Daily brief
Automotive & Business Brief — 13 October 2026
Brussels puts the Chinese hybrid quota at 350,000 a year from as early as 1 December, against about 800,000 this year, with EU-built cars exempt. Ford wants UK and Turkish assembly to count as ‘Made in Europe’, and Macron calls a Franco-German deal ‘imminent’ before the 15–16 Oct summit.
Executive Snapshot
- Brussels puts the Chinese hybrid quota at 350,000 a year from as early as 1 December, against about 800,000 this year, with EU-built cars exempt. Ford wants UK and Turkish assembly to count as ‘Made in Europe’, and Macron calls a Franco-German deal ‘imminent’ before the 15–16 Oct summit.
Top Developments
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EU sets the Chinese hybrid quota at 350,000 cars a year from as early as 1 December; Chinese brands’ EU-built cars are exempt
Europe
A Commission official said on 12 Oct that imports of Chinese hybrids and plug-in hybrids will be capped at 350,000 a year, possibly from 1 December. Brussels is using the WTO safeguard instrument, which needs no subsidy investigation and can be applied quickly. According to a document seen by Bloomberg, the quota runs four years and can rise 6% a year from the second year. The Commission expects about 800,000 Chinese hybrids to arrive this year, against about 300,000 in 2025; one official put the 2027 reduction at 500,000–700,000 cars. Chinese-brand cars assembled in the EU (Hungary now, Spain later) fall outside the quota, while European carmakers’ China-built hybrids count against it. Enforcement is still disputed: officials told the Guardian that cars above the quota would be held in customs, while the FT reported supplementary tariffs. Automotive World notes that as a safeguard it formally covers hybrid imports from all sources, with exemptions only for the EEA, Ukraine, Kenya and small developing exporters; allocations for other countries have not been published. China cuts tariffs on some EU car parts in return and keeps its WTO rights.
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Chinese brands line up European plants: BYD shortlists France and Spain, Changan targets 180,000 units by 2028, XPeng wants a second line
Europe
At the Paris show on 12 Oct BYD executive vice-president Stella Li said France is on the shortlist for a plant and that BYD will try to open a second and a third plant in Europe; Világgazdaság, citing her Bloomberg TV interview, reports France and Spain as the candidates, Szeged in its final preparation phase with mass production planned for Q4, and BYD’s European workforce passing 10,000 soon and 40,000 by 2030. Changan president Zhao Fei told Reuters that Changan is in active talks with European carmakers about building cars in Europe, will name a factory location and partners by the end of this year, and plans European capacity of 180,000 units by 2028 and 350,000 by 2030; he hopes to build the first Europe-made Changan in early 2027. XPeng vice-president Yeqing Zheng told Reuters that Magna’s Graz plant is ‘not even sufficient’ and that XPeng will add a second European line with a local manufacturing partner, with a decision due within months.
Companies BYD, Changan, XPeng, Magna
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VW Group Q3 deliveries fall 14.3%, but its European electric deliveries rise 20% and Škoda grows 30%
Europe
VW Group delivered about 1,885,300 vehicles in Q3, down 14.3% and its steepest quarterly drop in four years (Reuters); January–September deliveries were 6.01m (−9%). In nine months Western Europe was +1%, Central and Eastern Europe +5% and South America +4%, against North America −4% and China −30%. Electric deliveries in Europe reached 209,100 in Q3 (+19.6%), while US electric deliveries fell 86%. By brand, Q3 electric deliveries rose 30% at Škoda and 25.5% at SEAT/CUPRA but fell 22.4% at VW Passenger Cars and 21.5% at Audi. Plug-in hybrids and range extenders rose 23% in nine months to 368,000. VW says electric cars make up about 40% of its European order book, and group order intake is up 4% after three quarters.
Companies Volkswagen, Škoda, SEAT/Cupra, Audi
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Stellantis will build at least two €15,000 e-cars in Pomigliano from 2028 on a platform co-developed with Leapmotor
Europe
Chief technology officer Ned Curic said on 12 Oct that the e-car programme has started, with Stellantis and Leapmotor engineers working side by side at Mirafiori in Turin on a European city-car platform. At least two e-car models, priced at about €15,000 and due in 2028, will be built at Pomigliano in southern Italy; they include the Citroën 2CV shown in Paris. Curic said Stellantis is learning from Leapmotor how to develop a car in about two years.
Companies Stellantis, Leapmotor
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Stellantis signs a definitive deal to build Jeeps on Tata platforms in India for more than 50 markets
Asia
On 12 Oct Tata Motors Passenger Vehicles, its EV unit TPEM and Stellantis India signed a definitive agreement that extends their partnership to vehicle technology and product development. Tata keeps ownership of its architectures and gives Stellantis access to them; Stellantis’ Indian engineering teams adapt them for more than 50 markets. The cars will be built by FIAPL, the companies’ 50:50 joint venture in Ranjangaon near Pune. The first will be a new Jeep SUV on the ARGOS platform that underpins the Tata Sierra. Autocar India, citing people familiar with the plan, reports the code name J1J, petrol and electric versions, a left-hand-drive version for export, existing Sierra suppliers covering shared parts, and a launch in the first half of 2028.
Companies Stellantis, Tata Motors
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Schaeffler is 79% through its 4,700 German job cuts a year early and adds 1,768 early-retirement contracts
Europe
Schaeffler said on 12 Oct that by 30 Sep it had cut 3,715 of the 4,700 jobs announced in November 2024. Contracts for the remaining 985 are signed, so the target will be reached at the end of 2028 instead of 2029. The €290m of savings planned for 2029 should be beaten by more than 20%, and the cuts cost less than expected, so it released about €84m of unused restructuring provisions. Separately, by 5 Oct it signed 1,768 new partial-retirement contracts (it had expected about 1,300), because the planned German pension reform is expected to end the current schemes. These add about €55m to 2029 earnings and need about €70m of further provisions by 2030.
Companies Schaeffler
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China in September (CAAM): vehicle exports pass 1 million while domestic passenger-car sales fall 27%
Asia
CAAM data released on 12 Oct show September vehicle sales of 2.956m (−8.4% year on year) and production of 2.99m (−8.7%). Exports reached 1.053m (+61.4%) and 8.205m in January–September (+65.8%). In passenger cars, domestic sales fell 27.4% to 1.668m while exports rose 64.2% to 919,000. NEV exports were 571,000 (+160%), including 219,000 plug-in hybrids (+220%). Domestic sales of conventional passenger cars fell 47.3%. NEVs were 61.6% of all sales.
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Renault: EVs reach about 60% of brand sales in France; Douai moves to three shifts and French EV output could rise at least 50%
Europe
Renault brand CEO Fabrice Cambolive said on 11 Oct that electric cars made up about 60% of Renault-brand sales in France over the weekend, after 53.5% in September (France overall: 42%), driven by high fuel prices. Renault added half a shift at Douai in early October, where it builds the R5, Mégane and Nissan Micra; the plant now runs three shifts. At the show Cambolive said Renault could raise EV production in France by at least 50% over the next 12 months (Reuters). Renault Group publishes Q3 sales on 29 Oct.
Companies Renault, Nissan
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Audi’s wiring-system chief: future harnesses will be smaller zonal modules designed for automated assembly
Global
In an interview published on 8 Oct, Dr Ole Mende, Audi’s head of on-board and energy network development, said geometric zonal architectures (front-left, front-right, cockpit and rear zones with zone controllers and a data and power backbone) allow smaller, standardised harness modules with fewer variants. He does not expect the complete customer-specific harness to be automated. Audi’s Next2OEM research project with ten partners showed automated production and assembly of a centre-console harness module. Mende wants design for manufacturing and assembly from the start, fewer connector variants, end-to-end data models, and much closer work between OEMs, harness suppliers, connector makers and automation partners.
Companies Audi
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Hyundai readies the new Tucson in Nošovice and the Bayon (with a hybrid) in Izmit; about 80% of its European sales are built in Europe
Europe
Hyundai said in Paris on 12 Oct that its Czech plant in Nošovice (more than 5m vehicles built, over €2bn invested) is preparing to build the all-new Tucson, offered as a 245 PS hybrid, a plug-in hybrid with a 17.1 kWh battery, and a 48V mild hybrid. Hyundai Motor Türkiye in Izmit will start the all-new Bayon later this year, with hybrid versions enabled by a new on-site battery-system assembly plant; Izmit started building the electric IONIQ 3 in August after a €250m conversion. Hyundai’s European capacity is about 580,000 units, it says almost 80% of what it sells in Europe is built there, and it will have invested more than €3bn in Europe by 2030.
Companies Hyundai Motor
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‘Made in Europe’: Ford wants final assembly in the UK and Türkiye to count; Macron says a Franco-German deal is ‘imminent’
Europe
Ford of Europe president Jim Baumbick said on 12 Oct that the Industrial Accelerator Act must also recognise final assembly in neighbouring countries such as Türkiye and the UK, and that ‘Made in Europe’ should be measured ‘by where value is created, not where the last bolt is torqued’, with safeguards against circumvention. ACEA asked earlier this month for more time before the local-content conditions for EV subsidies apply. At the show, Macron said agreement between France and Germany on the provisions is ‘imminent’ (Reuters), a day after the Élysée said there was no agreement yet. Paris has reportedly wanted partners such as Turkey and Morocco left out. EU leaders meet on 15–16 Oct.
Companies Ford
Earnings Calendar
| Date | Company | Event | What to watch |
|---|---|---|---|
| VolkswagenOEM | VW Q3 pre-close call | ||
| RenaultOEM | Renault Q3 sales | ||
| VolkswagenOEM | VW nine-month results |