Core Insights - The Thai vehicle market experienced a year-on-year decline of just over 2% in February 2026, with sales dropping to 48,242 units from 49,313 units a year earlier, primarily due to a significant decrease in battery electric vehicle (BEV) sales following the end of the government's EV3.0 incentive program [1][2] Vehicle Sales Performance - February 2026 marked the first year-on-year decline for the Thai vehicle market in nearly a year, following a strong surge in January when BEVs purchased before the EV3.0 program's expiration were delivered [2] - Overall vehicle sales increased by over 25% in the first two months of 2026, reaching 122,178 units compared to 97,405 units a year earlier, indicating a recovery from two years of declines [3] BEV and Other Vehicle Segments - BEV sales fell by 19% to 6,168 units in February, but year-to-date sales increased by 160% to 38,027 units due to a strong January [4] - Sales of hybrid electric vehicles (HEVs) rose by 19% to 25,360 units in the two-month period, while sales of pickup trucks declined by almost 4% to 24,505 units, and internal combustion engine (ICE) passenger cars fell by 16% to 19,815 units [4] Production and Export Trends - Vehicle production in Thailand rose by 7% year-to-date to 236,338 vehicles, while exports fell by almost 3% to 139,600 units, impacted by a strong baht and increasing competition from Chinese automakers [5] - The Federation of Thai Industries projected vehicle production to reach 1.5 million units in 2026, with 550,000 units for domestic sales and 950,000 for export [6] Market Forecast - GlobalData anticipates a slight decline in domestic light vehicle sales to 613,000 units in 2026, following a 9% increase to 617,000 units in the previous year, with a forecasted rebound of nearly 12% to 684,000 units in 2027 [6]

Core Insights - Recent advancements by U.S. automakers in Battery Electric Vehicle (BEV) technology highlight the significant gap between the current industry leaders and emerging competitors [1] Group 1: Industry Developments - U.S. automakers are making strides in improving BEV technology and design, indicating a competitive shift in the automotive sector [1]

Market Performance - Thailand's new vehicle market saw a significant rebound in December 2025, with sales increasing by 47% to 71,121 units from 54,016 units a year earlier [1] - December marked the ninth consecutive month of growth, following two years of declines due to financing challenges faced by consumers and small businesses [2] - In 2025, the overall vehicle market expanded by 8.5% to 621,166 units after a 26% drop in 2024 [3] Electric Vehicle Sales - Battery electric vehicle (BEV) sales surged by 80% in 2025, reaching 120,301 units, which accounted for over 19% of total vehicle sales [3] - December 2025 saw BEV deliveries triple to 19,748 units as automakers implemented aggressive marketing strategies and extended battery warranties [3] Production and Export Trends - Vehicle production in Thailand fell slightly by less than 1% to 1,455,569 units in 2025, with exports decreasing by 8.2% to 935,750 units due to stricter emissions regulations and increased competition from Chinese automakers [4] - The Federation of Thai Industries has raised its 2026 vehicle production target to 1.5 million units, which includes 550,000 units for domestic sales and 950,000 units for exports [4] Future Outlook - Analysts predict modest growth for the Thailand light vehicle market in 2026, with domestic light vehicle sales expected to rise by nearly 3% to 625,000 units [5] - The easing of financing pressures and new market entries are anticipated to drive sales growth throughout the year [5]

Core Insights - Tesla's brand appeal is declining among new-car buyers in Europe, with one in three considering it mainstream rather than premium [1][3] - Chinese automotive brands are gaining consumer trust and interest, with significant increases in consideration for purchasing [4][5] Tesla Brand Sentiment - Sentiment towards Tesla is now more negative than positive, with 38% of new-car buyers feeling the brand's novelty has worn off [2] - Tesla leads in charging infrastructure but lags behind competitors in design, quality, and emotional appeal, with 33% of buyers stating it is not as advanced as before [3] Chinese Automotive Brands - Consideration for Chinese car brands has jumped from 31% to 47% year-on-year, marking the largest increase among international brands [5] - Trust in Chinese brands has improved from 22% in 2024 to 28% in 2025, with BYD ranking eighth in positive perception among all brands [6] Market Dynamics - Traditional automakers face pressure from the rise of Chinese brands and must innovate to maintain market share [7] - European automakers need to justify their premium pricing through genuine technological and design leadership to remain competitive [7] Consumer Perceptions - 42% of consumers indicate that the Chinese ownership of a European car brand is acceptable as long as product quality is good [15] - Tesla competes better against mainstream brands in technology and charging speed but falls short in styling and build quality [15]

Core Insights - The Thai government has revised its battery electric vehicle (BEV) incentive program to boost exports and address concerns of a domestic supply glut due to increased production capacity, primarily from Chinese brands [1][3] Summary by Sections Incentive Program Changes - The Board of Investment (BOI) has modified the EV3.0 and EV3.5 incentive programs, allowing each BEV produced for export to count as 1.5 units towards local production obligations, up from 1 unit previously [2] - These changes aim to compensate for reductions in excise duties and other incentives that facilitated new entrants in the local market [2] Investment and Market Impact - Thailand has attracted approximately US$ 4 billion in investments related to BEVs and components since the introduction of the EV3.0 and EV3.5 programs, mainly from Chinese automakers like BYD and GWM [3] - BEV sales reached nearly 90,000 units in the first ten months of 2025, representing over 18% of total vehicle sales, driven by increased production and competitive pricing from Chinese manufacturers [3] Additional Regulatory Adjustments - The registration deadline for BEVs under the EV3.0 program has been extended to January 2027, while the EV3.5 program's deadline has also been moved to January 2027 [5] - The government will delay subsidy payments to manufacturers not meeting targets and has extended the deadline for imported battery cells to count as local production until June 30, 2026, up to 10% of the BEV price [5] - Manufacturers can exit the import compensation program by returning excise tax discounts, with additional penalties imposed [5] - Support measures for hybrid electric vehicle (HEV) production will be fast-tracked [5]

Market Overview - U.S. equity markets are expected to open strongly due to improved investor sentiment following a bipartisan deal in the Senate to end the government shutdown [1][3] - Major index futures are showing gains, with S&P 500 futures up approximately 0.7% to 0.9%, Nasdaq 100 futures up 1.2% to 1.5%, and Dow Jones futures up 0.1% to 0.4% [2][4] Economic Impact - The government shutdown, lasting 40 days, has created significant economic uncertainty, delaying crucial data releases and impacting various sectors [3] - The resolution of the shutdown is anticipated to lead to the release of delayed economic reports, including the Consumer Price Index (CPI), initial jobless claims, retail sales, and Producer Price Index (PPI) for October [5] Company Developments - Nvidia (NVDA) saw a 7% stock decline last week but is expected to recover as optimism returns to the tech sector, with CEO Jensen Huang requesting TSMC to increase chip supplies for AI technology [7] - Apple (AAPL) recently surpassed a $4 trillion market value, indicating the strength of major tech players [11] - Pfizer (PFE) has agreed to acquire Metsera for up to $10 billion, winning a bidding war against Novo Nordisk [11] - CoreWeave ([CRWV]) is set to release earnings today, with shares having more than doubled since going public, driven by deals with Nvidia and Meta [11] - Toyota Motor Corporation (TM) unveiled a new Battery Electric Vehicle (BEV) model, part of its strategy for carbon neutrality [11] - Visa (V) and Mastercard (MA) are nearing a deal with merchants that could reshape the credit card rewards landscape [11] - UPS (UPS) and FedEx (FDX) may face operational impacts due to the FAA grounding MD-11 planes following a recent crash [11] - Diageo (DEO) appointed former Tesco boss Dave Lewis as its new chief [11] - Nomad Foods (NOMD) reported lower revenue and earnings in Q3 2025, citing ongoing market headwinds [11] Upcoming Events - The week includes important economic updates, such as the German Harmonized Index of Consumer Prices (HICP) and Eurozone's Q3 GDP [6] - High-profile earnings reports are expected from companies like Cisco (CSCO), Applied Materials (AMAT), Walt Disney (DIS), and others [8]

Market Overview - The UK new car market showed stability in October with a 0.5% increase in registrations, totaling 144,948 units [1] Electrified Vehicles Performance - Electrified vehicles were the only powertrain technologies to experience growth, with battery electric vehicle (BEV) registrations rising by 23.6%, adding 7,028 units, resulting in a 25.4% market share, the second highest this year [2] - Plug-in hybrid vehicle (PHEV) registrations increased by 27.2%, accounting for 12.1% of the market, while hybrid electric vehicles (HEV) grew by 2.1%, claiming a 13.3% share [2] - Combined, electrified vehicles represented 50.8% of new car registrations for the second consecutive month [2] Year-to-Date Performance - Year-to-date, the BEV market has grown by 28.9%, with 386,244 units registered, surpassing the total for the entire year of 2024 with two months remaining [3] - BEVs now constitute 22.4% of all new sales, driven by significant manufacturer investment and government support through the Electric Car Grant (ECG) [3] Future Market Risks - The SMMT warns that future market growth may be jeopardized by government plans to end Employee Car Ownership Schemes (ECOS), which are crucial for attracting talent in the UK automotive sector [4] - The proposed taxation on ECOS vehicles could lead to the closure of these schemes, limiting access to new zero-emission vehicles for many workers [4] Economic Impact of ECOS Changes - Approximately 100,000 cars are supplied via ECOS annually, representing about 5% of the new car market; changes could depress growth and negatively affect nearly-new and used markets [5] - The SMMT estimates that over £1 billion in revenue could be lost to the industry, risking 5,000 manufacturing jobs, while the Treasury could face a £0.5 billion loss from VAT and Vehicle Excise Duty receipts [5] Market Forecast - GlobalData projects the UK car market to reach around 2 million units by 2025, although this forecast is subject to risks [6] - The outlook for the UK car market remains challenging, with cautious sentiment due to tightening fiscal policies and weak immediate growth prospects for the UK economy [7]

Core Insights - New vehicle sales in Indonesia fell by 15% in September 2025, totaling 62,071 units compared to 73,108 units in September 2024 [1] - The overall vehicle market shrank by over 11% year-on-year in the first nine months of 2025, with light passenger vehicle sales down by 13% and commercial vehicle sales down by 7% [3] - Japanese automakers are facing increased competition from Chinese brands, particularly in the battery electric vehicle (BEV) segment, which saw sales double to 54,593 units in the first nine months of 2025 [5] Market Performance - The Indonesian vehicle market experienced a decline in sales, with a total of 561,819 units sold in the first nine months of 2025, down from 633,660 units in the same period last year [3] - Sales of small passenger cars under the government's 'affordable energy saving car' program dropped significantly by 34% to 89,051 units [4] - Overall vehicle production decreased by 3.4% year-to-date, totaling 854,952 units, although exports of fully-assembled vehicles rose by 11% to 382,374 units [6] Manufacturer Performance - Toyota's sales fell by 13% to 181,817 units, while Daihatsu's sales dropped by 24% to 95,307 units [4] - Other manufacturers also reported declines: Mitsubishi down 10% to 48,944 units, Honda down 33% to 46,623 units, and Suzuki down 10% to 44,253 units [4] - The presence of Chinese brands, such as BYD and its Denza brand, has significantly impacted the market, with BYD accounting for 26,852 units sold [5]

Core Insights - Chinese automakers reported a total of 1.395 million new energy vehicle (NEV) sales in August 2025, marking a 27% increase year-on-year, although growth has slowed significantly in the domestic market recently [1][2] Industry Performance - The NEV segment, which includes plug-in hybrid vehicles and zero-emission vehicles, has experienced a slowdown in growth despite government incentives and discounts from manufacturers [2][7] - In 2024, global NEV sales surged over 35% to 12.9 million units, with exports rising by 7% to 1.28 million units, accounting for approximately 41% of total vehicle output in China [2][5] - NEV sales in the first eight months of 2025 increased by 37% year-on-year to 9.622 million units, representing over 45% of global deliveries from Chinese automakers [5] Key Players - Major players driving growth in the NEV market include BYD and Geely, along with numerous startups like Leapmotor, Li Auto, and Xpeng, which have established significant operations in the last decade [3] - BYD has seen a remarkable 41% increase in global sales to 4.3 million units in 2024, surpassing SAIC Motor as the largest vehicle manufacturer in China [4] - Geely's NEV sales nearly doubled to over 1 million units in the first eight months of 2025 [4] Domestic Market Trends - Domestic NEV sales, excluding exports, rose by 31% to 8.091 million units, but growth has sharply slowed in recent months, with August sales growing by only 18% to 1.171 million units [6] - Retail data indicates that passenger NEV sales increased by just 7.5% to 1.1 million units in August, with BEV sales up by 17% to 686,000 units, while passenger PHEV sales declined by nearly 7% to 414,000 units, suggesting market saturation [7]

Core Viewpoint - Berkshire Hathaway has fully exited its stake in BYD, marking the end of a 17-year investment relationship, which has raised concerns about BYD's future growth prospects in the competitive EV market [1][2][3]. Company Summary - BYD's shares fell over 3% following the news of Berkshire Hathaway's complete divestment [2]. - Berkshire Hathaway initially invested in BYD in September 2008, purchasing 225 million shares for approximately $230 million, which later appreciated to a value of around $7.7 billion before the sell-off began in 2022 [3]. - A BYD executive expressed gratitude towards Berkshire Hathaway for their long-term support and investment [2]. Industry Summary - Despite BYD's battery electric vehicle (BEV) registrations surpassing those of Tesla in Europe for the first time in May, the company's overall growth appears to be slowing [5]. - Recent reports indicate that BYD has reduced its 2025 sales target in China by up to 16% to 4.6 million vehicles, which would represent the slowest annual growth rate in five years [6]. - The competitive landscape in China's EV market, along with potential product oversaturation, is contributing to the challenges faced by BYD [6].