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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.
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These Drivers Boost Two-Wheeler Market
Aditya Kondejkar India’s two-wheeler market has re-entered a phase of strong recovery, marking one of the most encouraging periods for the segment in the post-pandemic cycle.
After an extended stretch of muted retail activity—driven by rural income pressure, price inflation, and delayed replacements—the current upswing reflects deeper, broad-based improvements in consumer sentiment. The revival is being powered by a mix of macroeconomic stabilization, rural liquidity improvements, urban premiumization, and targeted OEM strategies.
Source: Times of India Read The Article
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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. -
Delays in Agricultural Equipment Delivery Worsen
Akihiro Komuro The increase in 2025 rice prices has provided Japanese farmers with more financial flexibility, leading to a surge in demand for upgrades to agricultural machinery. However, farmers are reporting longer wait times for machinery orders, sometimes up to a year. They are expressing concerns such as, “We can’t plan next season’s operations,” and “If delivery is delayed until next year, can we really count it as an expense for this year?”
Many small- and medium-sized farms had delayed replacing machinery due to prolonged low rice prices, opting instead to repair old equipment or purchase used machinery. The 2025 rice harvest, however, saw more farmers gain financial leeway, increasing the demand for replacing or purchasing new machinery.
While agricultural machinery manufacturers have been increasing production of high-efficiency models, such as smart farm equipment, targeting large-scale agricultural corporations, the supply-demand balance has shifted. This has created a situation in which supply cannot keep pace with the sudden surge in demand.
Source: JA.com
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EU-US Trade Deal Threatens European Production
Emiliano Marzoli The EU-US trade agreement is facing intense criticism from European policymakers and industry leaders who deem it unbalanced, unfair, and a “significant policy mistake.” The persistence of high US tariffs and mounting non-tariff barriers are severely hurting Europe’s export-oriented industrial sector. Experts warn the deal has cornered the EU, increasing its dependency on critical raw materials and semiconductors.
Specifically, US Section 232 tariffs on steel and aluminium derivatives are crippling the machinery sector with complex compliance rules. Failure to comply can trigger punitive tariffs up to 200%, prompting some firms to halt US exports entirely and leading to a sharp drop in sales (e.g., German machinery exports have fallen 18.5%). EU lawmakers are now pushing for amendments, including sunset clauses and safeguards, amid concerns that the current framework is unsustainable.
Source: Euractiv Read The Article
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EPA Won’t Delay 2027 NOx Rule, Plans Changes
Chris Fisher The U.S. Environmental Protection Agency is moving forward with the 2027 timeline for its heavy-duty NOx rule—currently set to take effect with the 2027 model year—but says changes are in store.
The American Trucking Associations (ATA), National Tank Truck Carriers, Truckload Carriers Association, and 49 state trucking associations in August penned a letter to EPA, asking the regulator to push implementation to 2031, citing “substantial compliance costs and operational burdens at a time when the trucking industry is already contending with historically difficult market conditions.”
Administrator Lee Zeldin in March announced that the EPA was reevaluating the Biden-era 2022 Heavy-Duty Engine and Vehicle rule that regulates oxides of nitrogen (NOx) and other emissions beginning with Model Year 2027.
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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.
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Trucking Recovery To Be Driven by Supply Side?
Chris Fisher The signs of a freight recovery that appeared early this year are gone, replaced by a tough market where recovery will have to come from a supply-side correction, American Trucking Associations’ Chief Economist Bob Costello said at ATA’s 2025 Management Conference & Exhibition in San Diego.
Costello delivered a blunt and sobering economic warning: new tariffs, persistent stagflation, and a slowing labor market have created “absolutely unsustainable” conditions for many carriers, and the only way out, at least near-term, is to erase capacity from the highway.
“It’s not easy to talk about because it’s people’s livelihoods, but it’s a necessary evil,” Costello said, noting that freight demand is unlikely to improve anytime soon. “This has got to be a supply-driven change in the market.”
The current 18% effective tariff rate, nearly six times higher than it was during the first Trump administration, is a level not seen since the 1930s. Costello warned that the industry is only in the “bottom of the second or top of the third inning” of feeling the impact. “Any benefits of putting tariffs on foreign goods… are years in the future, but the cost hits much quicker,” he said.
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