-
Canada Cuts Tariff on Chinese EVs 100%
Jack Hao Canada has agreed to allow a maximum of 49,000 Chinese-made electric vehicles to enter the Canadian market annually at a most-favored-nation tariff rate of 6.1%.
This policy marks Canada’s termination of the 100% additional tariff measure on Chinese electric vehicles that had been in effect since October 2024, shifting instead to a tariff-rate quota system. Carney stated that this move aims to restore normalized levels prior to trade friction, with the relevant volume accounting for less than 3% of Canada’s new vehicle market sales.
High tariffs had caused electric vehicle prices to soar and limited options in the Canadian market. According to Statistics Canada data, new registrations of zero-emission vehicles declined significantly in the third quarter of 2025. This tariff adjustment is expected to bring more affordably priced electric vehicle models to Canadian consumers. It is projected that within five years, over 50% of Chinese electric vehicles imported to Canada will be priced below CAD 35,000 ($25,300 USD), offering consumers low-cost alternatives. Meanwhile, Canada expects that within three years, the agreement will drive Chinese enterprises to establish joint ventures in Canada, promote the development of the domestic electric vehicle supply chain, and create employment opportunities for Canada’s automotive manufacturing industry.
-
Ford Uses Revised Strategy for Success
Aditya Kondejkar Ford Motor Company’s decision to re-enter the Indian market marks one of the most closely watched developments in the auto industry this year. After exiting mass-market operations in 2021, due to persistent losses and an increasingly competitive environment, Ford’s return signals a significant strategic recalibration driven by changing market dynamics, India’s rising manufacturing relevance, and the company’s global EV transformation agenda.
Unlike the last decade—when Ford struggled with scale, cost structures, and a limited product pipeline—its new India plan is built around focused investments, platform sharing, premium positioning, and leveraging India as an export and engineering powerhouse.
Shifting from Mass-Market to Strategic Segments
Ford’s earlier struggle stemmed largely from competing in high-volume, price-sensitive segments dominated by Maruti Suzuki, Hyundai, and later Tata and Kia. The new strategy avoids this path. -
Ford India Revises Strategy for Sustainable Success
Aditya Kondejkar Ford Motor Company’s decision to re-enter the Indian market marks one of the most closely watched developments in the auto industry this year. After exiting mass-market operations in 2021, due to persistent losses and an increasingly competitive environment, Ford’s return signals a significant strategic recalibration driven by changing market dynamics, India’s rising manufacturing relevance, and the company’s global EV transformation agenda.
Unlike the last decade—when Ford struggled with scale, cost structures, and a limited product pipeline—its new India plan is built around focused investments, platform sharing, premium positioning, and leveraging India as an export and engineering powerhouse.
-
Brazil, Colombia Renew 2026 Free Trade Quota
Fabio Ferraresi Brazil and Colombia have agreed to extend for 12 months the bilateral automotive quota allowing duty-free export of up to 50,000 Brazilian vehicles per year. The mechanism, which had expired in September, risked reinstating a 16.1% import tariff on Brazilian ICE and flex-fuel passenger vehicles entering the Colombian market from 2025 onward. From January to September 2024, Colombia remained Brazil’s third-largest automotive export destination, receiving 38,500 units (+55.2% YoY), below but close to the annual quota.
Source: Autodata Read The Article
-
Auto Sector Driven by 2Ws, Stable PV Demand
INDIA REPORT
Aditya Kondejkar India’s auto sector delivered a resilient performance in the first half of FY26 (April–September 2025), supported by healthy two-wheeler volumes, steady passenger-vehicle demand, and a modest recovery in commercial vehicles — even as the industry navigated EV market churn and shifting policy tailwinds.
Two-wheelers continued to underpin volume growth: production and domestic sales surged, with about 10,200,000 (1.02 crore) two-wheelers produced/sold in 1H FY26. This strength was driven by durable rural demand, improved affordability, and strong scooter and motorcycle cycles during the pre-festive and monsoon seasons.
Passenger vehicles showed robustness across the board, with roughly 2.05 million units recorded in the six-month period (Apr–Jun ~1.01m; Jul–Sep ~1.04m). OEMs benefited from a combination of steady urban demand, renewed festive spending and a partial easing of supply constraints. Strong export momentum — India recorded a record H1 export tally — also helped OEM plant utilizations.
-
GST 2.0 Could Be Fiscal Reset for Auto Industry
INDIA REPORT
Aditya Kondejkar The Indian automobile industry has received a significant policy boost with the rollout of GST 2.0, a major change in indirect taxes aimed at restoring affordability and stimulating consumption. The reform, which reduces GST rates on vehicles and components, arrives at a crucial juncture when entry-segment sales, rural demand, and OEM margins have been under pressure.
Scale of reduction and market impact. GST 2.0 lowers the rate on small cars and two-wheelers from 28% to 18%, while standardizing the rate on most auto components at 18% instead of the earlier 18%–28% range. Larger SUVs and luxury models now fall under a simplified 40% composite slab, down from nearly 50% earlier. These changes translate into tangible price cuts—ranging from $750 USD (₹65,000) for hatchbacks to over $3,400.00 USD (₹3 lakh) for premium models—resulting in an estimated 10-percentage-point drop in overall tax burden for the sector. Analysts see this as a long-awaited correction that could lift FY26 passenger-vehicle demand by 8–10%.
TPI
PSR Truck Production Index
Free quarterly global commercial vehicle production report.
Alternative Power Report
The latest EV and power source news including batteries and fuel cells with analysis by PSR experts.
PowerTALK News
Stay informed each month with insights from Power Systems Research’s analysts working around the world as they identify and comment on important news items in the company’s monthly newsletter.
Subscribe View Archive
OE Link™ Offers
Global Coverage
OE Link™ database provides OEM products, both On-Road and Off-Road, in 12 regions.
Current Reports
Download complimentary reports that show the type of information available from Power Systems Research.
PowerTALK News
Stay informed each month with insights from Power Systems Research analysts working around the world as they identify and comment on important news items in the company’s monthly newsletter.
Subscribe