Why the Software-Defined Vehicle Needs an AI-Defined Strategy

Industry News

By Sachin Lawande, President & CEO of Visteon For years, the shift to software-defined vehicles has dominated conversations across the automotive industry — and with good reason. The move from mechanical systems to digital architectures has fundamentally changed how we design, build, and upgrade automotive technology. But software is just the foundation. What happens next depends on intelligence. From Computing Power to Intelligence The history of personal computing has followed a clear arc: from local, stand-alone machines, to cloud computing that delivered scale and access to vast amounts of information, to mobile computing that put this power in our pockets. Each step increased access but not necessarily insight. Connecting the dots hidden in oceans of data remained out of reach. Artificial intelligence promises to close that gap. It makes devices almost sentient — able to perceive, learn, and respond in a human-like way. I like to think of AI as a “super butler”: a brain that sits above the information, anticipating needs and making complex tasks simple and intuitive. Software Alone Doesn’t Make a Vehicle Smart In automotive, we have traditionally thought in terms of features and functions. IVI systems deliver information, entertainment, and connectivity while keeping drivers safe. ADAS features add awareness of the road and environment, improving active safety. Body systems enhance comfort and convenience, from climate to access to automated controls. The first technology-led transformation was making all these features software-driven. Tesla pioneered over-the-air updates, showing how cars could evolve after they left the factory, and Chinese OEMs scaled the approach quickly. That shift was transformative. But now the challenge is different: making this vast amount of in-vehicle software easier and more intuitive to use. And this is where generative AI becomes complementary to SDV. It gives vehicles the ability to understand context, anticipate driver needs, personalize the cabin environment, and improve over time. The cockpit becomes dynamic. The vehicle becomes aware. That’s a leap — and it’s not something you can patch in after the fact. The real potential of AI is unlocked when it’s treated as part of the platform, not an accessory. Designing Vehicles for Intelligence Rethinking in-cabin systems starts with treating them not just as a collection of features, but as intelligent, adaptable platforms. AI can: Learn driver and passenger preferences over time, personalizing experiences in ways that static rule-based systems cannot. Deliver context-aware UX, where the interface adjusts based on behavior, preferences, or real-world conditions. Improve driver productivity, anticipating daily routines and integrating tools seamlessly. Enhance vehicle health and diagnostics through predictive insights. At Visteon, we’re treating intelligence as a core part of the cockpit architecture, built to support a range of evolving use cases over time. And we’re tackling one of the hardest challenges: running Gen-AI models efficiently inside the vehicle and connecting them to the full IVI system so that tasks are carried out intuitively and responsibly. This requires balancing on-device processing for responsiveness, edge learning for personalization, and fleet-level insights for continuous improvement. We see AI as the next big technology wave in automotive — just as Android reshaped how cockpit systems were built a decade ago. Then, as now, we’re focused not on choosing sides but on making the underlying technology practical, efficient, and scalable for OEMs. Why It Matters Soon, the intelligence behind the cockpit will matter as much as the motor under the hood. As electrification and connectivity become standard, the in-cabin experience becomes the ultimate differentiation — where brands will win trust, loyalty, and margin. We also need to be realistic: AI introduces new challenges. Around trust. Privacy. Regulation. Part of our responsibility as leaders is ensuring that these systems are not only smart, but responsible, with explainable models, clear safeguards, and a design philosophy that keeps humans at the center. Where We Go from Here As the lines blur between machine learning and human behavior, one thing is clear: the vehicles of the future won’t just run on software. They’ll think with it. And at Visteon, we’re building for it.

What The Vehicle Cockpit Will Look Like By 2030?

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By Sivakumar Yeddanapudi, Global Vice President – Digital Cockpit and Connected Services When we talk about the vehicles of the 2030s, the conversation often starts with electrification and autonomy. But there’s another transformation happening in parallel, just as significant: the reinvention of the cockpit. By 2030, the cockpit will no longer be a cluster of disconnected screens and functions. It will be the intelligent nerve center of the vehicle — seamlessly blending hardware, software, connectivity, and AI to create experiences as personalized, adaptive, and intuitive as the smartphones we carry today. Three forces are shaping this future: 1. Edge-native intelligence. Vehicles will increasingly run AI copilots and predictive systems directly in the car, not just in the cloud. From proactive diagnostics to natural, multimodal interactions, intelligence will be baked into the cockpit itself, making every drive smarter and safer. 2. Vertical integration of hardware and software. The cockpit will be powered by domain controllers — the “motherboards” of the vehicle — replacing scattered ECUs. This will enable automakers to deliver tightly integrated experiences across displays, audio, voice, and connectivity. It also means cockpit solutions will be productized and repeatable, not built from scratch each time. 3. The cockpit as an ecosystem. Connectivity will no longer be a differentiator; it will be assumed. Features like Satellite communication, 5G, software-defined services, Wi-Fi 7, phone-as-key, and multi-stream audio with minimum 12 speakers will form the baseline. The real value comes from ecosystem integration — cars that connect effortlessly to digital lives, workplaces, homes, and cities. Experience as the Differentiator Tomorrow’s vehicles won’t just be measured by horsepower or range. They’ll be judged by the experience of being inside them. That means: Safety and security as embedded features, not afterthoughts Adaptive, personalized UX that anticipates driver and passenger needs Rapid iteration cycles, where cockpit software evolves as quickly as consumer apps Cross-domain integration, from infotainment to ADAS, so the cockpit feels unified, not fragmented The Global Shifts We Must Anticipate The cockpit revolution won’t unfold evenly across the world. In China, OEMs are already redefining what “premium” means — embedding high-end comfort, convenience, and intelligence even in mid-segment cars. Global tech giants are reshaping the semiconductor and AI landscape all over the world In emerging markets, digital-first consumers are leapfrogging expectations, demanding vehicles that connect as seamlessly as their phones. For companies like Visteon, the challenge — and opportunity — is to read these shifts early and translate them into products that scale across geographies and customer segments. Visteon’s Role in Leading the Transformation Our industry is at a crossroads. We’re completing our transformation from a project supplier into a product- and technology-first innovator. That means: Investing in repeatable platforms and IPs Partnering strategically where it accelerates outcomes Cultivating startup energy across teams, because speed is as critical as vision The cockpit of 2030 will not be defined by a single company or technology. It will be the result of collaboration, integration, and relentless innovation. At Visteon, we’re committed to building that future – where every cockpit is intelligent, connected, and designed to enhance not just the way vehicles move, but the way people live.

Opportunity in motion: The role of automotive in driving social mobility

Industry News

Why the car is still an essential player in driving social mobility. In this exclusive guest article for Just Auto, Inchcape – a leading global automotive distributor – CEO Duncan Tait reflects on the results of a new survey of APAC and Latin American consumer attitudes to motorisation and the part played by the car in driving social mobility. For many of us, it’s a long time since we passed our driving test. But cast your mind back to that moment when the L-plates came off and you felt the freedom of mobility! In emerging markets, where distances are longer and public transport is less accessible, you can imagine that this feeling is more pronounced. As I visit markets like Chile, the Philippines and the Caribbean, I see firsthand the vital role that vehicles play in enhancing quality of life and powering local economic development. Car ownership is far more than a utility – it is a vehicle for wellbeing, social advancement and personal identity. It remains embedded in how individuals define a good quality of life and navigate the demands of modern society. Our new Drivers of Change survey asked 6,000 consumers across 13 countries in Asia Pacific (APAC) and Latin America to share their views about car ownership and the sentiment of consumers towards the new energy vehicle transition. Our findings confirm our view that access to personal mobility or transport remains fundamental to economic development and social inclusion. For many people in these countries, having a car means they’re able to travel to their job, attend healthcare appointments and pursue education. Unlocking opportunities through car ownership In Asia Pacific, 63% of respondents cite ‘freedom of movement’ as a major benefit of car ownership. In Latin America, the evidence is even more prominent with 91% of respondents valuing the ability to travel according to their own schedule. Taking into consideration the distances people often must cover and the public transport are developing in many of the countries we surveyed, it is easy to understand why a personal vehicle plays such an essential role in social mobility. In addition to freedom of movement, consumers in APAC point to easier commuting (49%) and enhanced lifestyle and wellbeing for themselves and their families (39%) as major benefits of owning a car. Additional advantages include access to job opportunities, and improved access to education. Latin American respondents believe that a vehicle enables a better lifestyle for themselves and their families (86%), facilitates commuting to and from work (86%), and improves access to employment (81%). Car ownership increases the opportunity for a better life These insights support our view that vehicles enhance personal development, economic participation and social inclusion. For certain groups, such as the elderly or people with disabilities, having access to a personal car can mean the difference between isolation, access to healthcare and active engagement with the community and wider society. At a time when personal car ownership is increasingly important, the industry needs to come together to solve the challenge of decreasing greenhouse gas emissions by working to support the transition to EVs – there is no one-size-fits-all approach and the transition must be equitable and enduring. In listening to and understanding what drives consumers in individual countries, we can further understand how best to provide mobility solutions that support personal development, economic participation, and social inclusion. Duncan Tait – Inchcape CEO Duncan brings significant international experience and a wealth of digital and data experience, a key enabler of the Accelerate+ strategy. He played a pivotal role in the Group’s digital strategy with the development and deployment of the Digital Experience Platform (DXP) and the Digital Analytics Platform (DAP), which are key differentiators for Inchcape. Duncan was previously on the board of Fujitsu, a global technology services company with 35,000 people. Duncan has also held senior roles at Unisys, Hewlett Packard, and Compaq in a technology focused career of over 30 years. Duncan is currently a non-executive director at Agilisys. This content has been automatically generated from the original source. Please note that the original source may have been modified since the content was generated.

How software is shaping the future of mobility

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In this guest opinion piece, Jens Hinrichsen, from NXP Semiconductors, describes the rise of the Software-Defined Vehicle (SDV) and its transformative implications for the auto industry. The automotive industry is undergoing one of the most significant transformations in over a century – driven not by hardware, but by software. Vehicles will be digitized and increasingly defined by the compute architecture and software that powers their functionality and intelligence. The rise of the Software-Defined Vehicle (SDV) is changing how cars are designed, built, and experienced, but to realize those benefits, automakers, T1s, software, and semiconductor vendors must evolve. The digitization of the car Before we look at how the industry needs to adapt, it’s worth taking a step back and considering what we mean by SDVs. These aren’t just vehicles that are developed, built, and sold, but vehicles which evolve and improve after they’ve left the production line based on a dynamic digital platform. This transformation is about redefining the vehicle’s core architecture and how it is experienced. In a software-defined vehicle, features and functions are increasingly abstracted from hardware and run in software. To achieve this, some sort of central compute architecture is required – a platform that enables continuous updates, upgrades, and even personalization of the car. This means vehicles require a powerful and scalable electronics architecture based on semiconductors (hardware), efficient and scalable software drivers and middleware to integrate all the electronics, and on top of it intelligent and feature-rich application software to define the functionality of the car. Such an SDV platform manages everything from ADAS (Advanced Driver Assistance Systems) to IVI (In-Vehicle Infotainment). Most importantly, it includes the core vehicle functions to operate and to propel the car, which becomes even more important for electric vehicles where intelligent energy flow and battery management significantly impacts the lifetime and range of the vehicle. This new approach to vehicle compute architecture makes it possible to activate new features after the car is sold, adapt vehicle behavior in real time, and evolve interfaces as technology and user preferences shift – such adaptations are prohibitively complex in traditional vehicles. SDVs therefore enable a completely new value proposition: the car gets smarter and better with age. With the rise of AI, the SDV platform only becomes more critical, with AI-powered ADAS, preventive fault detection or range optimizations, for example, transforming how we use our vehicles. Together, these shifts mark a clear departure from the traditional vehicle lifecycle defined by depreciation and eventual obsolescence. But this evolution brings complexity. Building a car that improves over time – and is ready to integrate the next-generation of AI – requires a fundamental rethinking of design, supply chains, and safety. Processes and priorities that have been in place for decades now need to evolve. Rethinking traditional architectures Traditionally, vehicle functions were tightly coupled to specific electronic control units (ECUs), each often developed by different suppliers. This hardware-centric approach meant that adding or modifying features required changes to the underlying ECU hardware and their specific software modules – making updates complex, time-consuming, and costly. Engineering teams had to navigate a patchwork of tools, processes, and dependencies, resulting in limited flexibility once the vehicle left the factory. In short, the system was rigid, expensive to maintain, and difficult to scale. The SDV concept is creating a platform that can be updated, upgraded, or personalized over time, and also enables carmakers to revolutionize how they develop and produce new vehicles. This concept allows the highest level of hardware and software re-use, which enables carmakers to develop new vehicle platforms a lot faster. Such platforms are inherently scalable. The fundamental architecture can be used across entry-level models right up to high-end models, and it can be scaled across various OEM brands. This drives speed of innovation, faster time to market, and optimizes total cost of ownership. Automakers have started making key decisions about how to evolve their compute architectures to tackle engineering challenges. Some are consolidating multiple domains into centralized compute platforms to streamline processes and reduce complexity, while others are adopting zonal architectures that distribute compute closer to the edge – near sensors and actuators – to improve latency, modularity, and scalability. Regardless of approach, meeting these demands requires more powerful semiconductors, scalable compute, greater energy efficiency, high-bandwidth communication, functional safety, the highest standards of security, and new system-level innovations. From supply chains to ecosystems This transition is also redrawing the lines of the automotive supply chain. The historical model – where automakers, Tier 1s, and semiconductor suppliers operated in a linear hierarchy – is giving way to an ecosystem of strategic collaboration. This shift is driven by the growing realization that vehicle digitization depends not only on the compute, networking, and power management technologies of a vehicle but the software that runs on it. As digital features expand, so does the complexity of integrating hardware and software efficiently across the vehicle – and no one company can do this alone. Delivering that innovation at scale calls for a new model of collaboration – one where automakers, suppliers, and technology partners work in parallel from the start. The development model behind SDVs is no longer a linear supply chain; it’s a tightly integrated ecosystem. As vehicle architectures evolve to support software-defined capabilities, NXP is increasingly engaged earlier in the design process – contributing not just silicon, but system-level expertise and software solutions that helps define compute architectures. From vehicle compute and zone controllers to networking and power management, we support OEMs and Tier 1s in building safe, scalable platforms that enable long-term software innovation. Both emerging manufacturers and legacy players should play to their strengths Today’s shifts in the industry are impacting automakers in very different ways. New entrants, without the burden of legacy systems, can design vehicles from the ground up with software at the center. Their streamlined product lines and software-native cultures often align more naturally with SDV architecture (as well as today’s consumer preferences). However, they may face non-trivial challenges when it comes to…

Hyundai Motor Group opens new European test facility to lead development of next-generation technology

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Hyundai Motor Group reinforces commitment to Europe with ‘Square Campus’ expansion at Hyundai Motor Europe Technical Center New €150m facility underpins the development of advanced, market-leading technologies for European customers Investment includes one of the world’s largest semi-anechoic chamber, climate testing and EV charging laboratory Square Campus enhances collaboration with Hyundai Motor Group’s main R&D facility in Namyang, South Korea, to deliver exciting new Hyundai, Kia and Genesis models Rüsselsheim am Main, November 6, 2025 – Hyundai Motor Group (the Group) has today announced the opening of a new €150m facility at the Hyundai Motor Europe Technical Center (HMETC) in Rüsselsheim am Main, Germany, marking a major milestone in its commitment to European innovation and engineering excellence. Square Campus is the most significant investment in R&D facilities at HMETC since the opening of the Round Campus in 2003, underpins the development of innovative, market leading technologies, and will play a vital role in the development of future Hyundai, Kia and Genesis models in Europe. Tyrone Johnson, Managing Director at Hyundai Motor Europe Technical Center, said: “The investment at Square Campus is a clear sign of our commitment to the region and reflects the importance of Europe in our long-term growth strategy. The extensive new capabilities at HMETC give us more independence and flexibility, while creating exciting new opportunities for collaboration between our brands. Fundamentally, Square Campus will also support us as we continue to grow our market share in Europe, developing new vehicles and technologies designed around the needs of our customers.” Advanced facility unlocks new capabilities The 25,000m2 site is equipped with the largest semi-anechoic chamber within the Group, allowing unrestricted Noise, Vibration and Harshness (NVH) and drive-by noise testing with complete independence from weather conditions. Highly advanced dyno facilities at Square Campus play a key role in development, allowing for the comprehensive testing of vehicles and individual components, compatible with all-electric, hybrid and ICE powertrain applications. The facility is also equipped with a new EV charging laboratory, a state-of-the-art driving simulator, and new facilities for extended Electronics System Development – including Over-the-Air-Updates (OTA), Cybersecurity, and Advanced Driver Assistant Systems (ADAS). These industry leading capabilities allow HMETC to test and validate every type of vehicle under real world conditions, while developing future products tailored to the unique expectations of European customers. The investment at Square Campus forms an essential part of the Group’s strategy, underlining its position as a leader in advanced technologies. While real-world prototype testing will remain a crucial part of the development journey, Square Campus protects against the challenges associated with external outdoor testing and complements the Group’s existing global testing and knowledge sharing programmes. Sustainable design, enhanced collaboration Square Campus supports the Group’s environmental objectives, incorporating recycled materials, photovoltaic panels and heat pump systems. This reflects the Group’s broader commitment to developing sustainable mobility solutions and achieving zero-tailpipe emissions globally by 2045. The significant expansion is also a foundation for the continued growth of HMETC’s team, which has increased by 20% since 2024, with the organization now employing now more than 500 employees. This investment in talent and technology simultaneously drives a new phase of integrated innovation, bringing together experts from across disciplines to advance the Group’s vision for sustainable, connected mobility. European development will continue at HMETC’s facilities at the Nürburgring, opened in 2013. This facility was also expanded thanks to a €13m investment in January 2025, with an additional 834m2 of cutting-edge testing facilities, dedicated workshop areas and specialised laboratories. This content has been automatically generated from the original source. Please note that the original source may have been modified since the content was generated.

Waymo plans to launch robot taxi service in Detroit, Las Vegas and San Diego in 2026

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Waymo’s robot taxi service is accelerating its expansion: Google’s sister company has now announced that it will also launch in Detroit, Las Vegas and San Diego next year. Together with its existing markets and other announcements, Waymo is likely to serve a dozen cities soon. Perhaps in light of Tesla’s plans to establish its own robot taxi service, Waymo now wants to expand its network even faster than previously announced. Just a few days after announcing its intention to enter London, its first city outside the US, Waymo has now also announced its launch in three other major US cities next year: Detroit, Las Vegas and San Diego. These three cities will join the five existing US cities of Phoenix, San Francisco, Los Angeles, Austin and Atlanta, where Waymo already operates 250,000 autonomous trips per week. Launches in Dallas, Denver, Miami, Nashville and Washington, DC have also been announced. Adding up all the announcements and existing cities, this brings the total to twelve US cities plus London. In Las Vegas, Waymo will face competition from Zoox: after lengthy preparations, the Amazon subsidiary launched its first robot taxi service there in September. Zoox’s specially developed vehicle has no steering wheel, pedals or driver’s seat and can transport up to four people. Waymo’s vehicle fleet currently consists of fully electric Jaguar i-Pace EVs converted at its own factory, with fully electric minivans from Zeekr and specially prepared Hyundai Ioniq 5s set to be added soon. Waymo’s hardware suite most recently consisted of 13 cameras, four lidar sensors and six radars to create a 360° view for the autonomous vehicle. In contrast, Tesla CEO Elon Musk relies solely on cameras for autonomous driving, which is cheaper, but raises doubts about the safety of the technology. Waymo has already tested its autonomous vehicles in winter conditions in preparation for the launch in Detroit to ensure that the robotaxis can operate safely there even in heavy snowfall. Test drives were also conducted on the Upper Peninsula of Michigan, north of Detroit. This article was first published by Florian Treiß for electrive’s German edition. This content has been automatically generated from the original source. Please note that the original source may have been modified since the content was generated.

Volvo Trucks launches stop/start engine tech for heavy-duty trucks

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Claims a world first that will make incremental fuel use saving of up to 1%. Volvo Trucks has developed what it claims is a world-first – for heavy-duty vehicles – stop/start engine technology to save fuel and CO2. The latest addition in Volvo’s striving for fuel savings is developed in-house at Volvo and is based on the company’s existing I-See and I-Roll technologies. The new stop/start engine feature is enabled by constantly monitoring road data and road curvature information. The engine will be turned off temporarily when an oncoming downward slope is identified along the route. While the engine is turned off, zero fuel will be consumed and consequently, there will be no CO2 tailpipe emissions. “Our engineers have done it again – innovating a new engine technology that contributes to making transport by truck more fuel-efficient”, says Jan Hjelmgren, Head of Product Management, Volvo Trucks. He continues: “As part of our decarbonization strategy, we will continue to innovate to make our combustion engines even better and to reduce our impact on the environment.” The new engine stop/start functionality is activated at speeds above 60 km/h. Depending on enabling conditions such as topography and ambient temperature, the new I-Roll with Engine stop/start will be able to cut up to one percent of fuel and CO2 emissions on top of already achieved savings. Together, Volvo’s many innovations represent significant efficiencies and a positive impact on emissions from transport, as well as running costs for the operator. The new feature will be offered on the Volvo FH and FH Aero with 13-liter diesel engine and customers can order it from November 2025. Volvo Trucks’ strategy for decarbonization includes combustion engines powered by renewable fuels, battery-electric and fuel-cell electric trucks. This content has been automatically generated from the original source. Please note that the original source may have been modified since the content was generated.

Project E|MPOWER launches test phase for highway charging in Germany

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In the E|MPOWER project for inductive charging of EVs while driving, the construction phase on the A6 motorway near Amberg has been completed. The test phase is now beginning. This is the first time in Germany that research is being conducted on a motorway into how electric vehicles can be charged wirelessly while driving. The test track along the A6 motorway in the Upper Palatinate was inaugurated in the summer. The section between Amberg-West and Sulzbach-Rosenberg is just under one kilometre long. With the official completion of the construction phase, the project, led by Friedrich-Alexander University Erlangen-Nuremberg (FAU), is taking “a decisive step towards electrified mobility,” according to the FAU. However, it is not only the test phase that is now beginning that is expected to yield important insights into inductive charging while driving: the consortium consisting of FAU, Electreon, VIA IMC, Risomat and the Georg Simon Ohm University of Applied Sciences in Nuremberg (Ohm), as well as the partners Seamless and Eurovia involved in the project, intend to use the results of the construction phase to develop construction and installation processes suitable for series production. The efficient production of induction coils is also part of E|MPOWER. The system embedded in the A6 is based on a solution from Electreon, one of the market leaders in inductive charging and, above all, dynamic inductive charging. The principle sounds simple: coils embedded in the road surface generate a magnetic field as soon as a suitably equipped vehicle drives over them. A counter coil in the vehicle absorbs the energy and feeds it directly into the battery. Unlike overhead line solutions, for example, the technology is invisible and vandal-proof, integrated into the road surface, so that the section remains a normal stretch of motorway for all other road users. Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel Image: FAU/Harald Sippel The technology for the integration and scalable production of the coils comes from Seamless Energy Technologies in Nuremberg. “The company supplies the electronic unit, which is integrated beneath the road surface and enables precise energy transfer between the road and the vehicle,” as FAU writes. “The system works dynamically while driving as well as statically when parked.” The press release does not specify the charging capacities to be transmitted. The press photos from the event do not provide any information on this: the display always shows ‘- – kW’. A recently installed Electreon system near Paris is said to be capable of transmitting up to 200 kW of continuous power and 300 kW of peak power. The use of Electreon technology on the A6 is the longest test track of its kind in Germany to date – and, as mentioned, the first test on/in a motorway. However, it is not the first use in Germany: Electreon already implemented its first projects in Karlsruhe and Balingen in 2020 and 2023, although the latter involved a slow-moving shuttle bus for a garden show. The motorway section near Amberg is longer and the vehicles are travelling at significantly higher speeds. E|MPOWER also focuses on production and construction techniques in order to reduce the construction costs and duration for such systems. ‘With E|MPOWER, we are literally bringing research to the road,’ says Florian Risch, Professor of Assembly Technologies for Electrical Energy Storage at the Chair of Manufacturing Automation and Production Systems (FAPS) at FAU. ‘The technology has the potential to overcome range anxiety, reduce the need for battery imports and strengthen regional value creation in electromobility.’ Andreas Wendt, Managing Director of Electreon in Germany, adds: ‘The test track on the A6 is an important step in validating our technology under real-world conditions and demonstrating its advantages for everyday use. We are convinced that inductive charging will make a decisive contribution to making electric mobility more efficient and suitable for mass use.’ One potential advantage of inductive charging is that the system with the counter coil on the underbody of the vehicle can be used on different types of vehicles – cars, lorries or buses. Overhead lines, on the other hand, have to be mounted high enough on the motorway so that lorries and coaches can pass underneath them, which means that the overhead line is very high for cars. An electric truck, an electric van and an electric car – a Toyota bZ4X – will be on the road during the test. Electreon states that energy flow can be intelligently controlled via a digital platform. ‘Charging times and quantities are adjusted according to demand in order to avoid peak loads and use the available energy efficiently. In this way, the system supports optimised fleet management and contributes to the stability of the power grid,’ the announcement states. The E|MPOWER project is funded by the German Federal Ministry for Economic Affairs and Climate Protection (BMWK) as part of the Elektro-Mobil programme and supported by the federal motorway company Autobahn GmbH. The project consortium used the resurfacing of the Nuremberg-bound carriageway of the A6 motorway between the Sulzbach-Rosenberg and Amberg-West junctions to implement the test track on a section of the motorway. In the long term, the technology is to be extended to longer sections of motorway and urban areas.

IAA Mobility 2025: Will Chinese OEMs revive Europe’s contract manufacturers?

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As traditional OEMs reduce their reliance on outsourcing, Chinese automakers are stepping in. The IAA Mobility Show in Munich highlighted a clear shift in the European auto industry; contract manufacturing, used primarily for overflow from European OEMs, is now being redefined as Chinese brands seek to establish a local foothold. Legacy OEMs step back, contract manufacturers left idle Companies such as Magna Steyr in Austria, Valmet Automotive in Finland, and VDL Nedcar in the Netherlands traditionally built additional models for Europe’s automakers. These included low-volume projects or temporary runs when in-house plants operated at full capacity. Today, however, consolidation sweeps across the industry and the phase-out of many Internal Combustion Engine (ICE) vehicle lines leaves European OEMs with low utilization rates at their own facilities. Volkswagen Group is on track to shed 30% of its manufacturing capacity in Germany alone over the next 4-5 years, while BMW Group will bring all European production in-house from 2028, despite outsourcing as much as 10-20% of it annually in the past. The result is falling demand for external manufacturing. Magna Steyr has been particularly affected, with contracts for Jaguar’s E-Pace and I-Pace ending in 2024, BMW’s 5-Series stopping in 2023, and production of the Toyota Supra and BMW Z4 scheduled to finish by 2027. This has created significant spare capacity at its plant in Graz, which can produce up to 235k units per annum, while also presenting an opportunity for smaller Chinese brands looking for a low-risk, ready-made European launchpad to test the waters. Chinese automakers localize in Europe Enter Guangzhou Automobile Group (GAC) and Xpeng. At this year’s IAA Mobility Show, GAC announced that its Aion V Midsize SUV and Aion UT Hatchback will be built at Magna Steyr, while Xpeng confirmed that assembly of its G6 and G9 SUVs is already underway at the same facility. By producing locally, the companies aim to avoid EU tariffs on Chinese Electric Vehicles (EVs) while increasing their responsiveness to European tastes and demand. To this end, Xpeng also announced it will open a new R&D centre in Munich, with the explicit goal of expanding its regional model range. A broader push across the continent GAC and Xpeng are part of a broader second wave of Chinese models entering Europe, characterized by a greater emphasis on localization and sheer variety compared to the first wave in the early 2020s. BYD confirmed at the show that the Dolphin Surf will be the first model at its new Hungarian plant, coming online at the end of 2025. Leapmotor, in partnership with Stellantis, unveiled the B05 Hatchback which it intends to localize from 2027. Chery has also begun production in Spain through a joint venture with Ebro, while other Chinese brands continue to explore local assembly arrangements. Contract manufacturers reposition themselves For European contract manufacturers, the arrival of smaller Chinese OEMs offers a crucial lifeline. Magna Steyr’s new contracts with GAC and Xpeng will help offset its loss of business with established European players. Valmet Automotive, meanwhile, has faced reduced order volumes and a change in ownership structure, with CATL exiting and the Finnish state stepping in as a shareholder. VDL Nedcar has also faced contract losses from BMW and remains under pressure to secure long-term agreements, having ended large-scale vehicle assembly in early 2024 and partially transitioned to mobility solutions and defense. For Magna Steyr and Valmet, at least, partnering with Chinese automakers represents a way to continue operating as car producers, even as their traditional clientele reduces its reliance on outsourced manufacturing. Chinese presence at the IAA The strong Chinese presence in Munich underlined this strategic shift. A total of 116 Chinese exhibitors participated, making them the largest foreign group at the event. GAC emphasized its “in Europe, for Europe” strategy, with executives stressing that localization is central to its international plans. Xpeng showcased updated models with record charging speeds, while also outlining plans to diversify its line-up with new Sedans developed in part through its Munich R&D centre. The breadth of the Chinese offering, from affordable Hatchbacks to Premium Sedans and SUVs, underscored how quickly these brands have built comprehensive product portfolios. Europe faces a market realignment For European OEMs, the trend represents both competitive pressure and a structural shift in the supply base. Domestic automakers still dominated the Munich event, but with stagnant demand and shrinking margins, their competitive position looks increasingly challenged. GlobalData estimates that Chinese automakers could reach European market shares similar to those of Japanese and Korean OEMs, at 13% and 7% respectively, within the next decade. In this environment, contract manufacturing is no longer simply a mechanism to handle overflow. Instead, it is becoming a strategic channel through which new entrants establish themselves and compete on equal terms. Conclusion The announcements at the IAA Mobility Show 2025 confirm that Europe’s contract manufacturing capacity is being repurposed. As traditional OEMs reduce their reliance on outsourcing, Chinese automakers are stepping in to use existing facilities, manage tariff exposure, and accelerate their entry into the market. For companies such as Magna Steyr and Valmet, these partnerships may be vital to their future as car manufacturers. For European automakers, the shift signals a more competitive landscape where capacity-for-hire, once entirely at their disposal, is now becoming a key conduit for the second wave of Chinese EVs. Jeremy Worlock, Analyst, Production Forecasts, GlobalData This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.

New car registrations: down 9.3% in October 2025; Battery electric vehicles up 34.3%

Industry News

Images are for editorial use only. Today, the Society of the Irish Motor Industry (SIMI) released their official 252 new vehicle registration statistics for October. New car registrations for October were down 9.3% (2,192) when compared to October 2024 (2,417). Registrations year to date are up 3.4% (123,858) on the same period last year (119,772). Light Commercial Vehicles (LCVs) increased by 41.8% (1,694) compared to October last year (1,195). Year to date, LCVs are up 4.7% (31,447). Heavy Goods Vehicles (HGVs) registrations are up 7.8% (138) compared to October 2024 (128). Year to date, HGVs are down 7.6% (2,541). Imported Used Cars have seen a 19% (6,791) rise in October 2025, when compared to October 2024 (5,709). Year to date imports are up 13.1% (60,452) on 2024 (53,446). In October 709 new electric cars (battery electric cars) were registered, which was 34.3% higher than the 528 registrations in October 2024. So far this year, 23,085 new electric cars have been registered, representing a 38.6% increase compared to the same period in 2024, when 16,653 electric cars were registered. In the new car market share by engine type for 2025, Petrol cars continue as the new car market leader at 25.23%, followed by Hybrid (Petrol Electric) at 22.56%, Electric at 18.64%, Diesel at 17.13%, and Plug-in Electric Hybrid at 14.83%. Brian Cooke, SIMI Director General, commented: “While October new car registrations declined by 9% when compared to the same month last year, year-to-date new car sales remain over 3% ahead, with a total of 123,858 new cars registered. October’s new battery electric car registrations indicate growth in every county, with 709 units registered, an increase of 34% when compared to October 2024, marking the tenth consecutive month of growth in EV sales. Year-to-date EV registrations have now reached 23,085 units, a 39% increase on the same period last year. In the commercial vehicle sector, both light and heavy commercial vehicles experienced growth in October, with LCV registrations showing a 42% increase for the month and are 5% up year-to-date. HGV registrations showed an 8% increase in October, but overall are 8% down on last year.”