Automotive sales across the five main markets of the Association of Southeast Asian Nations (ASEAN) rose 13% in the third quarter of 2026 compared with the same period a year earlier

Automotive sales across the five main markets of the Association of Southeast Asian Nations (ASEAN) rose 13% in the third quarter of 2026 compared with the same period a year earlier. Electric and hybrid vehicle demand is driving this growth.

Chinese manufacturers gained market share with affordable battery electric vehicles (BEVs). Japanese manufacturers hold their position in hybrids and their service networks.

Singapore posts the region's highest electrification rate: battery electric vehicles account for 63% of registrations in the country.

Separately, European lawmakers reached a compromise on the automotive package, maintaining a 55% reduction in CO₂ emissions by 2030 and 95% by 2035, with flexibilities via green steel, biofuels and compliance averaging. Small electric vehicles made in the European Union benefit from strengthened incentives, while fleet targets remain non-binding and subsidies exclude imported Chinese electric vehicles.

BMW cut its automotive margin forecast for 2026 for the second time, to a range between a 0.5% loss and a 0.5% profit, citing weakness in the Chinese market and restructuring costs. The group plans accelerated job cuts and lower deliveries, while projecting free cash flow above €2.5 billion.

Tata Motors and Iveco are studying localizing Iveco vehicles in India and using Tata platforms in foreign markets. They are also exploring batteries, components and FPT engines, with Turin as Iveco's headquarters.

Honda is considering restarting automotive production in Europe if future European rules favor locally made vehicles. Current regional sales are too low for a dedicated plant, but higher volumes or contract manufacturing could change the economics. Honda is also seeking recognition as a trusted partner for Japan.