Global Automotive Industry Overview

Introduction

The global automotive industry continues to navigate a period of accelerated transformation, shaped by rapid advances in automation, software integration and electrification, alongside shifting manufacturing realities and evolving regulatory frameworks. Strategic priorities across OEMs are increasingly influenced by capital allocation decisions, digital capability development and the need to balance innovation with operational resilience.

At the same time, markets across the Middle East and Africa are emerging as important centres for mobility innovation, infrastructure deployment and new brand activity. From autonomous testing and EV ecosystem expansion to retail network growth and policy reform, regional developments are reinforcing the importance of execution, localisation and long-term market readiness. The following updates capture the key global and regional developments shaping the automotive landscape.

Tesla Commits US$20bn to Robotics as Premium Models Are Axed

Tesla has announced a US$20bn investment in robotics, reinforcing its long-term focus on automation and AI-driven systems. The decision coincides with the discontinuation of the Model S and Model X in several markets, signalling a strategic reprioritisation. Capital is increasingly being redirected away from legacy vehicle lines towards future technologies. The move underscores Tesla’s ambition to extend beyond automotive manufacturing. Execution risk remains as spending scales rapidly ahead of clear commercial returns.

UK Vehicle Production Falls to 73-Year Low in 2025

UK vehicle production has declined to its lowest level since 1952, reflecting sustained structural and economic pressures. Output has been impacted by weak domestic demand, model changeovers and reduced export volumes. Electrification investment continues but has yet to offset near-term contraction. Industry leaders warn of competitiveness challenges without policy support. Recovery is expected to remain gradual rather than cyclical.

Volkswagen Begins Production of China Zonal Architecture

Volkswagen has started production using a new zonal electrical architecture in China. The approach simplifies vehicle wiring and supports faster software integration. China remains a lead market for Volkswagen’s digital transformation. Localised architectures are becoming central to competitiveness. Broader global adoption is expected over time.

Genesis Unveils X Skorpio Off-Road Concept

Genesis has revealed the X Skorpio off-road concept vehicle. The design explores rugged capability alongside luxury positioning. Concept vehicles continue to test brand elasticity. Market response will inform future product direction. Production intent has not been confirmed.

Cupra Joins VW Group Road Safety Data Initiative

Cupra has joined the Volkswagen Group’s road safety data-sharing programme. Vehicle-generated data will support hazard identification. Connected data ecosystems are expanding across OEM groups. Privacy and data governance remain central concerns. The initiative reinforces collaborative safety efforts.

Mercedes-Benz to Debut Electric GLC at CES 2026

Mercedes-Benz will unveil the electric GLC at CES 2026, signalling a major step in electrifying one of its most commercially important SUV lines. The model is expected to showcase advances in efficiency, digitalisation and software integration. Mercedes continues to reposition CES as a technology-led platform rather than a traditional motor show. The electric GLC will play a central role in the brand’s mid-size EV strategy. Its debut underscores the shift toward tech-centric vehicle launches.

XPeng and Peking University Paper Accepted by AAAI

XPeng and Peking University have had a joint research paper accepted by the AAAI conference, highlighting progress in AI-driven mobility research. The collaboration underscores XPeng’s focus on software, algorithms and intelligent driving systems. Academic partnerships are becoming increasingly important in autonomous development. The recognition enhances XPeng’s credibility in global AI research circles. It also supports China’s broader push into advanced automotive AI.

Golf GTI Turns 50 as Volkswagen Unveils Electric GTI

Volkswagen has marked the 50th anniversary of the Golf GTI by unveiling an electric GTI concept. The move signals the brand’s intent to carry performance heritage into the electric era. Electrification is being positioned as an evolution rather than a departure from GTI identity. The concept reinforces Volkswagen’s commitment to emotional, driver-focused EVs. It also previews how iconic sub-brands may transition to electric platforms.

BYD Surpasses Tesla in 2025 EV Sales

BYD has reportedly surpassed Tesla in global EV sales in 2025, marking a significant industry milestone. The shift reflects BYD’s strength across multiple price segments and regions. Vertical integration and domestic scale have supported sustained growth. Tesla remains strong in premium and technology perception, but competition is intensifying. The development underscores China’s growing influence in the global EV market.

Cadillac Concept Receives International Design Recognition

Cadillac’s Elevated Velocity concept has received international recognition through a major design award. Judges cited innovation, proportion and future-focused design language. The accolade supports Cadillac’s premium repositioning strategy within its electric portfolio. Design cues from the concept may influence future production models. The recognition reinforces the role of design leadership as a competitive differentiator.

Hyundai Union Warns Humanoid Robots Could Threaten Jobs

Hyundai’s labour union has raised concerns that humanoid robots could displace manufacturing jobs. The warning highlights growing tension between automation ambitions and workforce security. Labour relations remain sensitive as automation accelerates. Balancing innovation with employment protection will be critical. Union response is likely to shape the pace of adoption.

Microsoft to Provide Cloud and AI Support for Mercedes Formula One

Microsoft will provide cloud and artificial intelligence solutions to support Mercedes Formula One operations. The partnership enhances data processing, simulation and performance analytics. Technology integration continues to play a decisive role in motorsport competitiveness. The collaboration reflects growing crossover between enterprise technology and automotive performance. AI capability is increasingly viewed as a strategic advantage.

Honda Earns First North America Carbon Certification

Honda has secured its first carbon certification in North America, highlighting progress in emissions reduction and sustainability reporting. The certification recognises manufacturing and operational improvements across selected facilities. Honda continues to position itself as a leader in pragmatic decarbonisation rather than rapid electrification alone. The move supports regulatory compliance and brand credibility. Sustainability credentials are becoming increasingly influential in fleet and consumer purchasing decisions.

Volvo EX60 to Debut with Google Gemini AI Assistant

Volvo has confirmed the EX60 will debut with Google’s Gemini AI assistant integrated into the vehicle interface. The move enhances voice interaction, contextual intelligence and in-car digital services. Volvo continues to deepen its partnership with Google to differentiate through software. Advanced AI is becoming a core element of premium vehicle positioning. Software-defined vehicles are reshaping customer expectations.

BASF Report Highlights Shift Towards Green Car Finishes

BASF reports growing demand for sustainable automotive coatings and environmentally friendly finishes. OEMs are increasingly prioritising low-emission materials and circular production processes. Colour trends are also evolving alongside sustainability objectives. The findings reflect broader regulatory and consumer pressure for greener manufacturing. Suppliers are adapting product portfolios to meet OEM sustainability targets.

ECARX Secures US$45.6m from Geely Holding

ECARX has secured US$45.6m in funding from Geely Holding to accelerate smart cockpit development. The investment strengthens ECARX’s role within Geely’s technology ecosystem. Software and in-vehicle intelligence remain high-growth areas. OEM-backed tech firms are gaining strategic importance. Vertical integration in software is accelerating.

Mercedes-Benz CLA Wins Car of the Year 2026

The Mercedes-Benz CLA has been awarded Car of the Year 2026. Judges highlighted its design, efficiency and advanced technology integration. The recognition reinforces Mercedes-Benz’s premium positioning in an increasingly competitive market. Electrified powertrains were a key contributor to the model’s success. The award strengthens brand momentum heading into the next product cycle.

IP is essential.

Regional Automotive Industry Update (MENA & Africa)

Apollo Go Receives Dubai Driverless Testing Permit

Apollo Go has received approval to conduct driverless testing in Dubai. The permit supports autonomous mobility trials. Dubai continues to promote innovation-friendly regulation. Regulatory frameworks are evolving rapidly. The city strengthens its smart mobility leadership.

Q Mobility Activates Paid Parking System in Musaffah

Q Mobility has activated a paid parking system in Musaffah. The initiative supports traffic flow and space management. Digital payment solutions underpin the rollout. Urban mobility efficiency is a key objective. Smart infrastructure adoption continues to grow.

Automatic Cars Dominate South Africa Market

Automatic transmissions now dominate vehicle sales in South Africa. Manual vehicle sales continue to decline steadily. Urbanisation is influencing consumer preferences. Convenience and comfort are key drivers. Market structures are shifting accordingly.

Porsche Carrera Cup Middle East Returns for 2026

The Porsche Carrera Cup Middle East will return in 2026. Dubai Autodrome will host the championship. Motorsport supports brand prestige and visibility. Regional fan engagement is expected to grow. Performance credentials are reinforced.

Autorun Expands Omoda, Jaecoo and iCaur Presence in Dubai

Autorun has expanded its brand presence with a new showroom in Dubai. The location strengthens retail visibility and access. Multi-brand strategies support market penetration. Physical footprint expansion remains a priority. Customer reach continues to improve.

Tesla Introduces Most Affordable Vehicle in Saudi Arabia

Tesla has introduced its most affordable model in Saudi Arabia. The move supports broader market accessibility. Pricing strategy targets higher adoption rates. Infrastructure readiness supports demand. EV penetration continues to rise.

Ajman Unveils Northern Emirates’ First Integrated EV Charging Hub

Ajman has unveiled the Northern Emirates’ first integrated EV charging hub. The project supports sustainable mobility goals. Public-private collaboration enabled delivery. Infrastructure development remains critical. Regional EV readiness continues to expand.

Saudi EV Maker Ceer Secures Dürr Modular Paint Shop

Ceer has partnered with Dürr to implement a modular paint shop at its Saudi manufacturing facility. The project supports localisation and industrial capability development. Ceer is central to Saudi Arabia’s EV ambitions. Advanced manufacturing infrastructure underpins long-term competitiveness. The Kingdom continues to invest heavily in automotive industrialisation.

CATL Opens Aftermarket Facility in Saudi Arabia

CATL has launched an aftermarket service facility in Saudi Arabia to support battery lifecycle management. The move strengthens regional presence and customer support capabilities. Aftermarket services are becoming increasingly important in EV adoption. Localised support improves operational confidence. Battery servicing infrastructure is expanding across the region.

Kuwait Invites EOIs for Mega Motor Auction PPP

Kuwait has invited expressions of interest for a large-scale motor auction and showroom PPP project. The initiative aims to modernise automotive retail infrastructure. Public-private collaboration is central to the plan. The project reflects regional investment in organised automotive marketplaces. Structural reforms continue across the sector.

Omoda and Jaecoo Partner with Dubai Police Esaad Programme

Omoda and Jaecoo have partnered with Dubai Police’s Esaad programme to offer exclusive member benefits. The initiative supports brand visibility and community engagement. Strategic partnerships remain key to market entry in the UAE. Brand awareness is critical in competitive segments. Local alliances enhance customer trust.

Nissan Expands Thierry Sabbagh’s Regional Leadership Remit

Nissan has expanded Thierry Sabbagh’s responsibilities to include India alongside Middle East, KSA and CIS markets. The move reflects regional integration priorities. Leadership consolidation supports operational alignment. Emerging markets remain strategically linked. Regional scale is increasingly important for OEM efficiency.

Kuwait Plans Unified Car Rental Contracts Reform

Kuwait’s Ministry of Commerce and Industry plans to unify car rental contracts under new regulations. The reform aims to improve transparency and consumer protection. Standardisation supports market confidence. Regulatory modernisation is progressing across the region. Mobility services continue to evolve structurally.

South Africa Highlights Key Chinese Automotive Trends

South Africa has identified four major Chinese automotive trends shaping the local market. These include affordability, electrification and rapid model cycles. Chinese brands are increasing competitive pressure. Emerging markets are adapting quickly to new entrants. Market dynamics are shifting rapidly.

BMW Group Middle East Delivers Strong 2025 Growth

BMW Group Middle East reported strong growth in 2025, building on record momentum. Performance was driven by premium demand and electrified models. The region remains strategically important for luxury OEMs. Customer experience and product mix supported results. Premium segments continue to outperform broader markets.

Tesla Commences Cybertruck Deliveries in the UAE

Tesla has officially begun delivering the Cybertruck in the UAE, marking a regional milestone for the model. The launch reflects strong local interest in premium electric vehicles. The UAE remains a key market for early adoption. The rollout supports Tesla’s Middle East expansion strategy. It also signals growing acceptance of unconventional EV design.

MG Motor Becomes Official Automotive Partner of the Dubai Marathon

MG Motor has signed on as the official automotive partner of the Dubai Marathon. The partnership enhances brand visibility and community engagement. It aligns the brand with performance and endurance values. Sponsorship activity continues to support regional brand building. The move strengthens MG’s marketing footprint in the UAE.

Honda Showcases Brand Evolution Through Immersive Dubai Experience

Honda has launched an immersive brand experience in Dubai showcasing its past, present and future. The activation focuses on innovation, mobility and sustainability themes. It engages customers beyond traditional retail environments. Experiential marketing continues to gain importance. The initiative reinforces Honda’s regional brand narrative.

Al Habtoor Motors Rolls Out Electric Fuso eCanter in the UAE

Al Habtoor Motors has introduced the electric Fuso eCanter to the UAE market. The rollout targets commercial and logistics applications. It supports broader sustainability objectives. Commercial EV adoption continues to gain traction. The launch reflects growing confidence in electric fleet solutions.

STEER AI Unveils Autonomous Off-Road Vehicle at UMEX

STEER AI has unveiled its XRIFT autonomous vehicle at UMEX in Abu Dhabi. The platform is designed for off-road and specialist environments. It demonstrates regional capability in autonomous systems. Target applications include defence and industrial use. The launch highlights growing Gulf investment in advanced mobility.

Karwa Expands Vehicle Supply into the Omani Market

Karwa has expanded vehicle supply into Oman, supporting regional transport demand. The move strengthens cross-border fleet operations. It reflects continued investment in regional mobility solutions. Fleet expansion remains a key growth lever. The initiative supports broader GCC transport integration.

Al Ghurair Signs Exclusive Agreement to Launch Karry Brand in the UAE

Al Ghurair has signed an exclusive distribution agreement with Chery Group to introduce the Karry brand in the UAE. The partnership focuses on commercial mobility solutions. It strengthens portfolio diversification. Chinese OEM partnerships continue to gain traction in the region. The agreement signals confidence in commercial vehicle demand.

Chery South Africa to Acquire Nissan Manufacturing Facility

Chery’s South African operation plans to acquire Nissan’s local manufacturing facility, accelerating its localisation strategy. The acquisition enables rapid scale-up using existing infrastructure and workforce capabilities. It strengthens Chery’s long-term commitment to the African market. Local manufacturing supports cost control and regional responsiveness. The move highlights the expanding global manufacturing footprint of Chinese OEMs.

Hoo Gon Kim Appointed President of Kia Middle East and Africa

Kia has appointed Hoo Gon Kim as President of its Middle East and Africa operations. The appointment signals a focus on regional growth and operational alignment. Leadership continuity supports Kia’s expanding model portfolio and EV ambitions. The MEA region remains strategically important for volume and brand development. The move reflects increased executive attention on emerging markets.

Lepas Unveils New Design Language Ahead of UAE Launch

Lepas has revealed a new design language ahead of its UAE market entry. The announcement positions the brand around modern styling and regional relevance. Design differentiation is critical in a crowded market. The UAE serves as a strategic launch platform for broader Middle East expansion. The move reflects rising competition from new and emerging brands.

GWM Returns to Liwa Festival 2026 as Gold Sponsor

GWM will return to the Liwa Festival 2026 as a gold sponsor, showcasing the Tank 700 and Hi4-T technology. The sponsorship reinforces GWM’s off-road and adventure positioning. Regional events play a key role in brand engagement. The Tank lineup continues to anchor GWM’s Middle East strategy. The appearance highlights localisation through lifestyle alignment.

Dubai RTA Records Passengers on New Year’s Eve

Dubai’s Roads and Transport Authority recorded strong passenger numbers on New Year’s Eve, reflecting high public transport utilisation. The data underscores the importance of integrated mobility planning during peak events. Public transport remains central to urban movement efficiency. The performance supports Dubai’s smart mobility objectives. It also highlights continued population and tourism growth.

UAE Korean Used Car Market Trends

The UAE’s Korean used car market continues to show steady demand driven by value, reliability and parts availability. Korean brands maintain strong residual values in the region. Used car dynamics reflect shifting affordability preferences. The segment benefits from broad consumer trust. It remains a key contributor to overall market liquidity.

Dubai RTA Auction Records BB12 Plate Sale

Dubai RTA has recorded a landmark sale of the BB12 number plate at auction. Premium plates continue to attract strong interest from collectors and investors. The auctions reflect discretionary spending confidence. Number plates remain a unique asset class in the UAE. The result highlights the cultural and symbolic value attached to vehicle registration.

Al Masaood Opens Smart Parts Distribution Centre in KEZAD

Al Masaood Automobiles has launched a smart, system-led parts distribution centre in KEZAD. Automation enhances inventory accuracy and delivery speed. The facility supports regional aftersales growth. Digital logistics are becoming a competitive differentiator. Expansion aligns with rising service demand.

South Africa Rejects Steep Import Duty Hikes, BMW CEO Says

South Africa’s auto sector is not seeking sharp import duty increases, according to BMW’s CEO. Industry stability is prioritised over protectionism. Export competitiveness remains critical. Policy certainty supports long-term investment. Dialogue with government continues.

Saudi Ministry Recalls 265 Skoda Vehicles Over Airbag Defect

Saudi authorities have recalled 265 Skoda vehicles due to an airbag defect. The recall reflects continued monitoring of component safety. Limited volumes reduce market impact. Regulatory enforcement remains proactive. OEM compliance is essential for brand trust.

Bentley Emirates Launches Continental GT Supersports in Dubai

Bentley Emirates has unveiled the new Continental GT Supersports in Dubai. The launch targets high-net-worth regional buyers. Performance luxury remains resilient in the Middle East. Limited editions support brand exclusivity. Regional demand continues to outperform global averages.

Dubizzle Cars Awards 2025 Celebrate UAE Automotive Excellence

The Dubizzle Cars Awards 2025 have recognised excellence across the UAE automotive sector. Awards highlight performance in sales, service and digital platforms. The event reflects growing market maturity. Consumer-facing recognition is gaining influence. Brand visibility remains key.

Mynm Ford Opens First 3S Showroom in Taif

Mynm Ford has opened its first 3S showroom in Taif. The facility integrates sales, service and spare parts. Expansion supports regional accessibility. Physical retail remains relevant alongside digital channels. Network growth underpins market penetration.

Closer India-EU Ties Reinforce Renault Investment Strategy

Strengthening India-EU relations are reinforcing Renault’s commitment to both regions. Trade alignment supports supply chain resilience. Investment decisions reflect geopolitical considerations. Market diversification remains a strategic priority. Policy stability supports long-term planning.

SAIC Motor Appoints Jacky Xu as Middle East Managing Director

SAIC Motor has appointed Jacky Xu as Managing Director for the Middle East. Leadership changes support regional growth ambitions. Local market understanding is critical for Chinese OEMs. The appointment signals increased regional focus. Expansion is expected across multiple brands.

Rafid Automotive Solutions Partners with FRC on Saudi Exports

Rafid Automotive Solutions has partnered with FRC to support vehicle exports to Saudi Arabia. The agreement enhances logistics and compliance capabilities. Cross-border trade facilitation remains a growth enabler. Saudi demand continues to attract exporters. Execution will determine scale.

K2 and WeRide to Operate Autonomous Buses in Abu Dhabi

K2 and WeRide will deploy autonomous buses in Abu Dhabi. The project supports smart mobility objectives. Controlled environments enable early adoption. Public acceptance remains a key variable. The initiative positions Abu Dhabi as a regional AV hub.

Porsche Middle East and Africa Posts Best Sales in 12 Years

Porsche Middle East and Africa has reported its strongest sales performance in 12 years. Demand remains robust across luxury segments. Product mix and regional wealth support growth. Electrified models are contributing increasingly. Momentum is expected to continue.

Conclusion

The developments across global and regional markets highlight an automotive industry that is no longer evolving along a single trajectory. Robotics, software-defined architectures, AI integration and sustainability are advancing in parallel, while manufacturing resilience, workforce dynamics and regulatory alignment continue to shape execution outcomes. Strategic focus is increasingly shifting from product-led differentiation toward systems capability, operational readiness and long-term credibility.

For OEMs, Dealers and Importers operating across the Middle East, Africa and global markets, the implications are clear. Competitive advantage will be defined not only by innovation ambition, but by the ability to industrialise change, manage transition risk and deliver consistent customer experiences. As technology, infrastructure and market structures mature, disciplined execution and strategic clarity will remain the decisive factors shaping performance in the next phase of automotive transformation.

At AMENA, we partner with leading OEMs and Dealer/Importer networks across the MENA region to drive measurable performance across Sales, Aftersales, Parts, CSI, and NPS. Leveraging deep industry expertise, we deliver tailored strategies that elevate customer experience, optimise operational KPIs, and enhance brand loyalty.

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