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The Automotive Update: What does China’s slowing EV market mean for global sales?

What is happening in China’s electric vehicle (EV) market? How much is Uber investing in autonomous vehicle charging hubs? Can Europe build its own EV batteries? Tom Geggus, Autovista24 editor, discusses these points in The Automotive Update podcast. In this episode, Autovista24 analyses China’s slowing EV market and reveals the best-selling models in the country. Plus, how has Tesla avoided suspension of its dealer and manufacturer licence in the US? Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. China’s slowing EV market Globally, China accounts for 59.1% of battery-electric vehicle (BEV) sales and 70.3% of plug-in hybrid (PHEV) deliveries. But despite dominating the figures, the country saw its total EV numbers struggle in December. Figures rose by just 0.5%, according to the latest data from EV Volumes. Despite total plug-in sales increasing between January and December last year, this was not helped by the country’s PHEV market. It experienced a run of monthly declines from July onwards. One reason for this poor performance was the decline of BYD. The brand accounted for 33.3% of total EV sales in China during 2025 and dominated the PHEV market. Yet its sales were down 9.9% across the year. However, with new players entering the PHEV market, 2026 will see more brand diversification. This could help boost figures, while new BYD models will also help impress buyers. BEV sales rose by just 4% in December 2025 following a run of double-digit improvements. China’s carmakers will be hoping this is not the start of a new trend, especially if the PHEV market continues to struggle. Tesla avoids suspension Tesla has avoided a 30-day suspension of its dealer and manufacturer license in California. This follows the brand halting its use of the term ‘Autopilot’ in its vehicle marketing in the state. The Department of Motor Vehicles adopted a decision that the use of the term is ‘misleading and violates state law’. This is linked to Tesla’s use of Autopilot to describe its advanced driver-assistance systems. Uber invests in autonomous charging Uber Technologies will invest more than $100 million (€84.9 million) into autonomous vehicle charging hubs, according to Reuters. The company will deploy DC fast charging stations at its fleet depots and other locations throughout priority cities. This is expected to begin in the Los Angeles Bay Area as well as Dallas, before hitting other hubs. Uber will also work with charge point operators to establish ‘utilisation guarantee agreements’. This will support the rollout of hundreds of new chargers in cities across the world. EV charging offer in the Netherlands Leasing provider, Ayvens, has launched a new EV charging offering. Ayvens Power promises customers in the Netherlands access to over one million charging points across Europe, spanning different operators. Drivers will get real-time availability and pricing details before arrival. Meanwhile, a fleet portal will provide charging insights, cost visibility and reporting tools. The solution is due to roll out in France, Germany, Italy, Belgium, and the UK later in 2026. Can Europe build EV batteries? Yann Vincent, CEO of the Automotive Cells Company (ACC), has questioned who will make batteries for Europe’s domestic carmakers. ‘One crucial question remains: who will manufacture the batteries for European cars?’ Vincent asked. ‘Asian players, particularly Chinese giants, as is already the case for 99% of them? At the risk of putting the strategic independence of European car manufacturers solely in the hands of BYD, CATL, LG, etc?’. The CEO also confirmed that the ramp-up of ACC’s gigafactory in Hauts-de-France is taking longer and costing more than expected. This is weakening the company’s financial position. He also stated the goal of building the factory was ‘too close to give up on.’
Car lights inside of a tunnel.| Aftermarket

News

The road ahead: Residual value trends and the next market shift

A tense and uncertain economic environment is increasing pressure on Europe’s automotive market. But how will this affect residual values (RVs)? In a new webinar, Autovista Group experts discussed emerging trends and used-car impacts with Autovista24 journalist, Tom Hooker. RVs across Europe have continued to decline in 2025, amid falling used-car prices and an unstable economic environment. Meanwhile, powertrains are seeing varied performances, with one particular technology providing a surprise. But is this decline expected to continue into 2026? Autovista Group’s latest webinar, The road ahead: Residual value trends and the next market shift, answered this questions. The panel featured Dr Anne Lange, product director, valuation apps at Autovista Group, Robert Madas, regional head of valuations (DACH and CEE)​ at Autovista Group and Javier Salgado, director of valuations and forecast experts at Autovista Group. https://www.youtube.com/watch?v=o9ZEJQtcbHk European market faces uncertainty In the first half of 2025, Europe’s economy appeared to be stabilising after a period of stagnation. However, Lange showed how both inflation and the consumer price index have risen. This is mainly due to ongoing geopolitical tensions and conflicts. These trends have hurt the automotive industry. Stagnating economies have led to affordability issues and reduced investment. Additionally, ongoing tariff negotiations have caused delays in investment and supply. There has also been a market push for more affordable battery-electric vehicles (BEVs). Meanwhile, the market has seen battery technology become cheaper and more efficient. ‘We are in a phase of a lot of technological challenges. We have a massive electric vehicle (EV) push that is putting pressure on manufacturers to become more profitable,’ Lange noted. Furthermore, used-car prices are still dropping, albeit at a slower rate. This is despite an apparent stabilising trend in the first half of 2025. Yet, the uncertain economic environment was just one factor affecting this decline. Residual value decline expected RVs presented as a percentage of new list price (%RV) in most of Europe’s major used-car markets have continually fallen. However, the pace of this descent has now slowed compared to previous years. Madas explained that this year, %RVs remain well under 2024 levels. They are also under those recorded in 2023, 2022 and 2021 when %RVs were greatly inflated. This can be seen as a continuous market normalisation following the COVID-19 pandemic and the supply crisis. Specifically, there is growing pressure on three-to four-year-old vehicles. This age group has seen an increasing number of stock days and price changes over the last few months across all powertrains. BEVs still sell the slowest and record the highest amount of price changes in this age group, followed by plug-in hybrids (PHEVs). Overall, pressure on %RVs is forecast to remain across Europe’s major used-car markets in 2026. In particular, passenger cars at 36 months of age and above will be affected more than younger vehicles. ‘The market outlook for 2026 is still negative. We expect some more adjustments, but at a slower pace,’ Madas stated. Increasing market pressure Madas then showed how %RVs for vehicle age groups have developed differently over the last four years. The youngest used vehicles have seen %RVs reach 2021 levels in many markets. This has been caused by supply exceeding demand. Meanwhile, %RVs of cars aged 36 months and above are still relatively high. There is significant room for correction, as supply levels are expected to return in this age group. This is due to recovering new-car registrations in 2023, following particularly weak years in 2021 and 2022. Madas broke %RVs down by powertrain, where he noted that BEVs have struggled. Meanwhile, PHEVs have performed significantly better. In some markets, such as Germany, younger PHEVs have developed better than BEVs, causing the gap between the two technologies to widen. This overarching trend in Europe is caused by differences in supply. PHEVs have considerably smaller volumes in the used-car market and can be better absorbed by current demand than BEVs. Finding the fleet recipe However, Salgado pointed out that these trends do not necessarily translate directly into individual fleets. ‘Most market changes are already included in our forecast values. Ideally, reforecasts should stay quite stable, which would show that our assumptions were accurate when we first forecasted the value of the vehicle,’ Salgado commented. With most leases in Europe lasting around three and a half years, the first forecast is completed long before the car reaches the used market. When conditions change, such as demand or stock levels, forecasts are updated to include those new elements. Salgado then presented two artificial fleets of around 10,000 vehicles in Spain and Germany, with analysis completed in each quarter. The %RV of both fleets remained stable over the last year. The Spanish fleet saw the biggest change, with a small 0.5 percentage point decline. He highlighted that every fleet is unique. Even in one country, results can change depending on the powertrain or brand perception. Salgado also showed that while PHEV %RVs have provided a surprise, they are evolving similarly to petrol and diesel models in some fleets. Moreover, in this artificial fleet, full-hybrid values saw a comparatively larger drop at the end of the lease contract. This is despite the technology maintaining the highest %RVs of any powertrain in Europe. Enjoyed The road ahead: Residual value trends and the next market shift? Then sign up for Autovista Group’s next webinar: Global new-car market outlook 2026. It will take place on 25 November 2025 at 09:30 BST / 10:30 CET. Register for your place today.
Graphic showing vehicle depreciation| Insurance

News

What is depreciation?

Vehicle depreciation affects every part of the automotive industry, providing clarity on profitability and financial risk. But how can this be used to benefit both companies and consumers? Tom Hooker, Autovista24 journalist, explains. From manufacturers planning models, to customers collecting a car, and businesses devising fleet strategies, depreciation is central to understanding value. It means buyers and sellers can get to grips with how much money a vehicle may lose. How is it calculated, where does it tie into residual values (RVs), and what makes depreciation such a crucial topic? https://www.youtube.com/watch?v=DEp0a1BfOI4&feature=youtu.be Understanding depreciation Depreciation is the amount of value a car loses over time. This can be calculated by subtracting the absolute RV from the new list price. The absolute RV represents the car's monetary value after a defined time and mileage. For example, a car may cost €40,000 brand new. After three years and 60,000km it might see an absolute RV of €18,000. This means a depreciation rate of €22,000, or 55% of its list price. Importantly, the rate of a car’s depreciation is not linear. Cars lose value more rapidly in the years following registration. This rate of decline then slows over time. However, depreciation is not the same for all cars. Factors such as age, mileage, powertrain, competitors, condition, design, service history, reliability, warranty length, fuel economy, owners, and volume can all affect depreciation. Understanding depreciation is beneficial for sellers and buyers. Sellers can better calculate financial risks. Fleet, leasing, and finance companies can decode the biggest points of depreciation and try to minimise their losses. Meanwhile, buyers who focus on cars with lower depreciation rates will take on less financial risk. This can mean getting more money back at the point of resale. Mainstream versus premium For example, comparing two compact crossover SUVs, one premium and the other mainstream, reveals the different rates of depreciation. The exemplar premium model has a list price of €55,900. After two years and 40,000km, it holds on to 58.4% of its list price, or €32,650 in absolute terms. Meanwhile, the mainstream model has a much lower list price of €43,050. However, it also retains less value at 49.8% or €21,450. While the premium model loses €23,250 after two years, the mainstream model loses €21,600. So, even with the premium car’s higher percentage and absolute RVs, its depreciation is still comparatively higher. However, if the mainstream model had a worse rate of value retention, it could indicate a desirability issue. How is depreciation used? Carmakers can compare the depreciation of one of their more luxurious models to a compact car or a direct competitor. However, this does not provide the full picture, as the two vehicles may have vastly different production costs. Understanding depreciation is also vital for fleet and leasing companies. It helps these businesses compose their fleets, with lower levels of depreciation meaning less loss. Finance companies and banks also use this metric. With accurate depreciation forecasts enabling risk and price assessment, they can manage interest rates and risk premiums accordingly. In summary, depreciation is the counterpart to residual values. It gives another lens into used-car performance, depending on the strategic focus of the company or individual.

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