Starting in January 2026, Mexico officially raised tariffs on Light Vehicles (LVs) from 20% to 50%, applying only to countries that do not have a Free Trade Agreement (FTA) in place. While the change in rate affects many markets, we expect the most significant impact to be felt in China and India. These measures have

On January 29, the governments of Canada and South Korea announced that the Honourable Mélanie Joly, Minister of Industry, and her counterpart, Jung-Kwan Kim, Minister of Trade, Industry and Resources of the Republic of Korea, have signed a memorandum of understanding (MOU) with the goal of bringing Korean auto manuf

On January 28, the Portfolio Committee on Trade, Industry and Competition of South Africa called for deeper localisation, job creation, and meaningful transformation in South Africa’s automotive industry, as it assessed progress on the South African Automotive Industry Master Plan 2035.
The Department of Trade, Indus

On January 27, multiple sources reported that the Deputy Minister of Trade, Industry and Competition, South Africa, stated that the government is considering imposing new tariffs on imported cars from India and China.
South Africa is considering imposing tariffs of up to 50%. The government would use duties to protec

On January 28, the Ministry of Trade and Industry, Egypt, announced that the Bulgarian company Sincars is planning to manufacture electric cars in partnership with one of the industrial companies in Egypt. The ministry reviewed Sincars’ plan to manufacture electric vehicles, including passenger cars, refrigerated tra

On January 27, following the signing of the India-European Union Free Trade Agreement, automotive industry leaders outlined implications for the sector. The FTA is expected to enable greater tariff certainty and a more predictable trade framework.
Skoda Auto Volkswagen India said the agreement will allow the introduc

On January 27, the president of the German Association of the Automotive Industry (VDA) welcomed the successful conclusion of negotiations on a trade agreement between the EU and India.
It will support Germany as an export country and companies in the German car industry by gradually reducing tariffs on vehicles to 1

On January 27, 2026, Union Minister for Heavy Industries and Steel inaugurated the 19th edition of SIAT 2026, a three-day Symposium on International Automotive Technology, in Pune at PIECC. The event is organized by the Automotive Research Association of India (ARAI) in association with SAE International and SAEINDIA

On January 27, the Prime Minister of Egypt said in a social media post that he has held a meeting to discuss opportunities for localizing the automotive industry and increasing the competitiveness of free zones. He stated that the Government is attracting major global manufacturers, within the framework of the state’

On January 26, President Trump announced on Truth Social that he would increase tariffs on South Korean imports to 25% from 15%, accusing the country’s legislature of failing to enact a trade deal the two countries struck in 2025. The abrupt reversal affects automotive, lumber, pharmaceutical, and all other imports c

On January 22, Transport Scotland announced an investment of GBP 85 million for the rollout of critical electric vehicle charging infrastructure and the switch to zero-emission vehicles. The investment is part of more than GBP 4 billion to be spent in the coming financial year on transport.
GBP 316 million has been a

On January 27, the European Automobile Manufacturers’ Association (ACEA) welcomed the conclusion of negotiations for a free trade agreement (FTA) between the European Union and India. ACEA stated that it will greatly help European automobile exports enter a market of 4 million passenger cars that, until now, has been

On January 23, 2026, Union Minister for Road Transport & Highways informed the Consultative Committee that 30 GHz radio frequency has been allocated for vehicle-to-vehicle communication systems to reduce road accidents and fatalities. The Committee addressed road safety through four pillars: Engineering, Enforcement,

On January 27, 2026, the Prime Minister of India and the European Commission President announced the conclusion of the India-EU Free Trade Agreement, which includes a carefully calibrated automotive liberalisation package. Car tariffs will gradually reduce from 110% to as low as 10%, while tariffs on car parts will b

On January 21, 2026, China’s Ministry of Industry and Information Technology (MIIT) issued the revised “Market Access Review Requirements for Road Motor Vehicle Manufacturers” (the Manufacturer Requirements) and “Market Access Review Requirements for Road Motor Vehicle Products” (the Product Requirements), both effec

On January 24 in a post on Truth Social, U.S. President Donald Trump threatened to impose 100% tariffs on Canada, warning it not to make a trade deal with China or face the increased import levies.
"If Governor Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the Un

Volkswagen AG’s plans for a possible Audi manufacturing plant in the U.S. are not progressing, according to VW CEO Oliver Blume on January 25, amid the weight of President Trump’s tariffs, which he says have cost EUR 2.1 billion (USD 2.5 billion) in the first nine months of 2025, as well as talks on local incentives

Announced on January 23, 2026, Thailand’s Deputy Prime Minister and Minister of Finance, Mr. Ekniti, led the Thailand Team at the World Economic Forum (WEF) Annual Meeting 2026 in Davos (January 19–22) to position Thailand as an emerging regional economic hub and attract advanced technology investment.
The Board of I

Canada and China signed an agreement January 16 that will see Canada allow 49,000 Chinese EVs into the country at a 6.1% tariff rate, down from 100% set in 2024, with Canadian Prime Minister Mark Carney saying the deal is an “opportunity” for Ontario and autoworkers.
In a January 18 press conference in Doha, Qatar, C