OEM Trends
On July 26, ZEEKR addressed reports of restricted overseas infotainment networks by launching a "Cross-border Guardian" feature in its app. This allows users to unlock functions with a single tap. The automaker is also developing an overseas anti-theft switch. Users can activate this setting on their phones before traveling abroad; it remains inactive unless manually enabled. Even if triggered, owners retain the ability to unlock features via the app.
IT Home: Chery Group recently announced that global cumulative sales have exceeded 20 million units. This secures its position as China's largest passenger vehicle exporter for 23 consecutive years. In June alone, the group shipped 191,062 vehicles overseas. This represents a record high for a single month and marks the fourth consecutive month of record performance.
Kuai Technology: Dongfeng eπ recently announced that its new mid-to-large SUV, the eπ M8, secured over 10,000 orders within four hours of launch. Released on July 23, the M8 is available in five variants priced between 179,800 and 219,800 yuan. A limited-time offer reduces the starting price to 165,800 yuan.
Jiemian News: Narit, Secretary-General of Thailand's Board of Investment (BOI), revealed that Mitsubishi Motors plans to invest 16 billion baht ($475 million) to expand hybrid vehicle production in the country. The investment aims to solidify Thailand's role as the automaker's primary manufacturing and export hub.
Gasgoo: Volkswagen Group has cut its annual revenue outlook. It now projects a decline of up to 3% for the full year. This is a sharp reversal from earlier expectations of flat growth to a 3% increase. Persistent sales declines in China are exerting pressure on Europe's largest automaker.
Supply Chain News
Gasgoo: CATL recently released its interim report, disclosing first-half revenue of 276.92 billion yuan. This represents a 54.8% increase from a year ago. Net profit attributable to shareholders rose 42% to 43.28 billion yuan. Basic earnings per share reached 9.51 yuan. The battery maker plans to distribute a cash dividend of 6.49 billion yuan. This accounts for 15% of its first-half 2026 net profit. Based on 4.60 billion outstanding shares, this translates to a payout of 14.11 yuan per 10 shares.
Gasgoo: STMicroelectronics reported second-quarter revenue of $3.49 billion, up 26% from a year earlier. This exceeded analyst estimates of $3.47 billion. The chipmaker returned to a net profit of $222 million, reversing a $97 million loss from the same period last year. On a non-GAAP basis, earnings per share reached $0.31, significantly higher than the $0.26 market forecast.
Gasgoo: Valeo reported a significant improvement in earnings quality and cash generation for the first half of 2026. The company reaffirmed its full-year targets of 20 billion to 21 billion euros in sales and a 4.7% to 5.3% operating margin. First-half sales rose 0.7% to 10.4 billion euros. Despite a 1.0% decline in the broader market, sales to OEMs fell only 0.6% to 8.5 billion euros. The Smart Systems and Vision Systems divisions outperformed industry averages.
Gasgoo: Lens Technology and X-Era Lab have signed a strategic partnership to collaborate on embodied intelligence. The agreement aims to combine Lens Technology's precision manufacturing and mass production capabilities with X-Era Lab's global action models and system platforms. They will explore a closed-loop ecosystem of "model + body + scenario."
Gasgoo: Axera has launched a wholly-owned subsidiary, Axera Compute, spinning off its AI inference business to navigate a fiercely competitive market. The AI chipmaker surpassed 1 billion yuan in revenue last year. It expects a standalone entity to help it gain market share. Axera Compute will assume the parent company's "Axera Tongyuan" NPU roadmap. It will focus on inference computing for edge and endpoint devices.
Industrial Economy
On July 26, the Insurance Institute for Highway Safety (IIHS) released a study on Waymo's robotaxis. It is the first independent systematic analysis of large-scale autonomous driving data. Covering approximately 50 million autonomous miles across Phoenix, San Francisco, Los Angeles, and Austin from 2021 to 2024, the study found Waymo's crash rate was 68% lower than that of human drivers. Incidents were generally less severe and mostly not caused by Waymo. However, Austin showed a slightly higher rate due to a small sample size during testing. The IIHS noted limitations in the data, emphasizing that larger sample sizes are needed to definitively prove the safety superiority of autonomous driving.
China's auto exports surged 48.3% year-on-year in the first half to 635.82 billion yuan. They reached more than 210 countries and regions. New energy vehicle exports led the increase, jumping 68.7% to 360.68 billion yuan.
Data from CPCA Secretary-General Cui Dongshu shows China's auto exports reached 5.31 million units in the first half of 2026. This is a 53% annual increase. June alone saw 1.07 million units shipped overseas, up 73% year-on-year and 8% from May. This exceeded expectations. Russia has regained its position as the top destination after a one-year hiatus. Exports to Russia jumped 148% to 448,157 units in the first half, an increase of 267,411 vehicles. In June, shipments to Russia totaled 84,451 units, an increase of 58,053 units, outperforming all other markets.
The CPCA projects July retail sales of 1.52 million passenger vehicles. New energy models are expected to account for 980,000 units, representing a record 64.5% penetration rate. Severe weather in July and demand pulled forward from June's end-of-half-year push caused overall sales to slip. Internal combustion engine sales declined more significantly, leaving new energy vehicles as the market's primary driver. For the first half, cumulative sales reached 8.70 million units. New energy models made up 4.70 million, surpassing gasoline cars with a 54.1% share. Industry insiders expect new energy penetration to exceed 90% by 2030, suggesting significant growth potential remains.
Policy Situation
The International Energy Agency reports that recent Middle East conflicts have disrupted natural gas markets and increased generation costs. However, global electricity demand is poised for robust growth over the next two years. Rising consumption from industrial sectors, appliances, cooling systems, electric vehicles, and data centers is expected to offset these headwinds. The IEA forecasts demand growth of 3.6% in 2026 and 3.8% in 2027, up from 3% in 2025. This will push global consumption to 30,700 TWh by 2027. Renewable energy is set to overtake coal as the world's largest power source by 2026. Solar PV generation alone is expected to add approximately 600 TWh that year. This could potentially surpass wind to become the second-largest renewable source after hydropower.
