What major events shaped the global auto industry this week?EV Sales in 37 Countries Hit Monthly Record HighsAccording to Nikkei, soaring fuel prices driven by conflict in the Middle East and rising ownership costs pushed electric vehicle sales to monthly records in 37 countries during March or April. Consumers are flocking to EVs as a cheaper alternative.Image Source: BYDAs purchase subsidies phased out in multiple nations, EV sales had previously softened. But the energy crisis has reshaped consumer choices, dramatically boosting the appeal of new-energy vehicles. This marks a turning point where global EV adoption is shifting from policy-driven incentives to organic market demand.Data from S&P Global Mobility shows that among the 150 countries tracked, 28 nations—including Australia and the UK—saw March EV sales hit all-time highs, while nine others, including Brazil and the Philippines, set records in April.Across March and April combined, 91% of countries posted year-over-year sales growth. It’s the first time since April 2023 that the share of countries with rising EV sales has topped 90%.In South Korea, which relies heavily on crude oil imports from the Middle East, cumulative EV sales for March and April surged 140% year-on-year to top 80,000 units. The penetration rate for new EVs jumped 14 percentage points to 26%.Southeast Asia’s EV sales climbed 40% to 90,000 units, capturing a 16% share of the local new car market. Meanwhile, the EU shook off its previous slump, with sales rising 40%.In China, sales slipped 8% year-on-year to 1.33 million units in March and April, weighed down by the rollback of purchase tax incentives since January. Yet, as demand for the overall auto market softened, the market share of new-energy vehicles actually rose 5 percentage points to 42%.In the U.S., EV sales plunged 20% over the two months following the halt of relevant purchase subsidies last September.Dragged down by the slowdown in China and the U.S., global EV sales grew just 8% in March and April. However, the remaining 148 countries saw their combined sales soar 50%, pushing the global EV penetration rate to a record 12%.Thirty-eight countries have now surpassed the 10% threshold for new EV penetration, while 28 have crossed the 16% mark—a level widely viewed as the critical tipping point for mass adoption.Japan, which uses subsidies to offset domestic fuel prices, saw EV sales rise 50% in March and April. The gain was partly driven by updated subsidy policies implemented in January, yet new-energy vehicles still account for just 2% of the country’s new car market.The International Energy Agency (IEA) noted in a May 20 report that the consumer shift triggered by this energy crisis is likely to continue reshaping the global automotive landscape for years to come.Gasgoo Commentary: Volatile energy prices are reshaping consumer behavior. The cost of ownership has replaced policy subsidies as the core driver of market adoption, signaling that the global new-energy vehicle sector has officially entered a new cycle of market-driven penetration.Chery Plans to Build Cars at Nissan's UK PlantNissan recently disclosed that it is in deep talks with Chery to produce vehicles at the Japanese automaker’s Sunderland plant in the UK. The two companies have signed a non-binding memorandum of understanding, under which Chery’s UK subsidiary would take over one of the factory’s two production lines.Image Source: Nissan UKNissan stated in a release that if the deal proceeds, Chery will officially begin production at Sunderland in the fiscal year starting April 2027. The companies have not yet specified which models will be built, though industry insiders expect Chery to focus on right-hand-drive models tailored for the UK market.The Sunderland plant currently produces the Nissan Leaf electric hatchback and the Qashqai SUV, among other models for the European market. While its designed capacity exceeds 500,000 vehicles, utilization has slumped in recent years, with actual output reaching just 273,174 units in 2025. Nissan announced cost-cutting measures in May to stem losses in Europe, planning to consolidate all production onto the other line at Sunderland. New CEO Ivan Espinosa has outlined a strategy where, dragged down by persistent European losses, Nissan will no longer develop or manufacture dedicated models solely for the European market.After entering the UK market in 2024 with its Jaecoo and Omoda brands, Chery rapidly gained market share. Data from market research firms shows Chery captured a 6% share in the UK during the first four months of 2026, surpassing Ford, Toyota, and Nissan. Notably, the Jaecoo X7 compact SUV topped the UK passenger car sales chart in March.Chery and Nissan have already collaborated on production in Europe and other regions. Chery took over Nissan’s Barcelona factory to resume production of the Ebro brand through semi-knocked-down assembly. In January of this year, Chery finalized an agreement to acquire Nissan’s vehicle assembly plant in Rosslyn, South Africa.Gasgoo Commentary: Nissan is contracting European capacity to cut losses, while bringing in Chery to revive the factory—a pragmatic move by a traditional giant to "lighten assets." It also signals that Chinese automakers are moving beyond simple exports to deeply embedding themselves into Europe’s local production ecosystem, leveraging product strength and operational efficiency.Rheinmetall Sells Auto Business to Aequita for €350 MillionGerman defense giant Rheinmetall has finalized the sale of its Power Systems automotive division to focus on its core defense business. Munich-based investment firm Aequita will acquire the unit for a provisional purchase price of €350 million (approximately $406.8 million). The agreement covers all equity in Rheinmetall’s Power Systems division. The deal, pending regulatory approval, is expected to close in the fourth quarter of this year.Image Source: RheinmetallRheinmetall stated that following the divestment, it will fully transform into a dedicated defense company. The company also revealed that after booking a €350 million asset impairment at the end of last year, the spinoff will result in an additional non-cash impairment loss of roughly €200 million.Rheinmetall noted that it agreed with labor unions earlier this year to preserve all German plants and staff within the sold auto division for three years following the deal’s closing. Aequita also confirmed it will retain all 6,250 current employees of Rheinmetall’s global Power Systems division. Notably, Aequita has been aggressively expanding into industrial M&A recently; in 2024, it acquired Bosch’s braking components business and completed several asset acquisitions in the petrochemical sector.Even before officially listing Power Systems for sale, Rheinmetall had already converted several civilian factories to military production. Its plant in Neuss, Germany, is now producing satellites with Finnish firm ICEYE Oy, while its Berlin site has shifted to manufacturing artillery shell components. A factory in Abadía, Spain, is also transitioning to military production. However, insiders revealed that retrofitting costs exceed those of building new facilities, limiting the scale of these conversions.Since the Russia-Ukraine conflict erupted in 2022, profitability at Rheinmetall’s auto division has consistently lagged behind its defense operations. Consequently, the company accelerated the divestment of non-defense assets between 2023 and 2024, selling large- and small-bore piston businesses to Sweden’s Koncentra Verkstads and Switzerland’s Comitans Capital, respectively.Driven by surging defense spending across Europe following the Ukraine war, several industrial groups have shed auto parts businesses to double down on defense. French automaker Renault plans to produce military drones, while engine manufacturer Deutz AG is pivoting toward defense orders—both prime examples of this trend.Gasgoo Commentary: Rheinmetall’s exit from the auto sector to focus entirely on defense reflects a choice between sluggish auto profits and a booming defense market. It also mirrors a broader shift in European industrial capital, where geopolitical tensions are driving a sustained tilt toward defense.Effective June 1! Yanfeng Benoi Completes Business Integration UpgradeOn June 2, OPmobility and Yanfeng announced they had completed the business upgrade of their joint venture, Yanfeng Benoi. The adjustment officially takes effect on June 1, 2026.Image Source: Yanfeng Benoi WebsiteUnder the upgrade plan, OPmobility and Yanfeng are integrating their respective module assembly operations into Yanfeng Benoi and adding a new business line for signature and decorative lighting solutions. Post-integration, Yanfeng Benoi will target domestic OEMs with a comprehensive, differentiated product portfolio covering exterior body systems, signature and decorative lighting, module assembly, and exterior system integration solutions.A leading player in automotive exterior components, Yanfeng Benoi specializes in products like bumpers and tailgates. It currently operates over 30 factories and one R&D center in China, employing approximately 3,000 people. The integration is expected to unlock industrial and commercial synergies to meet the growing demand from Chinese and foreign automakers for integrated solutions.Félicie Burelle, CEO of OPmobility, said the upgrade underscores the company’s long-term commitment and confidence in the Chinese market. By expanding its product and technology matrix, Yanfeng Benoi will further strengthen its capabilities in high-value-added solutions. "This aligns perfectly with our diversification strategy across regions, technologies, and customers," she added.Founded in 2007 by OPmobility and Yanfeng, Yanfeng Benoi sees this business upgrade as a milestone marking a new phase in their partnership.Gasgoo Commentary: By integrating assembly operations and expanding into the new lighting sector, Yanfeng Benoi is leveraging an integrated, unified product matrix to align with automaker procurement trends, solidifying its market position.Aptiv Further Expands Partnership with NVIDIAOn June 1, Aptiv announced an expansion of its collaboration with NVIDIA to drive a comprehensive upgrade of the NVIDIA Jetson platform (including next-generation platforms like Jetson Thor). The goal is to transform it into a commercially viable, production-ready edge AI platform.The cooperation focuses on overcoming key bottlenecks in scaling edge AI deployment in distributed environments: long-term lifecycle technical support. This includes continuous vulnerability monitoring and security patching, a platform compliant with the Cyber Resilience Act (CRA), and a stable, production-grade Linux operating environment.Image Source: AptivKey measures under the partnership include:Providing long-term support for the existing meta-tegra Board Support Package (BSP) on the NVIDIA Yocto Project platform, focusing on commercial-grade lifecycle management, security updates, and ongoing maintenance;Building a CRA-compliant Yocto platform to streamline compliance and help enterprises reduce financial and legal liability risks;Deeply aligning the Yocto Project mainline with Wind River Linux to reduce technical fragmentation, simplify maintenance, and enable scalable long-term technical support;Creating a production-grade foundation for Jetson Thor with long-term support, helping customers achieve a seamless transition from development to mass production using a secure, maintainable software stack;Advancing market initiatives to accelerate the adoption of commercial-grade Jetson platforms in embedded systems and long-lifecycle deployments.The partnership also optimizes the integration of NVIDIA CUDA, the Yocto runtime environment, and meta-tegra, aiming to lower development barriers and help R&D teams accelerate mass production deployment.Aptiv’s technology and services now fully cover the existing Jetson installed base as well as next-generation platforms like Jetson Thor. The two companies said they will work together to accelerate the adoption of the NVIDIA Jetson platform across industries such as industrial automation, robotics, aerospace, automotive, and communications.Gasgoo Commentary: Aptiv is deepening its ties with NVIDIA to focus on the long-term commercialization of edge AI platforms. By addressing gaps in production compliance and long-term operations, the partnership provides critical support for the large-scale commercial use of intelligent driving embedded systems.BASF Announces Leadership Changes in Coatings BusinessBASF’s Coatings division recently announced a key appointment: effective July 1, 2026, Steve Arndt will succeed Chris Titmarsh as Senior Vice President of Global Automotive Refinish.Steve Arndt; Image Source: BASFTitmarsh, who served at BASF for 20 years—including 11 in the global automotive refinish business—has decided to step down. He has led the global automotive refinish business as Senior Vice President for over six years, previously overseeing operations in Europe, the Middle East, and Africa, as well as global business management.His successor, Steve Arndt, brings over 30 years of experience in the automotive refinish industry, spanning manufacturing and distribution in North America and Europe. He previously spent six years at Axalta Coating Systems as Global Director of Distribution Sales, responsible for strategies in over 140 countries. Before that, he served as President and COO of FinishMaster, a leading independent refinish distributor in North America.Gasgoo Commentary: The leadership change at BASF’s automotive refinish business, with a successor possessing deep distribution expertise, is likely to bring fresh adjustments to its global distribution network and market strategy, helping the business adapt to the new global landscape.
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