OEM Trend | Automaker Dynamics
Fast Tech: On May 12, Li Auto CEO Li Xiang took to social media to explain the rationale behind his company's in-house chip development, responding to external skepticism that the move was merely a costly attempt to follow industry trends. He argued that self-developed chips are not about proving technical prowess, but about solving bottlenecks that current suppliers cannot overcome, ultimately accelerating the deployment of AI in the physical world. Li Auto plans to synchronize the development of chips, operating systems, large models, and hardware, laying out more core underlying technologies to build a full-domain joint design system for the AI era—a full-chain autonomous route integrating software and hardware. Li Auto's first self-developed cockpit chip, the "Mach 100," has successfully entered mass production. The new Li Auto L9 will be equipped with dual Mach 100 chips, delivering total computing power of 2,560 TOPS. This enables higher frame rates and faster response times, allowing the vehicle to perceive risks earlier and execute evasive maneuvers more quickly in emergency scenarios.
Fast Tech: Reports indicate that the "Keiretsu" supply chain system, long relied upon by Japanese automakers, is accelerating its collapse. To cope with price competition from Chinese automakers, Toyota and Nissan have significantly increased their procurement of Chinese components, leaving Japanese suppliers losing orders in droves. Chinese parts makers hold a 30% to 40% cost advantage over their Japanese rivals. In terms of speed, Chinese firms can move from order to production in just 10 months, whereas Japanese companies require over a year and a half. Crucially, the quality gap has all but vanished. Toyota Gosei Vice President Hiroshi Yasuda admitted that "there is no difference anymore," while MinebeaMitsumi President Tsutomu Hiraka noted that "it is becoming increasingly difficult to feel the difference."
Gasgoo: General Motors is cutting 500 to 600 white-collar IT jobs, restructuring departments to optimize its layout for future development. Sources revealed that management began notifying affected employees on the morning of May 11. The layoffs impact GM offices worldwide. With U.S. auto sales stagnating earlier this year, the company is focusing on boosting profitability. Last October, GM cut hundreds of white-collar positions. Additionally, due toelectric vehicleinvestments falling short of expectations, the company has also laid off thousands of blue-collar workers.
IT Home: The Volkswagen Touran officially ceased production on April 29, 2026, as the last unit rolled off the assembly line at the Wolfsburg plant. The outcome comes as no surprise; this second-generation compact MPV has been in service for over 11 years, making it the oldest model in Volkswagen's German domestic lineup. Volkswagen cited the reason for discontinuation: the Touran cannot meet the UN "General Safety Regulation Phase II C" standards, which take effect on July 6, 2026. Without an exemption, the vehicle can no longer be registered as new.
Cailian Press: Intellectual property data from Tianyancha shows that Seres Automobile Co., Ltd. has recently been granted a patent for "a battery pack detachment device for electric vehicles in collision scenarios and an electric vehicle." The abstract indicates the invention relates to EV component technology, featuring a lower battery case with front-side pillars and rear-side pillars. A rear support component includes an end plate with support sleeves that engage with the rear pillars, while a front support component includes a front plate with a support box and an electric push rod. The mechanism uses guide plates and rectangular rods to secure the front pillars. In the event of a collision, this application allows the battery pack to separate from the vehicle body, thereby enhancing safety performance.
Supply Chain News | Components Sector
Interface News: On May 12, Panasonic Electric Works Co., Ltd. announced that it has decided to transfer its automotive motor and automotive cooling fan motor businesses to MinebeaMitsumi Inc. The company plans to sign the final contract for the business transfer on May 13, 2026. The transfer is scheduled to take effect on November 2, 2026, though this date may be adjusted depending on the time required for relevant procedures.
Interface News: On May 12, the Suzhou Taijin New Energy Vehicle Lightweight Components Regional Headquarters project officially broke ground in the Taicang Science and Technology Industrial Park. The project has a total planned investment of 600 million yuan and covers an area of 56 mu, primarily producing motors and structural components for new energy vehicles.
Gasgoo: Recently, Autoliv announced it will gradually scale back its manufacturing operations in Turkey to counter the global auto industry's downturn, with plans to fully cease production by 2028. Autoliv's Turkish plant is located in the Kocaeli industrial zone in northwest Turkey. It currently employs 2,200 people, accounting for about 4% of the company's global workforce, and mainly produces steering wheels, airbags, and seatbelts.
Gasgoo: Lear Corporation recently released its first-quarter earnings report, with multiple core metrics hitting multi-year highs. Net profit doubled year-over-year, and both earnings and orders strengthened, demonstrating robust growth momentum. The report shows first-quarter sales reached $5.8 billion, a 5% year-on-year increase, while core operating income stood at $297 million, up 10%. Net profit came in at $172 million, doubling from $81 million in the same period last year. Adjusted net profit was $200 million, an 18% increase.
Industrial Economy | Focus
Cailian Press: On May 12, Hong Kong's Hang Seng Index closed down 0.22%, and the Hang Seng Tech Index fell 0.70%. Chip stocks retreated, with Hua Hong Semiconductor dropping over 3%, Axera falling nearly 4%, and Fudan Microelectronics down nearly 3%. The lithium battery sector weakened, with CATL down nearly 1%, Ganfeng Lithium falling 1.54%, and CALB dropping 2.56%.
Cailian Press: On May 12, the China Automobile Dealers Association released the results of its "Automobile Dealer Inventory" survey for April 2026: The comprehensive inventory coefficient for dealers in April was 1.89, up 7.4% month-over-month and 34.0% year-over-year. According to statistics from the CADA's Passenger Car Branch, April retail sales of passenger vehicles reached 1.384 million units. Based on this, the total inventory of automobile dealers at the end of April was approximately 2.6 million units.
CCTV Finance: On May 12, affected by the situation in the Middle East, domestic sulfur prices have risen continuously this year. On May 6, the benchmark price hit a record high of 7,300 yuan per ton. On the 11th, the domestic sulfur benchmark price was reported at 7,250 yuan per ton, maintaining high volatility, with a year-to-date increase of about 80%. Meanwhile, sulfur arrival volumes and inventories are continuing to decline. It is understood that over half of domestic sulfur is imported, and the Middle East is a key global production region, accounting for about one-quarter of global output. Industry insiders point out that inventories at major domestic ports like Nanjing, Fangcheng, and Zhenjiang are at low levels. Beyond the Middle East situation, a structural domestic supply-demand gap is also a driver; on the supply side, sulfur output—a refining byproduct—will decline as oil and gas consumption peaks amid the energy transition. On the demand side, the expansion of new energy vehicles is driving growth in lithium iron phosphate (LFP) battery demand, further widening the supply gap.
Cailian Press: On May 12, Bank of America downgraded the stock ratings of European auto giants Stellantis NV and Renault Group, while also cutting Volkswagen's target price. In its report, BofA Securities cited the rise of Chinese automakers in the European market as the primary reason.
Gasgoo: Recent data from the China Automotive Power Battery Industry Innovation Alliance shows that domestic power battery installations in April reached 62.4 GWh, a 10.4% month-over-month increase and a 15.2% year-over-year rise, reflecting a steady recovery in the downstream new energy vehicle market.
