In shortThe global industrial AI market reached $43.6 billion in 2024 and is expected to grow at a CAGR of 23% to $153.9 billion by 2030, according to the Industrial AI Market Report 2025–2030 (published August 2025).Although Industrial AI spending today only represents 0.1% of revenue, most manufacturers now have a CEO-driven AI strategy with several industrial AI focus areas emerging: industrial data management/architectures, AI for quality & inspection, edge AI, industrial copilots, and employee training ...

TOKYO (Reuters) - Toyota Motor will start making two battery-powered sport utility vehicles at its U.S. Kentucky plant and will end production of a luxury Lexus brand model at the site, a person familiar with the matter said. The electric vehicles the Japanese automaker plans to build in Kentucky will be based on the RAV4 and the Land Cruiser, according to the person, speaking on condition of anonymity because they were not authorised to speak publicly. Toyota declined to comment on its future product pl ...

Core Viewpoint - Toyota Motor is consolidating the production of its luxury Lexus brand cars in the United States into a single location due to high tariffs imposed by the Trump administration [1] Group 1: Company Strategy - The decision to consolidate production aims to streamline operations and reduce costs associated with tariffs [1] - Previously, Lexus production was split between two locations, indicating a shift in strategy to adapt to changing economic conditions [1] Group 2: Industry Impact - The move reflects broader trends in the automotive industry as companies respond to tariff pressures and seek to optimize production efficiency [1] - This consolidation may influence competitive dynamics within the luxury vehicle market in the U.S. [1]

Core Viewpoint - The article discusses the decline of the Toyota Alphard, once considered a "god car" in the Chinese market, highlighting the factors contributing to its reduced desirability and the rise of domestic competitors [4][14][61]. Group 1: Background of Toyota Alphard - The Toyota Alphard was initially designed for Japanese family users, not as a luxury business vehicle, and gained popularity in China due to its association with celebrities and high-profile users [12][22][30]. - The vehicle's price in Japan was approximately 500 million yen, equivalent to around 300,000 RMB, making it a popular choice among middle-class families [24]. - The introduction of the second generation in 2010 marked its transition to a luxury positioning, with prices starting at 600,000 to 700,000 RMB, leading to increased demand and subsequent price hikes by dealers [36][37]. Group 2: Market Dynamics and Price Trends - At its peak, the Alphard commanded a price increase of up to 300,000 RMB, reflecting its status as a high-demand vehicle with limited supply [20][21]. - Sales data indicates that from 2017 to 2021, the Alphard sold 85,000 units in China, maintaining its position as the top high-end MPV [45]. - However, after 2021, sales began to decline, and the once significant price increases have reduced to 20,000 to 30,000 RMB [14][46]. Group 3: Competition and Market Changes - The rise of domestic brands has significantly impacted the Alphard's market position, with competitors like the Denza D9 and Lantu Dreamer offering similar features at competitive prices [65][66]. - Toyota's own models, such as the Vellfire and Lexus LM300h, have also entered the market, further diluting the Alphard's exclusivity [52][56]. - The changing consumer preferences and the emergence of new domestic MPVs have led to a reevaluation of the Alphard's value proposition, as its unique selling points are increasingly matched or surpassed by competitors [61][67]. Group 4: Conclusion on Alphard's Status - The article concludes that while the Alphard was a groundbreaking product in the MPV segment, its inflated status was not sustainable, and the vehicle's decline was inevitable due to market evolution and increased competition [69][70][71].

Core Insights - Toyota's SmartPath digital retail solution has achieved a significant milestone with the sale of its 1 millionth vehicle, highlighting the effectiveness of this innovative retail technology [1][2] - The SmartPath system, introduced in 2020, allows customers to transition smoothly between online research and in-dealership shopping, enhancing the car buying experience [2] Company Overview - Toyota has been a key player in the U.S. automotive market for nearly 70 years, focusing on sustainable mobility through its Toyota and Lexus brands, supported by approximately 1,500 dealerships [3] - The company employs nearly 48,000 individuals in the U.S. and has produced over 35 million vehicles across its 11 manufacturing plants [3] - In 2025, Toyota's North Carolina plant began assembling automotive batteries for electrified vehicles, indicating a shift towards electric mobility [3] - Through the Driving Possibilities initiative, the Toyota USA Foundation is dedicated to developing educational programs in historically underserved communities near its U.S. operations [3]

Market Performance - The Hang Seng Index closed at 25,058, down 1.12% for the day but up 24.92% year-to-date [1] - The Hang Seng Tech Index fell 1.85% to 5,578, with a year-to-date increase of 24.86% [1] - The A-share market saw significant declines, with the ChiNext Index dropping over 4% [5] Currency and Commodity Trends - The Renminbi Index stood at 96.570, showing a 0.90% increase over the past month but a 3.33% decrease over six months [2] - Brent crude oil prices decreased by 1.51% to $67.00 per barrel, while gold prices rose by 5.02% to $3,542.73 per ounce [2] Economic Indicators - U.S. labor productivity increased by 3.3% in Q2, marking the largest gain of 2023 [9] - The U.S. trade deficit widened to $78.3 billion in July, the highest in four months, driven by a 5.9% increase in imports [12] - The ISM Services PMI rose to 52 in August, indicating expansion in the services sector [13] Company-Specific Developments - FWD Group reported a more than 100% year-on-year increase in new business annualized premium in Hong Kong and Macau [17] - New World Development's basic profit increased by 0.5% year-on-year, with a dividend payout remaining stable [19] - The company reported a significant drop in property development gross margin to 12% from 26% the previous year [20] IPO and Market Activity - Recent IPOs showed varied performance, with some stocks like Jiaxin International Resources seeing a first-day gain of 177.84% [31] - The upcoming IPO of Daxing Technology is set for September 9, 2025, with a proposed offer price of 49.5 HKD [31]

Group 1: Hong Kong Stock Market Highlights - China Tobacco Hong Kong (06055) rose over 2% after announcing exclusive distribution agreements for brand cigars with Hubei and Shandong Tobacco [1] - Sportswear stocks generally increased, with Li Ning (02331) up nearly 1% and Tmall (06110) up nearly 2%, following a government directive to enhance the modern sports industry and boost consumption [1] - He Yu-B (02256) surged over 3% as the company announced multiple positive developments, including the approval of oral PD-L1 combined with Gorai Leisai for Phase II clinical trials [1] - Gold stocks collectively rose, with Lingbao Gold (03330) up over 4%, China Gold International (02099) up over 1%, and Zijin Mining (02899) up over 3%, amid expectations of a U.S. interest rate cut [1] - UBTECH (09880) increased over 2% after Citigroup reported that the company has received 400 million RMB in humanoid robot orders and secured a $1 billion strategic investment from a Middle Eastern fund [1] - Huimai Technology (01860) surged over 12%, reaching a historical high, with a year-to-date stock price increase of over 110% due to the continuous iteration of its AI-driven smart bidding system [1] Group 2: Other Notable Stocks - Wanka Yilian (01762) rose over 11% after announcing a comprehensive cooperation memorandum with Alibaba Cloud to create an AI marketing ecosystem [2] - Longpan Technology (02465) increased over 10%, with Citic Securities indicating potential opportunities in the battery sector due to an upcoming significant meeting [2] - Juzi Bio (02367) rose over 4%, with institutions optimistic about the recovery of live streaming during the upcoming Double Eleven shopping festival [2] - Shoucheng Holdings (00697) increased over 8% after its subsidiary announced additional investment in Songyan Power amounting to several million RMB [2] Group 3: U.S. Stock Market Highlights - Salesforce (CRM.US) fell 4.85% after reporting a 9.8% year-over-year revenue growth for Q2, with Q3 revenue guidance slightly below expectations [3] - American Eagle (AEO.US) surged 37.96% after exceeding expectations in its Q2 earnings report [3] - Hewlett Packard Enterprise (HPE.US) rose 1.49% with a 19% year-over-year revenue growth in Q3, marking a record high [3] - United Microelectronics (UMC.US) increased 3.46%, reporting a 1.86% year-over-year sales growth for the first eight months of the year [3] - ZTO Express (ZTO.US) continued to rise by 0.94%, with the logistics industry index in China at 50.9%, up 0.4 percentage points from the previous month [3] - Bilibili (BILI.US) rose 0.99%, with research indicating high growth in the gaming industry supported by policy, expecting continued quarter-over-quarter improvement [3] - Waterdrop (WDH.US) increased 2.25%, reporting nearly a 120% growth in net profit attributable to shareholders, driven by AI model empowerment [3] Group 4: Additional U.S. Stock Movements - Sanofi (SNY.US) fell 9.14% despite achieving all primary and secondary endpoints in a Phase III study for Amlitelimab, as results did not meet market expectations [4] - Toyota (TM.US) rose 2.40% after announcing plans to produce a pure electric vehicle model at its Czech factory, marking its first electric vehicle production in Europe [4] - Baidu (BIDU.US) increased 1.88% following the release of an action plan by the Ministry of Industry and Information Technology to enhance intelligent cloud services [4] Group 5: Earnings Reports and Forecasts - C3.ai (AI.US) fell 7.31% after reporting Q1 results and revenue guidance for FY2026 that fell short of expectations [5] - Samsara (IOT.US) rose over 10% with a 30% year-over-year revenue growth in Q2 [5] - UiPath (PATH.US) increased nearly 5%, reporting Q2 revenue of $362 million, a 14% year-over-year growth, and projecting FY2026 revenue between $1.571 billion and $1.576 billion [5] - DocuSign (DOCU.US) rose nearly 9% after reporting Q2 revenue of $800.6 million, a 9% year-over-year increase, with GAAP gross margin at 79.3% [5]

Core Points - The U.S. President Trump signed an executive order ending months of trade negotiations with Japan, reducing tariffs on Japanese imported cars from 27.5% to 15% and covering multiple sectors including investment, agricultural procurement, and defense cooperation [1][3] - The new tariff rate will take effect seven days after the announcement, with some reductions retroactive to August 7 [1] Group 1: Tariff Adjustments - The new tax rate follows a "high not low" principle, maintaining the original higher rates for goods above 15%, establishing 15% as the de facto benchmark rate, aligning with the treatment received by the EU [3] - Toyota has projected a nearly $10 billion loss due to the global automotive tariffs initiated by the U.S. in April [3] Group 2: Agricultural and Defense Commitments - Japan has committed to purchasing $8 billion worth of U.S. agricultural products annually, including a 75% increase in rice imports, along with expanded purchases of corn, soybeans, and bioethanol [3] - In return, Japan will receive "minimum tax rate protection" for its chips and pharmaceuticals in the U.S., and zero tariffs on commercial aircraft and parts [3] Group 3: Defense Spending and Aircraft Purchases - Japan will increase its defense spending in the U.S. from $14 billion to $17 billion annually and has committed to purchasing 100 Boeing aircraft [3] Group 4: Concerns and Historical Context - There are concerns within Japan regarding a $550 billion investment, fearing excessive capital outflow could impact domestic industry upgrades [3] - The tariff adjustments, while avoiding a full-scale trade war, still exceed Japan's desired tariff level of 5% [3]

Core Points - Japan's manufacturing sector has experienced a significant decline in profits due to the impact of U.S. tariff policies, with overall regular profits dropping by 11.5% year-on-year for two consecutive quarters [1][4][7] - The non-manufacturing sector, particularly in tourism and services, has shown resilience with a profit increase of 6.6% compared to the previous year [3][4] Manufacturing Sector Impact - The manufacturing sector's regular profits fell sharply, particularly in the transportation machinery sector, which includes the automotive industry, with a decline of 29.7% [4][7] - Other affected industries include steel, which saw a profit drop of 48.2%, and metal products, which experienced a 36.6% decrease [4][7] - The overall regular profit for the manufacturing sector was recorded at 35.8338 trillion yen, marking a historical high for the quarter, but the decline in specific sectors overshadowed this achievement [3][4] Tariff Effects - U.S. tariffs imposed on imported automobiles and key components have significantly impacted Japanese exports, with tariffs on passenger cars rising from 2.5% to 27.5% [7][9] - The steel industry faced additional challenges as U.S. tariffs on steel and aluminum products increased from 25% to 50%, leading to losses in the Japanese steel sector [7][8] - In July, Japan's exports to the U.S. fell by 10.1% year-on-year, with automotive exports specifically declining by 28.4% [8][9] Company-Specific Impacts - Major Japanese automakers reported substantial profit losses due to U.S. tariffs, with Honda's net profit plummeting by 50.2% in the latest quarter [11] - Toyota estimated a loss of 450 billion yen in operating profit due to tariffs, with an expected total loss of 1.4 trillion yen for the fiscal year [11] - Other automakers, including Mazda, Nissan, Subaru, and Mitsubishi, also reported significant losses, prompting them to revise their profit forecasts downward [11]

Core Viewpoint - Toyota Motor Corporation announced plans to produce a pure electric vehicle at its factory in the Czech Republic, marking its first electric vehicle production in Europe. The company will invest approximately €680 million to expand its facility in Kolin, with the Czech government contributing up to €64 million for a dedicated battery assembly facility [1]. Group 1 - Toyota's stock rose by 1.38% in pre-market trading on September 4 [1]. - The specific details and production timeline for the new electric vehicle have not yet been disclosed [1]. - The investment in the Kolin factory is part of Toyota's broader strategy to enhance its electric vehicle production capabilities in Europe [1]. Group 2 - The planned battery assembly facility will support the production of the new electric vehicle, indicating a commitment to localizing battery production [1]. - The investment from the Czech government highlights the collaboration between Toyota and local authorities to promote electric vehicle manufacturing [1].