficult to assess, resulting in low trade-in prices for used EVs in the domestic market. The fact that approximately 80% were exported overseas was a cause for concern.
The September 2025 GST Council meeting introduced sweeping tax revisions that significantly lower GST rates across multiple vehicle and farm equipment categories. Tractors and their components now attract a 5% rate (from 12% for standard tractors, and from 18% for parts), while small cars, two-wheelers (up to 350cc), three-wheelers, buses, and certain commercial vehicles are enjoying reduced GST from 28% to 18%.
These changes are expected to improve affordability, stimulate demand (especially in rural and semi-urban areas), boost manufacturing and ancillary industries, and lead to job growth across the value chain.
Source: The Times of India. Read The Link
2025-08-26
India is preparing for one of its biggest tax reforms in recent years, targeting the Goods and Services Tax (GST) structure. If approved, the proposal will slash GST on small cars and two-wheelers from 28% to 18% and reduce GST on insurance premiums to between 5% and zero. The change, expected around Diwali, has the potential to reshape production planning and sales strategies for automobile manufacturers.
Source: Reuters. Read The Article
Impact on Small Cars and Two-Wheelers. Small cars and two-wheelers have traditionally been the backbone of India’s automobile industry, serving middle-class buyers who are highly price sensitive. However, in recent years, growth in these categories has slowed as buyers shifted toward SUVs, which now account for nearly half of passenger vehicle sales. By lowering taxes, the government aims to make small cars and two-wheelers more affordable, correcting the imbalance in demand and giving OEMs in these categories a much-needed boost.
2025-08-16
Vietnam, a country known for its large number of motorcycles, is experiencing controversy over its electric vehicle policy. The policy bans gasoline-powered motorcycles in certain areas of Hanoi, the capital, and has caused a stir. Honda, which holds an 80% share of the local motorcycle market, must rethink its strategy because most of its models run on gasoline. This sudden policy change could also disrupt daily life for residents.
In July, the Vietnamese government outlined bold measures to regulate gasoline-powered motorcycles in “Prime Ministerial Directive No. 20.” Starting in July 2026, operating gasoline-powered motorcycles within the Inner Ring Road in Hanoi will be banned. The Inner Ring Road spans over seven kilometers and includes the city center, home to government offices, the Japanese embassy, and the historic Old Quarter, a popular tourist destination.
The South Korean government has reached an agreement with the United States regarding tariff negotiations. Mutual and automobile tariffs will be reduced to 15%, which is the same rate as those of Japan and the European Union (EU).
According to the Korea Trade and Investment Promotion Agency (KOTRA), automobiles are South Korea’s leading export to the United States. Exports to the United States account for over 50% of South Korea’s total automobile exports. The South Korean government prioritized reducing automobile tariffs and engaged in negotiations with the United States.
In July, the Trump administration proposed a draft rule rolling back the Greenhouse Gas Phase 3 rule, among the last of – if not the biggest – looming Biden-era emissions regulations facing the trucking industry.
The proposal was announced jointly with Environmental Protection Agency Administrator (EPA) Lee Zeldin’s call to revoke the Endangerment Finding that has allowed presidential administrations to regulate greenhouse gases since 2009.
The repeal of greenhouse gas regulations is a long road that includes a lengthy rulemaking process and likely numerous legal challenges.
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