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What is an infotainment system?

Technological advances have rendered older in-car entertainment systems effectively obsolete. Now, carmakers combine entertainment and information as a central point of interior design. Autovista24 special content editor Phil Curry examines the rise of the infotainment system. The rapid development of technology has replaced in-vehicle cassette and CD players with new systems. While music streaming meant losing bulky radio units, the need to display more driver information required bigger screens.   By combining information and entertainment, the infotainment system has been a step forward for interior vehicle design and functionality. These systems are now a staple of modern cars, but some developments have been a cause for concern.  https://youtu.be/yVLCP0bfm-0 Growth of the infotainment system  With the development of touchscreen technology, integrating displays into vehicles for data and control access is a logical step. These screens provide more than just music playback. They also offer access to a wide range of systems.  These displays can provide navigation, views from external-facing cameras, as well as battery charge and health in electric vehicles (EVs). Many also feature Bluetooth connection for calls and smartphone integration. This allows users to bring their own music, apps and personal settings into the car.   Meanwhile, the infotainment system can act as a control location for certain vehicle functions. Menus and sub-menus provide detailed access to advanced driver-assistance systems (ADAS), vehicle customisation, driver profiles, and more.  Some carmakers have even opted to reduce or remove physical buttons for certain systems. This produces a cleaner and sleeker interior design, but can also lead to potential safety issues.  Are screens a distraction?  The ability of an infotainment system to house various vehicle controls can free up space inside a car. However, with some controls buried in sub-menus, out of easy reach of the driver, there are concerns around distraction.  Climate control, driving profiles, heated seats, and regenerative braking levels in EVs can be reduced from physical to digital buttons. But searching for these settings on a touchscreen can mean less focus on the road.   Research published by  TRL, on behalf of safety charity IAM Roadsmart in 2020, highlighted these concerns. Findings showed that driving performance was more negatively impacted when using touch controls compared with voice control.   Study participants were able to keep their eyes on the road more when using voice control than touch control. They were also more likely to identify stimuli that required attention. Despite this, most participants in the study reported using touch rather than voice control in their real-world driving.  Ensuring infotainment system safety  The concerns over driver distraction have led to Euro NCAP making a button-based request of carmakers for 2026. The safety body is asking manufacturers to either offer physical controls or dedicate a fixed portion of the cabin display to primary driving functions. This includes the horn, indicators, hazard lights, windscreen wipers and headlights.   So, the road ahead looks to be a matter of balance when it comes to infotainment systems. The technology will still need to support an increasing number of vehicle capabilities while also meeting higher consumer expectations. However, this will need to be levelled with control accessibility and driver attention.   
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The Automotive Update: What fleets learnt about electromobility at Flotte

Fleets flocked to Flotte in Germany, with industry experts taking to the stage to share vital insights. Autovista24 editor Tom Geggus finds out what happened at the event in the latest Automotive Update podcast. In this episode, Dr Christof Engelskirchen, chief economist and director of professional services, Europe, JD Power, shared his Flotte insights. This includes electrification, the role of fleets, and the opportunities and risks for these businesses. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Fleets and Flotte Taking place between 25 and 26 March in Düsseldorf, Germany, Flotte welcomes Germany’s fleet industry experts and decision makers. Among them was a team from JD Power, including Dr Christof Engelskirchen, who gave a presentation at Flotte. His session was titled ‘E-mobility in the headwinds – fleets as a beacon of hope and risk factor’. Speaking with Autovista24 editor Tom Geggus, he outlined some of the major points from this presentation. Of all the topics that could be presented to a room full of fleet professionals, one stood out: electrification. Fleets play an important role in the push towards electric vehicles, while the technology presents big risks and opportunities. Fleets behind the steering wheel In major EU new-car markets, electrification continues to be a subject in the headlights. Battery-electric vehicles (BEVs) currently make up under 30% of new-car registrations in each of Germany, France, Italy and Spain, according to ACEA. ‘That is a long way to go when you consider what the EU has been prescribing, which used to be a 100% tailpipe CO2 emission reduction by 2035 and is now becoming a 90% reduction,’ Engelskirchen said. ‘So, we have that gap that needs to be bridged.’ One of the biggest markets in the region, contributing heavily to the powertrain development, is Germany. With a large fleet industry making a significant proportion of registrations, these businesses will be vital to electrification. Weighing things up at Flotte There are sizeable opportunities for fleets within this transformation. Engelskirchen outlined that one of the biggest opportunities is the additional volume that is running through leasing companies and banks. Other buyers, such as private consumers and other companies, may not want to hold BEV asset risks. But this is not a result of disliking the powertrain. It is because it is not their core business to manage asset risks. Instead, this is the business of banks and leasing companies, Engelskirchen outlined. Leasing companies are now shifting their portfolios from what was 95% internal-combustion engine vehicles towards a greater balance. By 2035, it is conceivable that these fleets will have changed massively in favour of BEVs. However, this transition brings about its own risks. ‘You do need to get your head around the different residual value and depreciation profiles of electric vehicles. It is very dynamic,’ said Engelskirchen. ‘It certainly requires additional variables to consider in your risk management.’
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The Automotive Update: The changing fortunes of Chinese and European EV markets

How did the Chinese and European electric vehicle (EV) markets perform at the start of 2026? Plus, which manufacturers are speeding up plug-in vehicle charging? Tom Hooker, Autovista24 journalist, presents the latest episode of the Automotive Update. In this episode, Autovista24 looks at the varying performances of the Chinese and European EV markets. Plus, how are carmakers speeding up EV charging? Also, an insight into which manufacturers are turning to robotics and AI for use in their production lines. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. China sees EV struggles China’s EV market recorded a decline of 27.1% in January, according to the latest data from EV Volumes. Both the plug-in hybrid (PHEV) and battery-electric vehicle (BEV) sectors saw sales decline year on year. The results were reflected in the best-seller tables, where mainstream models struggled. The Xiaomi YU7 was the leading BEV in January, with a dominant display. It  was some way ahead of the second-placed Nio ES8. The Tesla Model Y finished third. Meanwhile, the PHEV table saw BYD dominance slip away. Leading the charge was the Fang Chen Bao Tai 7, a BYD sub-brand and model. It was ahead of the Aito M7, while the BYD Song Pro finished third in the month. Europe’s EV market on a high Conversely, Europe’s EV sales grew, according to EV Volumes data. Sales were up 19.2% overall in January, with both BEVs and PHEVs seeing increases. PHEVs posted a 33.5% rise, while BEV deliveries increased by 12.7%. The Skoda Elroq was Europe’s best-selling BEV in January. It was followed by the combined results of the Renault 5 and Alpine A290, with the Tesla Model Y in third. In the PHEV market, two Chinese models led the way. The BYD Seal U came first, ahead of the Jaecoo J7. Both PHEVs were well ahead of the Volvo XC60 in third place. Even faster battery charging The Denza Z9GT, a model from BYD’s premium marque, is set to arrive in Europe later this year. It could enable quicker charging times of up to 12 minutes. According to Denza, the Z9GT delivers a 10% to 70% charge in only five minutes, and a 10% to 97% refill in just nine minutes. The carmaker also quoted a 20% to 97% recharge in 12 minutes, even in temperatures around -30°C. Meanwhile, Chery has revealed its all-solid-state battery that can achieve a range of over 1,500km, Electrek reported. A robotic future? Renault is using an AI-trained humanoid robot, called Calvin, to help it build cars. It was developed by French robotic firm Wandercraft. Renault plans to roll out a further 350 humanoid robots over the next 18 months, according to Auto Express. This comes as carmakers increasingly identify automation and robotics investment as a key response to rising costs and competitive pressures. A recent survey by ABB robotics revealed that 31% of vehicle manufacturers and suppliers felt this way.
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How AI, data and telematics are transforming commercial vehicle fleet operations

Commercial fleets have access to more accurate data, stronger system integration, and advanced artificial intelligence (AI) applications. How exactly will this improve efficiency and enhance fleet decisions? Autovista24 journalist Tom Hooker investigates. The face of global light-commercial vehicle (LCV) fleets is changing rapidly and becoming increasingly technological. Today, fleets have multiple data points, software systems and AI tools at their disposal. At this year’s Commercial Fleets Summit 2026, industry experts focused on the different ways these technologies can benefit businesses. This ranged from enabling predictive maintenance to AI-based driver coaching. However, unless developments like these actually resolve key fleet concerns, they will remain inconsequential. So, can a more connected fleet really improve on important metrics such as return on investment (ROI), productivity and uptime? Fleet productivity and the wider ecosystem For some, the future of connected fleets is about much more than the vehicle itself. ‘Today is not about having the best van. It is about having the integration of the whole system,’ explained Jeronimo Saiz, head of fleet operations at Kia Europe. ‘You need to look at not only purchasing the van, but also having the telematics, a fantastic upfit and the best financing partner. It is a huge advantage. You are going to save money with energy consumption, route planning, how and where you service the vehicle, and how you forecast,’ he added. From left to right: Ben Varey, commercial fleet expert at Nexus Communication. Jeronimo Saiz, head of fleet operations at Kia Europe. Thomas Herzog, head of key account management international, MAN Truck & Bus AG. Thomas Unger, chief marketing officer at Sortimo. Steven Schoefs, head of strategic relations at Nexus Communication For this advantage to come to fruition, fleet connectivity across the whole ecosystem is vital. Telematics partners, maintenance partners, and the vehicle itself all need to work together. However, for many, that potential is yet to be realised. ‘Most of the large fleets are not yet fully connected. We are not getting the very best out of what we could. Connectivity, together with AI, should drive savings, more efficiency and better fleet management,’ projected Saiz. Yet any advantages may not just appear in the balance sheet. With the help of AI, a more connected LCV fleet may present other material benefits. ‘When you talk about normal wear and tear, this is what I think could be the biggest advantage of AI, to reduce [unnecessary] stops,’ highlighted Thomas Herzog, head of key account management international, MAN Truck & Bus AG. ‘Yes, we make revenue in our workshops. But if we can reduce it and help to have the van only stop working once per year, then that is beneficial for all of us,’ he added. ‘What we are facing is the chance with AI to escape from routine work and daily routines to have more time and capacity to interact with customers.’ AI agents in fleets Some of the most advanced fleets are using AI to help operations. However, the effectiveness of these agents is still reliant on data from the field. ‘How do we see fleet management in the future? At the centre, there should be an AI agent that brings the data of various systems together,’ stated Fabian Seithel, associate vice president of sales and business development EMEA at Geotab. Fabian Seithel, associate vice president of sales and business development EMEA at Geotab ‘Today, data is siloed far too much. That makes it very difficult for AI to act. A lot of it depends on input. So, the future should be an AI agent acting independently but supervised by a fleet manager who sets the tone for the agent,’ he commented. A clear shift This marks a clear shift away from using multiple telematic systems and towards more unified and automated operations. ‘Telematics started with track and trace a long time ago. Then it moved to data extraction: I want to know the fuel level [of a van in my fleet] or a fault code. But now, we are in the AI-powered phase,’ Seithel said. These systems can observe, plan, act and evaluate. For fleets, this means they can identify a problem, decide what to do and trigger the next step. Seithel cited maintenance as a clear example, outlining Geotab’s analysis of data from 5.8 million vehicles. The aim was to understand breakdown patterns and engine faults, providing an actionable risk model for fleets. ‘So, we quantify the risk of breakdown, such as 50%, then a fleet can use those predictions. Some fleets are more risk averse then others. For example, maybe in December, a delivery fleet takes the risk of a 50% breakdown to get as many parcels out as possible. We cannot drive the decision, but we can quantify the risk and explain it using contextual data,’ he explained. Another use case presented was a video-based AI coach. Observing driver behaviour, the coach could give instructions in real-time. For example, it can suggest removing a distraction or taking a break. Goldmine of fleet data Some experts argued that a major issue commercial fleets face is getting concrete value from multiple data points. ‘Every fleet is sitting on a goldmine of data. The issue we have across the industry is getting the value out. That data is a challenge for us, because the industry keeps calling what we call faster clipboards,’ said Danielle Walsh, founder and CEO of Clearly. ‘Back in the day, we held a physical clipboard and wrote down what was wrong with our fleet and how it could be managed. We then moved to the electronic age, putting data into a spreadsheet or an electronic form,’ she said. ‘That moved into the connected age, with a lot of connectivity, and we created dashboards or spreadsheets in the cloud. Now, we are in the intelligence era, and we are stuck,’ Walsh stated. She highlighted that on paper, a vehicle may appear to be in an acceptable condition. Yet, once maintenance, fuel, and finance data are combined, the story can change. Perhaps the vehicle needed servicing, not replacement, for example. ‘You can do three things when you connect your data. First, you can see what drives your cost. Is it across driver behaviour, the maintenance or the asset? Second, you know when to replace the asset, not when the lease says so. Instead, drive the decision by data. Third, make decisions on data, not policy,’ said Walsh. Ultimately, better fleet data should not just confirm prior assumptions but inform what decisions are made. Tactical fleet electrification After fleet managers discover the recommended outcomes, the next step is to act. However, when it comes to electrification, there are barriers to overcome in building confidence in these decisions. ‘The fleets responsible for ordering the vehicles have environmental, social and governance (ESG) targets, net-zero targets, or regulations asking them to electrify faster,’ outlined Alfred Richard, co-founder and CEO of Nelson. Alfred Richard, co-founder and CEO of Nelson ‘However, you have an operations manager slowing down the entire process because they are afraid of the productivity loss. How do you convince managers at the head office level and site level?’ he questioned. The solution may be connected fleet software. With more transparency and openness, the gap between aspirational fleet managers and hesitant site teams could be bridged. Before making decisions, Richard argued that fleets need to simulate real-world scenarios using a digital twin. Driver profiles, charging needs and route patterns all matter. ‘Simulation is a powerful thing. When you know what is happening, when you can control your current usage, you may anticipate what comes next. Thanks to all the existing data layers, you can build a digital twin of your fleet and simulate scenarios,’ he said. This can also help avoid oversimplified fleet strategies. Richard warned that when talking about the transition to electric LCVs, there is no one-size-fits-all solution. ‘You can run scenarios on the digital twin and see what the priority is. The goal is to know your fleet’s EV suitability at a global scale, but also have information driver by driver. It is not about electrifying everyone. It is about electrifying the suitable drivers,’ he said. Connected fleets are moving into a more active and autonomous phase. Fleet managers still want control, but less clutter. Accessing actionable insights coming from one unified source will be key. Those who can achieve this will have a distinct advantage over others.
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The Automotive Update: EU reveals Industrial Accelerator Act proposal

What can be expected from the much-anticipated Industrial Accelerator Act (IAA)? Plus, an exclusive report from the Commercial Fleets Summit. Tom Geggus, Autovista24 editor, presents the Automotive Update podcast. This episode takes a look at the recently unveiled IAA and what it could mean for the European automotive industry. Also, Autovista24 journalist Tom Hooker dials in from the Commercial Fleets Summit, hosted in Brussels. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. EU reveals the Industrial Accelerator Act The European Commission has proposed the long-anticipated Industrial Accelerator Act. Central to the legislation is the enhancement of localised EU industrial competitiveness and promotion of low-carbon production methods. The IAA aims to increase local value creation and strengthen the region’s industrial base. This comes amid perceived unfair global competition and dependencies on non-EU suppliers. The act will look to boost manufacturing's share of EU GDP to 20% by 2035. However, the IAA also outlines that the EU should remain open to outside investment. A Q&A published by the European Commission highlighted that low-carbon requirements will be created for steel and aluminium used by the automotive industry. ‘Made in the EU’ standards will also apply to aluminium. Provisions will also apply to electric vehicles and their components. The proposal builds on previous EU legislation, further streamlining the deployment of clean technologies across numerous European industries. For the automotive sector, the proposal follows last year’s Automotive Package announcement. The IAA will be negotiated by the European Parliament, and the Council of the European Union, before its adoption.  Commercial Fleets Summit reveals The Commercial Fleets Summit is a two-day international event held in Brussels. It focuses on a wide range of key issues and trends impacting the global commercial vehicle sector. Several key themes have already emerged at this year’s event, centred specifically on light-commercial vehicles. These included environmental regulation, fleet electrification, plus the incorporation of connected vehicles and use of artificial intelligence (AI). In terms of electrification, discussions centred on issues surrounding charging infrastructure efficiency. ‘There is less talk about if fleets are going to electrify. Instead, it is more about how fast, and how they are actually going to achieve that,’ stated Autovista24 journalist Tom Hooker, from the event. ‘Charging infrastructure is being seen as both a bottleneck and an opportunity. You then obviously have the interaction with the electricity grid, and this is certainly emerging as a new consideration,’ he added. The event also touched upon the future for commercial fleets. Looking ahead, these could be further integrated with digital ecosystems, with brand loyalty becoming less of a factor. Instead, digital-led frameworks could become increasingly important when selecting vehicle type and brand. Additionally, technology and AI will play an increasingly crucial role. ‘I think one of the first AI use cases will be helping fleet operators to manage and reduce fuel costs,’ Hooker said. ‘This, in turn, is having a high return on investments in some other areas. One thing I think I will hear more about later, is route optimisation and energy efficiency gains.’
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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.’
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The Automotive Update: Carmakers accelerate AI applications at CES 2026

Which carmakers and technology companies are betting big on artificial intelligence (AI), and how do they plan to use it? Autovista24 editor Tom Geggus picks out key talking points from this year’s CES in The Automotive Update podcast. Major automotive companies are integrating AI into their vehicles. This means technology companies such as Nvidia are becoming integral partners in this seismic industry shift. However, they are not alone, as automotive suppliers are looking to keep up. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Mercedes-Benz leans into AI with Nvidia Mercedes-Benz used CES 2026 to confirm that the new CLA will feature the AI-powered Mercedes-Benz Operating System (MB.OS). This advanced driver-assistance(ADAS) technology is powered by Nvidia’s full-stack drive software, AI infrastructure and compute power. This could assist over-the-air updates (OTA), including planned upgrades to the MB.Drive drive-assistance technology. This is aimed at enabling advanced SAE Level 2 capabilities in complex urban settings.  https://www.youtube.com/watch?v=_tJMYyVaOSw Mercedes-Benz confirmed its electric GLC will utilise MB.OS, as well as AI from Microsoft and Google in its infotainment system. The model is set to arrive in the US in the second half of this year.  ‘As the automotive industry embraces physical AI, Nvidia is the intelligence backbone that makes every vehicle programmable, updatable and perpetually improving through data and software,’ said Ali Kani, vice president of automotive at Nvidia. Nvidia is also working on a collection of open-source AI models called Alpamayo family, designed to accelerate autonomous vehicle development. Plus, the company announced that its Drive Hyperion ecosystem will expand to include more automotive companies. This comes as it embraces advanced SAE Level 4 and full self-driving technology.  Afeela and AI assistants Sony Honda Mobility brought a new vehicle to CES 2026, the Afeela Prototype 2026. A production version of the model could launch in the US in 2028. Its predecessor, the Afeela 1, has been available for reservations in California since January 2025. https://www.youtube.com/watch?v=tMkmiZS0brQ Delivery hubs are set to open this spring in the US state. Arizona will see sales in 2027, with Japan due to see deliveries in the first half of that year. Sony Honda Mobility also unveiled the Afeela personal agent, an interactive, conversational AI. It will use Microsoft Azure OpenAI to provide personalised dialogue.  BMW gave a demo of its AI-powered personal assistant. Built on Amazon’s Alexa+ technology, the assistant was presented within the Neue Klasse debut model, the BMW iX3.  Users can interact with the car’s large language model to control in-vehicle operations. The assistant also has access to information beyond the car, allowing it to answer a broad range of questions. This technology will be gradually rolled out in Germany and the US in the second half of 2026.   https://www.youtube.com/watch?v=3JQu-H-iJqg Ford also announced it will roll out an intelligent assistant. It will be available on users’ phones before it reaches their cars. The Ford and Lincoln apps will support the technology beginning in the first half of this year. The carmaker said it plans to reach up to eight million customers.  The Ford AI Assistant promises to be capable of providing contextually useful information, such as vehicle storage capacity. This technology looks set to arrive in Ford and Lincoln vehicles by 2027.    Source: Ford Architecture and autonomy Geely brought its full-domain AI 2.0 to CES 2026. This unified vehicle-wide architecture utilises a central intelligence engine, capable of operating all vehicle functions. The autonomous driving system, Geely Afari Smart Driving, uses AI and large-scale real-world driving data. It features high-performance sensors, plus hardware for confident and safe driving.  ‘AI is reshaping the automotive industry in many ways, from powertrains and components to a systematic reconstruction of mobility ecosystems and lifestyles,’ said Jerry Gan, CEO of Geely Auto Group. Lucid confirmed a union with Uber and physical-AI company Nuro to produce vehicles for a global robotaxi service. Autonomous on-road testing began in December, ahead of an expected launch in the San Francisco Bay Area later this year. Source: Lucid Suppliers starring at CES Bosch showcased an all-in-one, personalised, AI-based cockpit. Life-like communication appears possible via large language model. Meanwhile, a visual language model can interpret what is happening inside and outside the vehicle.  Qualcomm confirmed it is working with ZF to deliver scalable ADAS solutions. Leapmotor’s D19 will use Qualcomm’s Snapdragon Elite platform. It combines cockpit, driver assistance, body control and connectivity into one system. The supplier also plans to expand its collaboration with Google to develop software-defined vehicles while accelerating in-vehicle, agentic AI technology.   ‘As the automotive industry rapidly evolves into an AI-powered, software-defined future, our continued collaboration is more critical than ever,’ said Patrick Brady, vice president, engineering at Google. LG’s Mobility Display Solution turns the windshield into an intelligent interface. The Automotive Vision Solution enhances safety and delivers context-aware information via Vision AI.  The In-Vehicle Entertainment Solution provides personalised content recommendations, memory-based media, plusreal-time translation.  ‘We are bringing our future mobility vision to life by embedding AI across our solutions – many of which, including in-cabin sensing, are already in production with global OEMs,’ said Eun Seok-hyun, president of the LG Vehicle Solution Company. ‘By accelerating these innovations to market, we aim to pioneer the era of AI-driven vehicles in the years ahead.’
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Can carmakers steer towards a successful 2026?

What has defined 2025 for carmakers? Will these trends continue into 2026? Enterprise sales director Thomas Luxenburger considers the upsides and downsides with Autovista24 editor Tom Geggus. What do you think the big trends have been for OEMs in 2025? We need to distinguish between the established OEMs and the newer players, including those trying to strengthen their position. Established carmakers are struggling with declining margins as they lose market share, particularly in former emerging markets. In China, there is fierce competition between importers and domestic brands, which means lots of pressure on margins. Established brands have been losing local market share, resulting in smaller margins. This means these companies have less money to invest back into development. The timing could not be worse, as these brands need to put money into the electric vehicle (EV) transition. Carmakers are also at the forefront of more protectionist politics and policies, such as tariffs. There has also been increased supply chain tension this year, impacting chips and rare earth metals. To remain competitive, companies are looking to balance the books elsewhere. This can include experimenting with direct sales models or monetising software and services. They have also looked to cut staffing and production costs, with manufacturing moved to more affordable locations. Carmaker competition So, new-car markets have seen increased competition this year. How has this impacted pricing, operational strategies and future products? In terms of development, established players have historically needed up to seven years to bring a new model to market. Meanwhile, new players can develop their cars much faster. Software-defined vehicles take far less time to launch and often cost less. This is pushing established OEMs to accelerate their development process and bring more affordable vehicles to the market. Think just about earlier generations of battery-electric vehicles (BEVs), established brands offered these at a higher price point. These models have now entered the used-car market and have changed hands once or even twice. But their residual values (RVs) are under pressure from a higher cost-new price. But now, established brands are under more pressure to increase new-car sales volumes, which means investing in more affordable cars. This means a lower list price between €20,000 and €30,000. Direct sales model hype? You mentioned direct sales models earlier. What have carmakers learnt about these systems in 2025? Following the COVID-19 pandemic, there was a lot of hype for carmakers to do everything by themselves. Some set up a flagship store in a big city and thought brand awareness would secure the business. But now perspectives on that approach have changed. Previously, I was surprised that a country like Germany did not see larger dealer groups investing in the market from abroad. However, nowadays there is a very different landscape with much larger groups acquiring medium-sized dealers. Additionally, dealers are quite open to new logos and Chinese brands. This is a totally different situation with larger dealer groups becoming increasingly important and having even greater influence. Meanwhile, new brands are battling each other to acquire their interest. In this landscape with margins under pressure, direct sales are being considered as an opportunity for OEMs. Premium brands could run direct sales models, but mass market ones might struggle more. For these carmakers, having dealer groups in the field and closer to the customer is more advantageous. This is because the risk is carried by the dealer, not the carmaker. If the current socioeconomic situation were more stable, the direct sales model would probably be more advanced. Affordable all-electric cars Carmakers have been looking to affordable BEVs to stay competitive. Do you think this trend will continue? The benefit of my job is getting to see cars at an early stage, so we know what is coming down the pipe. There is obviously an appetite to bring more affordable cars into the market. Also, battery chemistries and technologies are advancing, making it possible to reach target groups at a lower price point. In the coming years, we will see more affordable cars for commuting in urban areas. Even so, carmakers still need to earn money to justify the investment in affordable models, and only volume will cover this. To reach optimum volumes, there must be marketing, with advertising to reveal this new generation of cars. The price point for mobility is the key. Consumers will need to ask themselves what they really need in the day to day. Is a 500km BEV necessary for urban commuting, or would a solar panel and a home charger make more sense? But the used-car market is going to play an important role in the future. In the future, internal-combustion engine cars and affordable BEVs will compete in this space in terms of price attractiveness. I think OEMs need to think about a second or a third used cycle. This means supporting dealerships with the likes of a subscription model for used BEVs. Away from the new car market, this would be a new approach for the powertrain. This would certainly help while registrations continue to recover from a turbulent few years. Commercial vehicle connection What about the light-commercial vehicle (LCV) sector, where the electric transition seems far slower. Could 2026 be the year this changes? I would hope so. You know me, I am LCV addicted. I spoke with some of our colleagues to get their electric LCV adoption forecast, and it will take time. We will not see a significant move in 2026. Change will maybe start in 2027 until the end of the decade. I think it will take much more time beyond 2030 for potential customers to become fully aware of the powertrain. But I do know OEMs that have not previously offered electric LCVs and are now investigating the technology. Elsewhere, the hydrogen discussion has become a bit stuck for LCVs. For heavy trucks, it could be a solution in the future, but I would not expect that personally. I think OEMs will invest in electric LCVs. With the legislation and regulations in the EU, I think this technology will be the way forward. It will take a bit of time, but it will become more important, particularly for the total cost of ownership. Carmakers and supply chains You mentioned advancing automotive technology several times. The need for more advanced parts, like chips, has increased accordingly. But how can OEMs protect themselves when supply chains for these parts become disrupted? It will remain a real challenge. I think OEMs have responded by increasing inventory buffers. We saw this with the disruption of Nexperia chips, where many carmakers tried to fast-track alternatives. It also depends on the contracts and the supply in general. But OEMs are now seeing more reason to spread their risk. Just counting on one supplier can result in quite a mess. Companies may invest in long-term contracts to ensure supply, as well as buffers and alternatives. Some carmakers may even look to get rid of some technology. I think development will now emphasise reducing the number of control units a car needs. Less technology means less reliance on these supply chains. These countermeasures may help OEMs ride the waves of supply chain disruption, but they cannot stop the geopolitical storm. International tensions have a huge impact on the automotive industry, and that is unlikely to change in the short term. The opportunities and challenges With all that in mind, what are the biggest challenges and the greatest opportunities for OEMs in 2026? We can start with opportunities. It is generally hard to say, because I do not have a crystal ball here on my desk. However, I believe that the key lies in the used-car business. This can help support decreasing new-car sales margins. With the right pricing, taking care of RV development could be a pillar for securing the business or covering decreasing margins. A well-established, certified pre-owned programme could also help. It is about developing, coaching, and teaching in the established dealer landscape and taking care of these programmes. They could support a stable value of the cars in the market. Yet, I think the greatest opportunity is to make faster development cycles. The market requires that we move faster technologically. However, this must be done purposefully, not randomly or sporadically. A well-thought-out transition to a new technology will take time. I think 2026 will be another year of transition. Established brands will need to reduce costs, optimise their workflows and strengthen their value chains. Newcomers wanting to make an impact in Europe will look to acquire dealer groups and bring volume into the market. This increased competition will likely be reflected in pricing strategies. New brands will be able to quickly gain ground by utilising customer trust in known dealer groups. So, I am not sure whether all OEMs will survive to the end of the decade. There may be another wave of consolidation on the horizon.
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The Automotive Update: Renault and Ford collaboration plus global EV enthusiasm cools 

What has drawn two automotive giants to collaborate on future vehicles? How are delays impacting the EU emissions target discussions? Autovista24 special content editor Phil Curry discusses the week’s biggest stories in The Automotive Update podcast. In the latest episode, further details on the seismic collaboration between Renault and Ford. Also, a look at what the automotive industry wants to see in the delayed EU discussions on 2035 CO2 targets. Plus, is electric vehicle (EV) interest cooling, and what could renewed negotiations between China and the EU mean for Chinese Built EVs. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Renault and Ford join forces on EVs Ford is to partner with Renault on development of battery-electric vehicles (BEVs) and all-electric vans. The agreement will see the development of two Ford-branded EVs based on the Ampere platform that underpins the Renault 5 and Renault 4. These vehicles will be produced at Renault’s ElectriCity manufacturing plant in the north of France.  Designed by Ford, and developed with Renault Group, the two cars will feature distinctive driving dynamics, authentic Ford-brand DNA and intuitive experiences. The first of the two vehicles is expected in showrooms in early 2028.  The RAC has predicted that the partnership could signal a return for the Ford Fiesta. The model was discontinued in 2023, as the carmaker focused on larger vehicles. However, a revival in the small car market could see the popular vehicle return, with the underpinnings of the Renault 5.    EU emissions target delay The European Commission has delayed discussions of a new proposal to potentially revise the EU’s 2035 ban on the sale of new CO₂-emitting cars and vans. According to Reuters, talks are now expected to happen on 16 December. The postponement comes as policymakers and industry leaders call for adjustments to the current strategy. ACEA director general Sigrid de Vries recently highlighted the industry’s slow post-COVID-19 recovery and limited investment in EV charging infrastructure. She also argued that the 2030 and 2035 emissions targets are no longer realistic. De Vries offered five recommendations, including stronger consumer incentives , and greater technological neutrality. Environmental groups oppose the easing of restrictions. Lucien Mathieu, cars director at Transport & Environment, warned against permitting biofuels and plug-in hybrids (PHEVs) beyond 2035. ’[The new proposals]’may give them short-term comfort, but strategically it is a mistake that risks pushing the European industry into a dead end,’ he stated. Chinese EV tariff talks resume China's commerce ministry has stated that negotiations with the EU over a minimum price plan for Chinese-built electric vehicles have restarted, Reuters has reported. The ministry has also urged the bloc not to talk independently with manufacturers. The EU approved tariffs of up to 45.3% in October 2024. This followed a European Commission investigation into whether Chinese carmakers were benefiting from unfair subsidies that could impact competition in Europe. China insists its manufacturers are simply more competitive than their European counterparts. As a result, Beijing has urged Brussels to accept a minimum price plan in place of tariffs.  Study reveals a return to ICE A new study by EY has revealed that many global car buyers are shifting back from EVs to internal combustion (ICE) models.  The EY Mobility Consumer Index shows that 50% of global car buyers intend to purchase an internal combustion engine vehicle in the next 24 months. This is an increase of 13 percentage points (pp) from 2024. In addition, battery-electric vehicle preference has fallen to 14pp, a drop of 10pp. Meanwhile hybrids preference had declined to 16%, down five percentage points. Range anxiety appears to continue to be one of the top barriers for consumers choosing EVs. According to the report, 29% of respondents cited this as their top concern, while 28% pointed to the lack of EV charging infrastructure.  New autonomous partnerships Mercedes-Benz and Momenta are ushering in the next stage of automated driving with the launch of an SAE Level 4 robotaxi service. The carmaker, together with its advanced driver assistance systems partner for China, is announcing this driverless shuttle service based on the new Mercedes-Benz S-Class.  Following an initial test phase in Abu Dhabi, the partners intend to roll out the service more broadly to other locations and markets.  Meanwhile Stellantis and mobility platform Bolt have entered a partnership. They will jointly explore the development and deployment of Level 4 autonomous vehicles for commercial operations across Europe. Automotive AI investment decline? By 2029, only 5% of carmakers will maintain strong, AI investment growth, a decline from over 95% today. That is the forecast from business and technology insights company, Gartner.  The firm predicts that only a handful of automotive companies will maintain ambitious AI initiatives after the next five years. Organisations with strong software foundations, technology awareness in its leadership, and a consistent very long-term focus on AI will pull ahead from the rest, creating a competitive AI divide.  Gartner predicts that by 2030, at least one manufacturer will achieve fully automated vehicle assembly, marking a historic shift in the automotive sector. 
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The Automotive Update: New EV incentives in Spain and tariff hope for VW Group

Spain launches a new national electric vehicle (EV) incentive framework. The EU reviews tariffs on Volkswagen (VW) Group’s countervailing duties. Also, a look into Zipcar’s potential UK exit. Autovista24 editor Tom Geggus goes behind the headlines in The Automotive Update podcast. In this week’s episode, Autovista24 is joined by Autovista Group’s regional head of valuation and insights, Ana Azofra. She offers her thoughts on Spain’s bold new EV incentive plans, and what they mean for the country’s new-car market. Also, a look into how the European Commission is reviewing tariffs on a made-in-China battery-electric vehicle (BEV) from VW Group. Finally, Zipcar looks to cease its UK operations. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Spain’s revamped EV inventive plan This week saw the formal unveiling of Spain’s new approach to EV incentives. Dubbed the Auto 2030 Plan, the scheme will replace the current MOVES funding framework, which ends on 31 December. The plan will allocate €400 million to aid direct purchases of electric cars. It will be rolled out from 1 January 2026, according to Motor.es. Under the Auto 2030 Plan, regional administrations will no longer control and allocate funds. Instead, the process will be directed by the central government. Another key change includes providing incentives at the point of purchase, as reported by EFE. The Auto 2030 Plan will direct €580 million from an EU-funded scheme to support industrial development. Additionally, €300 million will be made available to expand the country’s EV charging infrastructure. EU review of tariffs The European Commission is reviewing its tariffs on VW Group BEVs made in China. This follows VW Anhui, producer of the Cupra Tavascan, and SEAT, importer of the model, proposing a price undertaking. Since the EU implemented tariffs on BEVs made in China last year, the model has seen countervailing duties of 20.7%. This is on top of the existing 10% import duty. SEAT confirmed with Autovista24 that its proposal includes an annual import quota and a minimum import price. ‘If accepted, this would result in the non-application of countervailing duties on the Cupra Tavascan. The exemption will take effect once the European Commission accepts the undertaking and adopts the corresponding regulation,’ a spokesperson said. The process can be expected to take a few months. A spokesperson for the European Commission told Autovista24 that: ‘the door remains open for other companies to submit price undertaking offers, either jointly by groups of companies or by individual companies, as long as they adequately address the issue of Chinese subsidies.’ End of the road for Zipcar in the UK Zipcar, the car-sharing platform, looks set to close its UK operations by the end of this year. The Avis Budget-owned company has updated its UK site with a message for customers. ‘Zipcar proposes to cease operations in the UK, subject to formal consultation with affected employees. During this period, we will not be accepting new member applications,’ it reads.   Vehicles can still be booked and used up until 31 December 2025. Any new bookings are temporarily suspended beyond this date, pending the employee consultation. Zipcar operations in the US are not affected by this proposal, according to the company’s FAQs.
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The Automotive Update: Significant EV tax changes in UK and 2026 new-car market forecast

How will the UK’s Autumn budget impact the country’s electric vehicle (EV) industry? What can be expected from the global new-car market in 2026? Plus, the latest key EV battery production announcements. Autovista24 journalist Tom Hooker presents The Automotive Update podcast. In this week’s episode, a look at what the UK government’s budget means for drivers of EVs. Also, an expert-led webinar focused on new-car markets. Finally, the latest EV battery production news, unpacked. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. UK EV drivers face revamped tax framework The UK government has announced plans for a pay-per-mile tax on battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs). The latest budget outlined that BEVs will be charged 3p per mile, while PHEVs will pay 1.5p per mile, from 2028 onwards. Dubbed the Electric Vehicle Excise Duty (eVED), it will sit alongside the usual annual Vehicle Excise Duty (VED). EV owners will pay both the standard tax and the mileage-based charge. Drivers look to be required to input their annual mileage when renewing their vehicle tax. They can either pay the full amount in advance or spread payments across the year. At the end of the period, they will report their actual mileage. While some have welcomed changes to VED, there is dissent. Critics of the new plans warn that the additional charge could make EVs less appealing and may slow adoption rates. What to expect for new-car markets in 2026 Autovista Group’s latest webinar, Global new-car market outlook 2026, explored some key new-car market forecasts. https://www.youtube.com/watch?v=i-C26zAOiUU An expert panel discussed whether economic headwinds and supply-chain challenges could prevail into 2026. While gross domestic product is expected to fall in many markets as inflation remains mostly flat, EV adoption will continue. Additionally, the demand for electric powertrains is driving battery innovation. In particular, lithium iron phosphate (LFP) batteries can be expected to feature in a greater number of new electrified vehicles. The webinar also assessed the potential success of Chinese carmakers in the European market. Affordability and build quality emerged as key factors in dictating potential prosperity. These new brands look set to capture a greater share of the European EV market in 2026. The question is which ones will have the staying power to succeed. EV battery production developments CATL revealed it will train up to 4,000 workers to operate its €4.1 billion battery plant in Spain. According to Reuters, the site will begin production in late 2026, supplying batteries to Stellantis. It marks China’s biggest investment in Spain and is also backed by €300 million in EU funds. The project will be Spain’s biggest battery production facility when it is completed. Three more Spanish battery plants are planned, including projects by Envision AESC, Volkswagen’s (VW) PowerCo and Inobat. LG Chem and Sinopec announced a partnership to develop key materials for sodium-ion batteries, electrive reported. The two companies said the batteries produced would be used for applications in China and globally, including ‘low-speed’ EVs. Foxconn will expand its own battery production, according to electrive. The contract manufacturer plans to produce battery cells for EVs at its Taiwan facility. Finally, Panasonic Energy will supply batteries to Zoox, Amazon’s self-driving unit, Reuters reported. Deliveries will begin in early 2026 under a multi-year agreement. 
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What do fleets need to look out for in 2026?

What automotive trends have fleets navigated this year? What do these companies need to prepare for ahead of 2026? Tim Wellman, enterprise sales director at Autovista Group, answers these questions and more with Tom Geggus, editor of Autovista24. How have fleets been performing this year? What are their big takeaways from 2025? This year has been reasonably positive for fleet customers in general. Certainly, the post-pandemic supply shortages are well behind us, and new vehicle availability seems reasonable. I do see some movement in terms of who is taking market share in the fleet sector. We have seen some changes across selected fleet companies throughout 2025. But overall, the fleet sector seems a reasonably positive segment. Supply chains have been back in the news with the potential disruption of Nexperia chips, causing carmakers some alarm. Has it also concerned fleets? Fleet clients predominantly source their vehicles via OEMs. So, any manufacturer lead concerns will naturally impact fleet suppliers. Constriction on supply chains due to the Nexperia chip shortages will inevitably wash through to fleet operators. The COVID-19 pandemic was a huge lesson for the whole industry in terms of supply chains. How have fleets tried to prepare themselves for disruptions ahead? Post pandemic, we have seen significant valuation volatility, and the push and pull of supply and demand are playing their part. There certainly has been some stabilisation post pandemic, but not across all fuel types. There are still prominent spikes evident in our data when comparing battery-electric vehicles (BEVs), internal-combustion engines (ICEs) and plug-in hybrids (PHEVs). This typically varies by each European market. Fleet providers definitely have an appetite for data insights and intelligence around valuation movements. This is unsurprising given the overarching financial and regulatory frameworks mandating responsibility for the asset portfolios under their care. Fleets boosted by BEVs? Speaking of regulation, electrification has been a big deal for fleets. Do you think BEVs have provided them with positive results? What has the reality been of defleeting these models? The onward march to carbon net zero is critical, and fleets take up around 60% of new vehicle registrations across Europe. So, this is naturally going to be a BEV route to market for many consumers and businesses. Many all-electric registrations throughout Europe are driven by government grants, but also by advantageous breaks in company car taxation. This drives the adoption of cleaner, greener vehicles superbly well. However, there are some headwinds that interlace with all of this in terms of the used BEV market. While we see good numbers of all-electric registrations being driven to market by legislation, that does not exist for second-ownership. This is having a material impact on resale values that are under constant pressure. We have seen residual values (RVs) for BEVs impacted quite heavily this year, certainly in some European markets. Is there anything that fleets can do when it comes to observing those values? Every fleet operator needs to understand the month-to-month valuation movements in their asset portfolio. With the relevant insight and intelligence across those asset portfolios, fleet operators can make informed decisions on whether to extend the leasing agreements or look to remarket assets sooner. We are seeing an emerging trend among more fleet operators. They are now looking very closely at their remarketing efforts. Where it is evident, there is a disparity in resale values across European countries. It may be the case that a given tranche of vehicles may afford a better remarketing price in a neighbouring market. So, being acutely aware of valuation trends across borders, particularly throughout Europe, is really important. If you are seeing potential BEV losses in France, for instance, you may be able to mitigate some of those losses by remarketing in Germany or Spain. Attentive fleet managers are looking to those neighbouring markets to optimise their remarketing revenues and alleviate unplanned losses. New brand boom for fleets? Europe has seen the entrance of new brands over the last few years. Are these newcomers going to see a spike in fleet purchases given their affordability and advanced technology? Or are established brands going to hold firm? We know some of the Chinese brands coming to market are doing so very professionally, with some fantastic products. These products will naturally challenge some of the established, traditional OEMs. There are only so many consumers and businesses across Europe that are going to purchase cars. This means there will be fluidity in which brands these people gravitate towards. One thing that will always remain fundamental in the fleet, finance, and leasing sectors is the importance of both RVs and cost new prices. A strong brand with robust RVs is better positioned to compete across European markets, standing firm against other OEMs. Ultimately, list price and RVs are critical factors that drive competitiveness and long-term performance. One technology we have seen become increasingly prevalent is advanced driver-assistance systems (ADAS). Are fleets demanding this kind of technology, or is it just an added cost? There is an important balance to consider here. As a responsible employer, there is a duty of care owed to company car drivers and vehicle owners. Providing a vehicle equipped with ADAS not only supports that duty of care but also demonstrates a commitment to protecting employees in the best way possible. While there may be additional costs associated with this, the value of safeguarding employees while they are on the road representing the business is significantly greater. Health and safety considerations within fleet management are central to this approach. Enhancing vehicle safety features remains a key component of responsible fleet operations. How can fleets prepare for 2026? What do you think are the biggest challenges for fleets in 2026, and what are the greatest opportunities for them? In terms of the biggest challenge, we are seeing a huge uptick in BEV fleet adoption. We have already discussed the value volatility of used BEVs. We have also got new battery technologies and competitive entrants coming to market. There will always be some downward pressure on older batteries being surpassed by newer technology. We will also see positive adoption of challenger entrants. The RVs of all-electric models will continue to come under pressure in the foreseeable future. With that in mind, this will certainly be one of the biggest challenges for fleet companies in 2026 and potentially for years to come. The biggest opportunity in these scenarios is being as agile as possible; Looking at new strategies for remarketing these BEVs and ensuring that any fluidity in those residual values is managed in the best way possible. I think fleet companies that are agile, reactive and keep a very close eye on what is going on in the market will fare best.

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