China’s auto industry extended its rebound in the first half of 2025, with nationwide vehicle production climbing 12.5% from a year earlier to 15.62 million units and sales rising 11.4% to 15.65 million, according to data released by the China Association of Automobile Manufacturers. It is the first time both metrics have exceeded 15 million units in the January-to-June period.

New-energy vehicles remained the main driver of growth. Output of battery-electric and plug-in hybrid models reached 6.97 million units, up 41.4% year-on-year, while sales rose 40.3% to 6.94 million. In June alone, NEV sales accelerated 26.7% from a year earlier, outpacing the broader market and underscoring robust consumer demand and continued policy support.

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Chinese electric vehicle manufacturers reported strong delivery performances in the first half of 2025, highlighting sustained growth in the new-energy vehicle (NEV) sector amid increasing competition. XPeng Motors delivered 34,611 vehicles in June 2025, a 224% year-over-year increase, marking the eighth consecutive month with deliveries exceeding 30,000 units. XPeng's total deliveries for the second quarter reached a record 103,181 units, with first-half deliveries totaling 197,189 units, surpassing the entire previous year's deliveries. Li Auto delivered 36,279 vehicles in June 2025, representing a 24% decline year-over-year, with second-quarter deliveries totaling 111,074 units.

NIO Inc. reported a 71.2% quarter-over-quarter increase, delivering 24,925 vehicles in June, marking its second-highest monthly delivery on record. In contrast, Ford's U.S. electric vehicle sales declined by 31.4% year-over-year in the second quarter of 2025, with total sales of 16,438 units. Key Ford models included the Mustang Mach-E with 10,178 units sold (-19.5% YoY), F-150 Lightning with 5,842 units (-26% YoY), and E-Transit with 418 units (-88% YoY). Industry analysts noted that the record-breaking deliveries by Chinese NEV manufacturers underscore the sector's continued growth momentum despite intensifying competition.

Chinese carmakers tightened their grip on Europe in May, securing their highest-ever share of the region’s hybrid market and the largest slice of the electric-vehicle segment in ten months, according to industry data seen by Bloomberg. The gains deepen pressure on established European luxury marques already wrestling with price cuts and rapid model cycles from mainland competitors.

The growth story is echoed at home. Xpeng Motors said it delivered 34,611 vehicles in June, a 224% jump from a year earlier, lifting first-half shipments to 197,189—already ahead of its full-year 2024 total. Dongfeng Motor’s premium brand Voyah reported first-half sales of 56,128 vehicles, up 85% year-on-year, marking a fourth consecutive month with deliveries above 10,000 units.

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Chinese automakers are increasingly targeting Africa's underdeveloped automotive market, focusing on electric and hybrid vehicles as they face export restrictions to the United States and Europe. With Africa's population exceeding one billion, these companies see an opportunity to expand by leveraging affordable pricing and local production capabilities. This strategic shift comes amid global trade barriers, prompting Chinese manufacturers to seek new markets and unlock Africa's untapped potential in the electric and hybrid vehicle segments.

Chinese automakers are increasingly targeting Africa's underdeveloped automotive market as they face export restrictions to the United States and Europe. The companies are focusing on electric and hybrid vehicles, leveraging affordable pricing and local production to tap into the continent's potential. Africa, with a population exceeding one billion, represents a significant new market opportunity amid global headwinds and overcapacity in Chinese automotive manufacturing. Some industry experts have raised concerns about Chinese automakers attempting to enter the U.S. market to offload excess production, questioning the necessity given existing supply from other global partners. Additionally, Chinese firms like CATL are encountering challenges in replicating supply chains abroad, particularly in Europe, which further underscores their strategic pivot towards Africa.

China’s Ministry of Commerce said it held an “in-depth” video conference on Thursday between Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Maros Sefcovic. The discussion focused on a range of trade-remedy cases, with particular attention to the electric-vehicle sector, the ministry said in a statement released Friday.

While neither side disclosed concrete concessions, both agreed to maintain technical exchanges and promote what Beijing described as the “healthy, stable development” of China-EU economic ties. The talks come as Brussels weighs possible anti-subsidy duties on Chinese EV imports, a move that has heightened trade tensions between the two economies.

China's consumer goods trade-in subsidy program, which offers up to 20,000 yuan ($2,780) for electric and fuel-efficient vehicle purchases, has been suspended in major cities across at least six provinces, including Guangdong and Henan, due to depleted funds. The surge in consumer participation has overwhelmed the stimulus program, causing funds to run low rapidly. Reports indicate that some subsidies were exploited through loopholes and corruption, such as dealers selling "zero-mileage used cars" to claim subsidies, raising questions about the accuracy of reported new electric vehicle sales. In response to concerns over the potential end of these subsidies, Beijing has confirmed the continuation of the program with an allocation of 138 billion yuan in central government funds planned for the second half of 2025, to be distributed in July and October. This move aims to sustain retail spending, which has increased amid government stimulus efforts, although some analysts caution that such spending relies on borrowing against future consumption.

Chinese automakers are accelerating efforts to become self-reliant in semiconductors, with BYD, Geely, SAIC Motor, Changan Automobile, Great Wall Motor and Li Auto preparing to launch passenger vehicles that use only domestically produced chips, Nikkei Asia reported. At least two of the companies aim to begin mass production of the fully localised models as soon as 2026, part of a broader push to reduce dependence on foreign technology suppliers.

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Chinese electric vehicle manufacturer Xpeng Motors has unveiled its new G7 SUV, featuring up to three in-house developed Turing AI chips with a combined computing power exceeding 2,200 TOPS. The central Turing chip delivers 700 TOPS, approximately three times the performance of Nvidia's Orin chip currently used in Xpeng vehicles. Xpeng is also working to integrate these advanced chips into some Volkswagen models planned for launch in China next year. The company claims its self-designed Turing processors outperform those of US semiconductor leader Nvidia.

Xpeng's Chairman and CEO He Xiaopeng expressed ambitions for the startup to be among the first to introduce advanced intelligent assisted driving technology in Hong Kong. Meanwhile, Nvidia's stock has reached its highest closing price since January, benefiting from its position in the AI chip market. Xpeng joins a growing number of Chinese technology firms developing automotive AI chips, including Xiaomi, Huawei, BYD, Li Auto, Alibaba, Baidu, and ByteDance. Additionally, Toyota's China joint venture has become the first automotive partner to collaborate with both Xiaomi and Huawei.

Chinese auto dealerships have been engaging in a practice of selling new cars as if they were used vehicles to boost sales amid intense price competition. This tactic, referred to as "zero-mileage used cars," has drawn criticism from Chinese state media, which has called for a crackdown on such practices. Beijing has warned domestic carmakers to cease these sales-boosting tricks to avoid triggering a detrimental cycle that could harm the entire automotive industry. Industry insiders have described the current market conditions as "involution-style" competition, warning that an unchecked race to the bottom threatens the sector's long-term viability. In response, Chinese authorities plan to intensify inspections of high-profile and high-risk vehicle models. Additionally, the government is directing automakers to cultivate stable supply relationships to promote industry stability and sustainability.

The U.S. Securities and Exchange Commission (SEC), Wall Street's primary regulatory body, is moving to tighten regulations for foreign companies listed on American stock exchanges, with a particular emphasis on Chinese firms. The SEC noted that many Chinese companies have benefited from reduced disclosure requirements compared to their U.S. counterparts. This initiative follows observations that the composition of foreign issuers has changed notably since the last amendment to the foreign private issuer rules in 2003. The SEC is considering revisions to the eligibility criteria for foreign private issuers to address these developments and enhance investor transparency.

XPeng Motors has partnered with Huawei to integrate the Chinese tech giant's advanced augmented reality heads-up display (AR HUD) into its upcoming G7 electric SUV. The AR HUD system, described as one of the industry’s most powerful in terms of hardware and software, will provide drivers with real-time information including smart driving data, speed, and road conditions. This technology is set to be unveiled at a launch event and represents a collaboration aimed at enhancing in-car display solutions. Meanwhile, in the autonomous vehicle sector, Waymo, Google's driverless taxi company, has surpassed 10 million rides, marking a milestone in the adoption of autonomous ride-hailing services.

Waymo’s presence is notably strong in San Francisco, where autonomous vehicles handle approximately 27% of ride-hailing trips. Recent data indicates Waymo has overtaken Lyft in market share in San Francisco, highlighting its growing influence in the ride-share market. Industry forecasts by Goldman Sachs predict that robotaxi numbers in China could increase dramatically from the current 4,100 to nearly 2 million within the next decade. Waymo plans to double its rides to 20 million as self-driving technology reaches a tipping point. The company’s emphasis on safety and trust continues to support its expansion amid rising competition from players like Tesla. Additionally, other autonomous vehicle advancements include Pony.ai’s Gen-7 robotaxi road tests in China and Nuro’s demonstration of autonomous driving capabilities in complex scenarios. Overall, these developments underscore rapid progress in both in-car augmented reality technology and autonomous ride-hailing services globally.

China's service sector expanded at a faster pace in May, with the Caixin Services Purchasing Managers' Index (PMI) rising to 51.1 from 50.7 in April, surpassing expectations of 51.0. This growth was driven by an increase in new orders and was observed despite ongoing uncertainties related to the United States' tariff hikes. However, the Caixin Composite PMI, which includes both manufacturing and services, declined to 49.6, marking its lowest level since December 2022. Meanwhile, China's new energy vehicle (NEV) retail sales surged 30% year-on-year to 1.06 million units in May, the first time this year that monthly sales exceeded one million units. In the UK, new car registrations increased by 1.6% year-on-year in May to 150,070 units, with electric vehicle discounts contributing to the recovery in sales. The UK service sector also returned to growth as tariff concerns eased.

China's new energy vehicle (NEV) market showed robust growth in May 2025, with wholesale sales reaching 1.24 million units, a 38% increase year-on-year and a 9% rise month-on-month, according to the China Passenger Car Association (CPCA). Retail sales of NEVs also climbed 30% year-on-year to 1.06 million units, marking the first time this year that retail NEV sales exceeded one million units. Overall retail car sales in China grew 13% year-on-year to 1.93 million units, with a 10% increase month-on-month. Meanwhile, the UK new car market experienced a 1.6% year-on-year increase in registrations in May, totaling 150,070 units. The Society of Motor Manufacturers and Traders (SMMT) attributed the UK sales recovery partly to electric vehicle discounts attracting buyers.

Chinese shares traded in Hong Kong declined on Monday amid escalating US-China trade tensions that dampened investor sentiment. The Hang Seng Index opened down 1.06%, while the Hang Seng Tech Index fell 3% to 5,015.22. The Hang Seng Automobile Index experienced a sharper drop, falling 2% after initially opening down 1.5%. Major car manufacturers listed in Hong Kong saw their shares decline, with BYD Co.

(01211 HK) falling nearly 3%, XPeng Motors (09868 HK) and Li Auto (02015 HK) each dropping more than 1.5%, and NIO Inc. (09866 HK) down 1.25%. The broader market weakness reflects concerns over the impact of ongoing trade tensions between the United States and China.

Chinese electric vehicle manufacturer Xpeng has introduced new variants of its Mona M03 model, including the Max and Plus versions, priced between RMB 109,800 and RMB 139,800 (approximately $18,040 to $20,000). The Max variant features advanced AI-powered driving capabilities comparable to Tesla's Full Self-Driving (FSD) system, equipped with a dual-Nvidia Orin SoC delivering 508 TOPS and offering Level 2+ advanced driver-assistance systems (ADAS) across the lineup. The launch was met with strong demand, as Xpeng received 12,566 firm orders within the first hour, with the Max variant accounting for 83% of these orders. The new Mona M03 Max also includes the free Turing smart driving system, enhancing its appeal in the affordable electric vehicle segment in China.

Russian President Vladimir Putin has signed into law a mandate requiring all taxi fleets in Russia to use domestically manufactured vehicles. The new regulation restricts the models eligible for use as taxis to seven, comprising three models produced by Lada and four Chinese car models assembled within Russia. This law aims to enforce a localization requirement for vehicles operating as taxis, effectively banning Western car models from taxi services in the country.

Shares of Chinese electric vehicle maker Xpeng Inc. (NYSE: XPEV) surged over 13% following the release of its first-quarter 2025 earnings report, which exceeded market expectations. The company reported strong revenue growth and robust vehicle deliveries, with a forecast to turn profitable by the fourth quarter. Xpeng also announced plans to introduce humanoid robots for industrial and commercial applications in 2026.

Meanwhile, Advance Auto Parts (NYSE: AAP) saw its stock price rise by more than 50% after reporting first-quarter 2025 results that beat revenue and earnings per share estimates despite a 6.9% year-over-year revenue decline to $2.58 billion. The company posted an adjusted EPS loss of $0.22, better than the expected loss of $0.78, and reaffirmed its full-year 2025 guidance with projected revenue between $8.4 billion and $8.6 billion and EPS ranging from $1.50 to $2.50. The retailer highlighted ongoing store footprint optimization and eight consecutive weeks of same-store sales growth in its professional segment. Notably, Advance Auto Parts maintained its earnings outlook despite the challenging tariff environment, which has not materially impacted its financial guidance. Both companies’ shares saw significant gains in trading, reflecting investor confidence in their growth prospects and strategic plans.

Chinese electric vehicle manufacturer Xpeng plans to launch humanoid robots designed for industrial and commercial applications by 2026, aiming to achieve industry-leading intelligence levels. The company also expects to become profitable by the fourth quarter of 2025. Following a positive first-quarter financial performance, Macquarie upgraded Xpeng's stock rating to Outperform. Additionally, Xpeng is targeting the consumer market with a flying car product set for release in 2026, reflecting growing investor interest in electrified aircraft and advanced mobility solutions.

Chinese and Hong Kong stock markets experienced mixed performance between May 21 and May 23, 2025. On May 21, the Shanghai Composite Index rose 0.21%, the Shenzhen Component Index increased 0.44%, and the Chinext Index gained 0.83%. The Hang Seng Index and Hang Seng Tech Index also advanced by 0.62% and 0.51%, respectively. However, on May 22, these indices reversed course with the Shanghai Composite Index falling 0.22%, Shenzhen Component Index down 0.72%, and Chinext Index declining 0.96%.

The Hang Seng Index dropped 1.19%, and the Hang Seng Tech Index fell 1.7%, with notable stock movements including XPeng rising nearly 6% and Baidu declining over 4%. The Beijing Stock Exchange 50 Index extended its decline to 6% during the afternoon session on May 22. In response to market conditions, the People's Bank of China (PBOC) announced a 500 billion yuan (approximately $69.54 billion) one-year medium-term lending facility (MLF) operation on May 23 to ensure ample liquidity. The PBOC injected a net 90 billion yuan on May 22 and a net 36 billion yuan on May 23, bringing the weekly net injection to 460 billion yuan. Despite these liquidity measures, major stock indices fell in the afternoon session of May 23, with the Shanghai Composite Index down about 0.5% and the Hang Seng Index narrowing intraday gains to 0.3%. FTSE China A50 Index futures were down nearly 1% on the same day, reflecting cautious investor sentiment amid ongoing market volatility.

China’s auto industry extended its rebound in the first half of 2025, with nationwide vehicle production climbing 12.5% from a year earlier to 15.62 million units and sales rising 11.4% to 15.65 million, according to data released by the China Association of Automobile Manufacturers. It is the first time both metrics have exceeded 15 million units in the January-to-June period.

New-energy vehicles remained the main driver of growth. Output of battery-electric and plug-in hybrid models reached 6.97 million units, up 41.4% year-on-year, while sales rose 40.3% to 6.94 million. In June alone, NEV sales accelerated 26.7% from a year earlier, outpacing the broader market and underscoring robust consumer demand and continued policy support.

Read more

Chinese electric vehicle manufacturers reported strong delivery performances in the first half of 2025, highlighting sustained growth in the new-energy vehicle (NEV) sector amid increasing competition. XPeng Motors delivered 34,611 vehicles in June 2025, a 224% year-over-year increase, marking the eighth consecutive month with deliveries exceeding 30,000 units. XPeng's total deliveries for the second quarter reached a record 103,181 units, with first-half deliveries totaling 197,189 units, surpassing the entire previous year's deliveries. Li Auto delivered 36,279 vehicles in June 2025, representing a 24% decline year-over-year, with second-quarter deliveries totaling 111,074 units.

NIO Inc. reported a 71.2% quarter-over-quarter increase, delivering 24,925 vehicles in June, marking its second-highest monthly delivery on record. In contrast, Ford's U.S. electric vehicle sales declined by 31.4% year-over-year in the second quarter of 2025, with total sales of 16,438 units. Key Ford models included the Mustang Mach-E with 10,178 units sold (-19.5% YoY), F-150 Lightning with 5,842 units (-26% YoY), and E-Transit with 418 units (-88% YoY). Industry analysts noted that the record-breaking deliveries by Chinese NEV manufacturers underscore the sector's continued growth momentum despite intensifying competition.

Chinese carmakers tightened their grip on Europe in May, securing their highest-ever share of the region’s hybrid market and the largest slice of the electric-vehicle segment in ten months, according to industry data seen by Bloomberg. The gains deepen pressure on established European luxury marques already wrestling with price cuts and rapid model cycles from mainland competitors.

The growth story is echoed at home. Xpeng Motors said it delivered 34,611 vehicles in June, a 224% jump from a year earlier, lifting first-half shipments to 197,189—already ahead of its full-year 2024 total. Dongfeng Motor’s premium brand Voyah reported first-half sales of 56,128 vehicles, up 85% year-on-year, marking a fourth consecutive month with deliveries above 10,000 units.

Read more

Chinese automakers are increasingly targeting Africa's underdeveloped automotive market, focusing on electric and hybrid vehicles as they face export restrictions to the United States and Europe. With Africa's population exceeding one billion, these companies see an opportunity to expand by leveraging affordable pricing and local production capabilities. This strategic shift comes amid global trade barriers, prompting Chinese manufacturers to seek new markets and unlock Africa's untapped potential in the electric and hybrid vehicle segments.

Chinese automakers are increasingly targeting Africa's underdeveloped automotive market as they face export restrictions to the United States and Europe. The companies are focusing on electric and hybrid vehicles, leveraging affordable pricing and local production to tap into the continent's potential. Africa, with a population exceeding one billion, represents a significant new market opportunity amid global headwinds and overcapacity in Chinese automotive manufacturing. Some industry experts have raised concerns about Chinese automakers attempting to enter the U.S. market to offload excess production, questioning the necessity given existing supply from other global partners. Additionally, Chinese firms like CATL are encountering challenges in replicating supply chains abroad, particularly in Europe, which further underscores their strategic pivot towards Africa.

China’s Ministry of Commerce said it held an “in-depth” video conference on Thursday between Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Maros Sefcovic. The discussion focused on a range of trade-remedy cases, with particular attention to the electric-vehicle sector, the ministry said in a statement released Friday.

While neither side disclosed concrete concessions, both agreed to maintain technical exchanges and promote what Beijing described as the “healthy, stable development” of China-EU economic ties. The talks come as Brussels weighs possible anti-subsidy duties on Chinese EV imports, a move that has heightened trade tensions between the two economies.

China's consumer goods trade-in subsidy program, which offers up to 20,000 yuan ($2,780) for electric and fuel-efficient vehicle purchases, has been suspended in major cities across at least six provinces, including Guangdong and Henan, due to depleted funds. The surge in consumer participation has overwhelmed the stimulus program, causing funds to run low rapidly. Reports indicate that some subsidies were exploited through loopholes and corruption, such as dealers selling "zero-mileage used cars" to claim subsidies, raising questions about the accuracy of reported new electric vehicle sales. In response to concerns over the potential end of these subsidies, Beijing has confirmed the continuation of the program with an allocation of 138 billion yuan in central government funds planned for the second half of 2025, to be distributed in July and October. This move aims to sustain retail spending, which has increased amid government stimulus efforts, although some analysts caution that such spending relies on borrowing against future consumption.

Chinese automakers are accelerating efforts to become self-reliant in semiconductors, with BYD, Geely, SAIC Motor, Changan Automobile, Great Wall Motor and Li Auto preparing to launch passenger vehicles that use only domestically produced chips, Nikkei Asia reported. At least two of the companies aim to begin mass production of the fully localised models as soon as 2026, part of a broader push to reduce dependence on foreign technology suppliers.

Read more

Chinese electric vehicle manufacturer Xpeng Motors has unveiled its new G7 SUV, featuring up to three in-house developed Turing AI chips with a combined computing power exceeding 2,200 TOPS. The central Turing chip delivers 700 TOPS, approximately three times the performance of Nvidia's Orin chip currently used in Xpeng vehicles. Xpeng is also working to integrate these advanced chips into some Volkswagen models planned for launch in China next year. The company claims its self-designed Turing processors outperform those of US semiconductor leader Nvidia.

Xpeng's Chairman and CEO He Xiaopeng expressed ambitions for the startup to be among the first to introduce advanced intelligent assisted driving technology in Hong Kong. Meanwhile, Nvidia's stock has reached its highest closing price since January, benefiting from its position in the AI chip market. Xpeng joins a growing number of Chinese technology firms developing automotive AI chips, including Xiaomi, Huawei, BYD, Li Auto, Alibaba, Baidu, and ByteDance. Additionally, Toyota's China joint venture has become the first automotive partner to collaborate with both Xiaomi and Huawei.

Chinese auto dealerships have been engaging in a practice of selling new cars as if they were used vehicles to boost sales amid intense price competition. This tactic, referred to as "zero-mileage used cars," has drawn criticism from Chinese state media, which has called for a crackdown on such practices. Beijing has warned domestic carmakers to cease these sales-boosting tricks to avoid triggering a detrimental cycle that could harm the entire automotive industry. Industry insiders have described the current market conditions as "involution-style" competition, warning that an unchecked race to the bottom threatens the sector's long-term viability. In response, Chinese authorities plan to intensify inspections of high-profile and high-risk vehicle models. Additionally, the government is directing automakers to cultivate stable supply relationships to promote industry stability and sustainability.

The U.S. Securities and Exchange Commission (SEC), Wall Street's primary regulatory body, is moving to tighten regulations for foreign companies listed on American stock exchanges, with a particular emphasis on Chinese firms. The SEC noted that many Chinese companies have benefited from reduced disclosure requirements compared to their U.S. counterparts. This initiative follows observations that the composition of foreign issuers has changed notably since the last amendment to the foreign private issuer rules in 2003. The SEC is considering revisions to the eligibility criteria for foreign private issuers to address these developments and enhance investor transparency.

XPeng Motors has partnered with Huawei to integrate the Chinese tech giant's advanced augmented reality heads-up display (AR HUD) into its upcoming G7 electric SUV. The AR HUD system, described as one of the industry’s most powerful in terms of hardware and software, will provide drivers with real-time information including smart driving data, speed, and road conditions. This technology is set to be unveiled at a launch event and represents a collaboration aimed at enhancing in-car display solutions. Meanwhile, in the autonomous vehicle sector, Waymo, Google's driverless taxi company, has surpassed 10 million rides, marking a milestone in the adoption of autonomous ride-hailing services.

Waymo’s presence is notably strong in San Francisco, where autonomous vehicles handle approximately 27% of ride-hailing trips. Recent data indicates Waymo has overtaken Lyft in market share in San Francisco, highlighting its growing influence in the ride-share market. Industry forecasts by Goldman Sachs predict that robotaxi numbers in China could increase dramatically from the current 4,100 to nearly 2 million within the next decade. Waymo plans to double its rides to 20 million as self-driving technology reaches a tipping point. The company’s emphasis on safety and trust continues to support its expansion amid rising competition from players like Tesla. Additionally, other autonomous vehicle advancements include Pony.ai’s Gen-7 robotaxi road tests in China and Nuro’s demonstration of autonomous driving capabilities in complex scenarios. Overall, these developments underscore rapid progress in both in-car augmented reality technology and autonomous ride-hailing services globally.

China's service sector expanded at a faster pace in May, with the Caixin Services Purchasing Managers' Index (PMI) rising to 51.1 from 50.7 in April, surpassing expectations of 51.0. This growth was driven by an increase in new orders and was observed despite ongoing uncertainties related to the United States' tariff hikes. However, the Caixin Composite PMI, which includes both manufacturing and services, declined to 49.6, marking its lowest level since December 2022. Meanwhile, China's new energy vehicle (NEV) retail sales surged 30% year-on-year to 1.06 million units in May, the first time this year that monthly sales exceeded one million units. In the UK, new car registrations increased by 1.6% year-on-year in May to 150,070 units, with electric vehicle discounts contributing to the recovery in sales. The UK service sector also returned to growth as tariff concerns eased.

China's new energy vehicle (NEV) market showed robust growth in May 2025, with wholesale sales reaching 1.24 million units, a 38% increase year-on-year and a 9% rise month-on-month, according to the China Passenger Car Association (CPCA). Retail sales of NEVs also climbed 30% year-on-year to 1.06 million units, marking the first time this year that retail NEV sales exceeded one million units. Overall retail car sales in China grew 13% year-on-year to 1.93 million units, with a 10% increase month-on-month. Meanwhile, the UK new car market experienced a 1.6% year-on-year increase in registrations in May, totaling 150,070 units. The Society of Motor Manufacturers and Traders (SMMT) attributed the UK sales recovery partly to electric vehicle discounts attracting buyers.

Chinese shares traded in Hong Kong declined on Monday amid escalating US-China trade tensions that dampened investor sentiment. The Hang Seng Index opened down 1.06%, while the Hang Seng Tech Index fell 3% to 5,015.22. The Hang Seng Automobile Index experienced a sharper drop, falling 2% after initially opening down 1.5%. Major car manufacturers listed in Hong Kong saw their shares decline, with BYD Co.

(01211 HK) falling nearly 3%, XPeng Motors (09868 HK) and Li Auto (02015 HK) each dropping more than 1.5%, and NIO Inc. (09866 HK) down 1.25%. The broader market weakness reflects concerns over the impact of ongoing trade tensions between the United States and China.

Chinese electric vehicle manufacturer Xpeng has introduced new variants of its Mona M03 model, including the Max and Plus versions, priced between RMB 109,800 and RMB 139,800 (approximately $18,040 to $20,000). The Max variant features advanced AI-powered driving capabilities comparable to Tesla's Full Self-Driving (FSD) system, equipped with a dual-Nvidia Orin SoC delivering 508 TOPS and offering Level 2+ advanced driver-assistance systems (ADAS) across the lineup. The launch was met with strong demand, as Xpeng received 12,566 firm orders within the first hour, with the Max variant accounting for 83% of these orders. The new Mona M03 Max also includes the free Turing smart driving system, enhancing its appeal in the affordable electric vehicle segment in China.

Russian President Vladimir Putin has signed into law a mandate requiring all taxi fleets in Russia to use domestically manufactured vehicles. The new regulation restricts the models eligible for use as taxis to seven, comprising three models produced by Lada and four Chinese car models assembled within Russia. This law aims to enforce a localization requirement for vehicles operating as taxis, effectively banning Western car models from taxi services in the country.

Shares of Chinese electric vehicle maker Xpeng Inc. (NYSE: XPEV) surged over 13% following the release of its first-quarter 2025 earnings report, which exceeded market expectations. The company reported strong revenue growth and robust vehicle deliveries, with a forecast to turn profitable by the fourth quarter. Xpeng also announced plans to introduce humanoid robots for industrial and commercial applications in 2026.

Meanwhile, Advance Auto Parts (NYSE: AAP) saw its stock price rise by more than 50% after reporting first-quarter 2025 results that beat revenue and earnings per share estimates despite a 6.9% year-over-year revenue decline to $2.58 billion. The company posted an adjusted EPS loss of $0.22, better than the expected loss of $0.78, and reaffirmed its full-year 2025 guidance with projected revenue between $8.4 billion and $8.6 billion and EPS ranging from $1.50 to $2.50. The retailer highlighted ongoing store footprint optimization and eight consecutive weeks of same-store sales growth in its professional segment. Notably, Advance Auto Parts maintained its earnings outlook despite the challenging tariff environment, which has not materially impacted its financial guidance. Both companies’ shares saw significant gains in trading, reflecting investor confidence in their growth prospects and strategic plans.

Chinese electric vehicle manufacturer Xpeng plans to launch humanoid robots designed for industrial and commercial applications by 2026, aiming to achieve industry-leading intelligence levels. The company also expects to become profitable by the fourth quarter of 2025. Following a positive first-quarter financial performance, Macquarie upgraded Xpeng's stock rating to Outperform. Additionally, Xpeng is targeting the consumer market with a flying car product set for release in 2026, reflecting growing investor interest in electrified aircraft and advanced mobility solutions.

Chinese and Hong Kong stock markets experienced mixed performance between May 21 and May 23, 2025. On May 21, the Shanghai Composite Index rose 0.21%, the Shenzhen Component Index increased 0.44%, and the Chinext Index gained 0.83%. The Hang Seng Index and Hang Seng Tech Index also advanced by 0.62% and 0.51%, respectively. However, on May 22, these indices reversed course with the Shanghai Composite Index falling 0.22%, Shenzhen Component Index down 0.72%, and Chinext Index declining 0.96%.

The Hang Seng Index dropped 1.19%, and the Hang Seng Tech Index fell 1.7%, with notable stock movements including XPeng rising nearly 6% and Baidu declining over 4%. The Beijing Stock Exchange 50 Index extended its decline to 6% during the afternoon session on May 22. In response to market conditions, the People's Bank of China (PBOC) announced a 500 billion yuan (approximately $69.54 billion) one-year medium-term lending facility (MLF) operation on May 23 to ensure ample liquidity. The PBOC injected a net 90 billion yuan on May 22 and a net 36 billion yuan on May 23, bringing the weekly net injection to 460 billion yuan. Despite these liquidity measures, major stock indices fell in the afternoon session of May 23, with the Shanghai Composite Index down about 0.5% and the Hang Seng Index narrowing intraday gains to 0.3%. FTSE China A50 Index futures were down nearly 1% on the same day, reflecting cautious investor sentiment amid ongoing market volatility.