Global and MENA Automotive Industry January 2026 Update: EVs, Autonomy, AI and Market Shifts
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
Global and MENA Automotive Industry December 2025 Update: EV Strategy Shifts, Autonomous Mobility & Software-Defined Vehicles
Introduction As the global automotive industry pushes deeper into 2026 planning cycles, momentum is concentrating around three forces: autonomy moving from pilots to scalable services, electrification strategies becoming more selective and market-specific, and software-defined platforms reshaping how value is created across the vehicle lifecycle. OEMs and suppliers are no longer competing on hardware alone—AI cockpits, digital services, battery circularity and data-driven operations are increasingly defining brand differentiation, margin protection and long-term customer loyalty. In parallel, the Middle East & Africa are evolving from adoption markets into active testbeds for next-generation mobility. From Dubai’s robotaxi progress and premium experience-led retail expansion, to Saudi Arabia’s accelerating electrification and talent-development agenda, the region is attracting global partnerships and investment across EV infrastructure, autonomy deployment and advanced aftermarket capability. This update captures the most important global and regional signals shaping the automotive landscape—where strategic alliances, regulatory direction and execution readiness will determine who leads the next phase of mobility transformation. Momenta, Grab Team Up to Scale Autonomous Driving in Southeast Asia Momenta and Grab announced a strategic partnership to accelerate autonomous driving deployment across Southeast Asia. Grab’s strategic investment in Momenta signals deeper integration beyond pilot programmes, reflecting Chinese autonomous-driving firms’ overseas expansion as domestic competition intensifies. For Grab, the partnership strengthens its long-term roadmap toward hybrid mobility models combining human, remote and autonomous operations. Bosch Targets €2bn in AI Cockpit Sales by 2030 Bosch set an ambition to generate €2bn in annual revenue from AI-enabled cockpit systems by 2030. The strategy focuses on intelligent, software-led in-car experiences as the cockpit becomes a central value battleground in software-defined vehicles. Rising OEM demand for scalable digital platforms underpins the shift toward recurring software and services revenue. Mercedes-Benz to Premiere All-Electric VLE in 2026 Mercedes-Benz confirmed the all-electric VLE will debut in March 2026, representing a flagship step in its electric van strategy. Premium MPVs and people-movers are gaining importance as Mercedes aims to assert leadership in electric vans. The launch will set future design and technology direction for the segment. BMW Opens Battery Recycling Centre in Bavaria BMW opened a battery recycling facility in Bavaria to support material recovery and circular-economy objectives. The centre strengthens supply-chain resilience as battery lifecycle responsibility gains regulatory focus. The move aligns sustainability goals with long-term industrial strategy. China Moves to Curb EV Price Wars Through Draft Regulatory Reforms Chinese regulators have drafted new rules aimed at ending aggressive EV price competition that has compressed margins across the industry. The proposals target unfair pricing practices and excessive discounting, signalling a shift from growth-at-all-costs toward sustainable profitability in the world’s largest EV market. Rivian Unveils In-House AI and Autonomy Technology Rivian revealed proprietary AI and autonomous-driving technology developed entirely in-house, reducing reliance on third-party suppliers and strengthening vertical integration. New hardware and software platforms will underpin future ADAS and autonomy features, with subscription-based services forming part of Rivian’s long-term revenue strategy. Lotus Confirms First Plug-In Hybrid Model for 2026 Lotus announced its first plug-in hybrid vehicle for launch in 2026, marking a shift from its earlier all-electric positioning. Hybrid technology is being introduced to broaden market appeal and flexibility, with China expected to play a key role in the rollout. Changan Reaches 30 Million Vehicle Production Milestone Changan achieved cumulative production of 30 million vehicles, reflecting decades of manufacturing growth and scale. Recent momentum has been driven by new-energy vehicles and technology-focused models, supporting ambitions for wider global expansion. Stellantis Deepens Partnership with Cox Automotive Across Europe Stellantis expanded its strategic collaboration with Cox Automotive to strengthen vehicle remarketing and digital services across Europe. The partnership supports efficiency, pricing accuracy and inventory optimisation, aligning with the group’s focus on operational excellence and margin protection. Audi Expands Premium Charging Hub Network in Düsseldorf Audi opened an additional high-power charging hub in Düsseldorf, combining rapid charging with premium customer amenities. Urban charging infrastructure remains critical to accelerating EV adoption, with premium charging experiences emerging as a competitive differentiator. Stellantis and Bolt Partner on Autonomous Vehicle Development Stellantis partnered with Bolt to advance autonomous vehicle deployment, focusing on testing and validation in urban mobility use cases. Ecosystem collaboration continues to play a central role in scaling autonomous technologies. Lexus Expands RZ Line-Up with F Sport Performance Variant Lexus expanded its RZ electric SUV range with the introduction of an F Sport Performance variant. The move enhances driving engagement while retaining premium positioning and broadening choice across power and performance levels. Hyundai Breaks Ground on Battery Research Facility Hyundai commenced construction of a major battery research facility, reinforcing its commitment to next-generation energy storage and deeper control over core EV technologies. The investment supports long-term electrification leadership and supply-chain security. JLR Trials Drones to Cut Factory Inspection Time JLR’s drone-based inspection trials significantly reduce factory-check durations while improving workplace safety. The initiative reflects a broader push toward digitised, automated manufacturing environments across factories and logistics operations. trinamiX Unveils Wide Field-of-View Dot Projector trinamiX introduced a wide-field dot projector enabling advanced 3D sensing for in-cabin monitoring, facial recognition and augmented-reality applications. The technology supports growing demand for enhanced safety and human–machine interaction. Regional Highlights: Middle East & Africa Binghatti and Mercedes-Benz Unveil Branded City Project in Dubai Binghatti and Mercedes-Benz unveiled plans for a Mercedes-Benz branded city in Dubai. The project represents a major step in branded real-estate evolution. It elevates automotive branding into lifestyle and urban development. Dubai remains a launchpad for luxury innovation. The project strengthens Mercedes-Benz’s brand extension strategy. Toyota Egypt Partners on Smart Storage Solutions Toyota Egypt signed a cooperation agreement for automated storage solutions. The partnership targets improved warehouse efficiency. Automation supports cost, speed and safety improvements. The move expands Toyota Egypt’s industrial solutions portfolio. Smart logistics demand continues to rise across the region. Al Jomaih and Shell Showcase Lubricant Innovation in Riyadh Al Jomaih and Shell highlighted lubricant technologies at the Riyadh Motor Show. The showcase focused on premium and advanced lubrication solutions. Aftersales categories are being positioned as mobility technology. The event aligned with Saudi Vision 2030 themes.
AMENA Auto Monthly Review – May 2025
Global & MENA Automotive Industry Monthly Update – May 2025 Introduction May 2025 was a pivotal month for the global automotive industry, marked by the acceleration of electrification, leadership changes, and deeper integration of artificial intelligence across vehicle development, manufacturing, and customer experience. In North America and Europe, automakers advanced EV infrastructure and AI adoption, while in the MENA region, governments and private players launched groundbreaking initiatives—from autonomous taxis in Saudi Arabia to EV innovation hubs in Dubai. This report captures the most strategic developments shaping the future of mobility, region by region. Global News Antonio Filosa Named New Stellantis CEO Stellantis has appointed Antonio Filosa as Chief Executive Officer, effective 23 June 2025. With 25 years at the company, Filosa brings operational and strategic experience as the group navigates electrification and global trade pressures. His appointment signals a focus on continuity and deep internal expertise amid a shifting auto landscape. Filosa is expected to steer Stellantis through regulatory complexity and EV transformation. Hybrid Sales Climb as Consumers Seek Balanced Electrification Hybrid vehicles continue to gain traction in the U.S. amid fluctuating EV momentum, now accounting for 22% of all light-duty vehicle sales. Consumers are gravitating toward hybrids as a cost-effective alternative. Hybrids are emerging as the sweet spot for buyers caught between rising fuel prices and charging limitations. Their growing share signals shifting consumer priorities in the transition to full electrification. Rolls-Royce Unveils Bespoke Phantom ‘Goldfinger’ for 100-Year Anniversary Rolls-Royce has revealed a one-off Phantom ‘Goldfinger’ edition at Concorso d’Eleganza Villa d’Este. Inspired by the 1964 James Bond film, the car celebrates a century of the Phantom nameplate with timeless design and craftsmanship. The bespoke model fuses cinematic glamour with the marque’s hallmark luxury. It serves as a rolling tribute to Rolls-Royce’s enduring legacy of automotive excellence. XPeng Launches MONA M03 Max: Affordable EV with Advanced AI Capabilities XPeng has launched the MONA M03 Max, an electric hatchback priced around $20,000, featuring autonomous driving functions typically reserved for premium models. With over 120,000 units of the MONA series delivered, XPeng continues its push to democratise smart mobility. The model marks a breakthrough in bringing AI-powered autonomy to the mass market. XPeng’s rapid delivery volumes reflect strong consumer appetite for tech-savvy, affordable EVs. Audi Expands Use of AI in Production and Logistics Audi is advancing over 100 artificial intelligence projects aimed at increasing production quality and operational efficiency. From generative AI to real-time quality monitoring, the initiative reflects Audi’s commitment to manufacturing innovation. The brand is redefining precision through AI, reducing waste and elevating consistency. Digital transformation is now central to Audi’s future factory ecosystem. GM Appoints Sterling Anderson as Chief Product Officer Sterling Anderson joins GM to lead product development across EV and ICE vehicles. A veteran of Tesla and Aurora, he will help drive GM’s autonomous mobility ambitions. His expertise bridges legacy engineering and future-focused innovation. Anderson’s arrival signals GM’s intent to aggressively pursue intelligent product leadership. WeRide Launches 24/7 Robotaxi Service in Guangzhou WeRide has launched eight robotaxi routes in central Guangzhou, operating around the clock. This marks China’s first 24-hour autonomous ride-hailing service in a major urban centre. It’s a milestone in the commercial deployment of self-driving mobility at scale. WeRide is setting the pace for a fully autonomous, urban mobility ecosystem. Ferrari Previews 2025 Line-Up Including First Full EV Ferrari will debut its first all-electric vehicle in October, part of a six-model 2025 line-up including hybrid hypercars. The new range balances cutting-edge tech with Ferrari’s racing legacy. The launch marks a turning point for Ferrari as it electrifies without compromising soul. Anticipation is high for how the prancing horse will translate emotion into electrons. Stellantis Leverages Virtual Reality to Transform Manufacturing Stellantis is using VR simulation tools to optimise plant ergonomics, safety, and efficiency—signalling a shift toward immersive factory planning. Virtual reality is accelerating smarter plant design and hands-on operator training. This tech-led evolution aligns production with Stellantis’ future-fit mindset. Bugatti Inaugurates Berlin Design Studio as Global Creative Centre Bugatti’s new 1,100-square-metre Berlin studio brings together designers from 22 countries, using VR and digital modelling to shape future hypercars. The studio underscores Bugatti’s drive to blend art, technology, and extreme performance. It cements Berlin as a cradle for next-generation automotive icons. MENA News Lamborghini Names Alessio Soligo as MEA Head Alessio Soligo assumes leadership of Lamborghini MEA, reinforcing the brand’s growth focus across high-opportunity Middle Eastern and African markets. His appointment reflects Lamborghini’s strategy to deliver more bespoke experiences and expand its dealer footprint across the region. The move is also expected to accelerate the brand’s hybrid and EV portfolio in the MEA zone. Al Habtoor Motors Introduces Pagani Huayra Tempesta in UAE The exclusive Tempesta Package upgrades performance and comfort for Pagani buyers in the UAE, accompanied by a one-year extended warranty. The unveiling underscores the UAE’s growing appetite for bespoke hypercars and elite craftsmanship. It reflects Al Habtoor’s commitment to expanding its luxury portfolio with ultra-exclusive offerings. Uber to Launch Autonomous Vehicles in Saudi Arabia by Late 2025 Uber, in collaboration with the TGA, plans to roll out self-driving vehicles with safety operators in KSA, as part of Vision 2030 smart mobility goals. This initiative is expected to boost public confidence in driverless transport in the region. It also marks a critical step in Saudi Arabia’s efforts to lead smart mobility adoption. OMODA & JAECOO Select Dubai as Global Innovation Hub The EV brands have named Dubai as their global innovation base and opened a regional parts centre to support market growth in the Gulf. The move enables closer collaboration with local R&D partners and smart city ecosystems. It reinforces the brands’ vision to position Dubai as a launchpad for global EV growth. Abu Dhabi Expands Robotaxi Trials with Apollo Go Apollo Go’s sixth-gen AVs are being trialled in Abu Dhabi, with city-wide deployment expected by 2026 under the emirate’s smart mobility strategy. The pilot will gather insights on infrastructure demands, passenger experience, and safety compliance. It reflects Abu Dhabi’s ambition to