Stellantis, Dongfeng Plan European JV; Yushi Tech Lists on HKEX; Auto Sector and Supply Chain Updates

On May 20, Stellantis Group and Dongfeng Motor Group Co., Ltd. signed a non-binding Memorandum of Understanding (MoU) to establish a joint venture in Europe, which will handle sales, distribution, manufacturing, procurement, and engineering R&D of Dongfeng’s new energy vehicles in designated European markets. On the same day, Fangchengbao Auto announced that its cumulative brand sales have reached 400,000 units, including 150,000 units of the Titanium 7 model. Previously, on January 15, 2026, the brand’s total vehicle sales stood at 300,000 units, with Titanium 7 accounting for 100,000 units. SAIC Motor Corporation Limited and SAIC-GM-Wuling jointly donated RMB 2 million to the Liunan District earthquake-stricken area in Liuzhou City, Guangxi Zhuang Autonomous Region, to support emergency relief, essential supplies, temporary shelter, and post-disaster reconstruction. Huawei Rotating Chairman Xu Zhijun and CEO of Yinwang (Harmony Intelligent Mobility) Jin Yuzhi visited Dongfeng Motor Group, reaching consensus on topics including product-technology synergy and AI-enabled R&D and manufacturing. Dongfeng’s M-Hero and Yijing brands have launched Strategic Cooperation 2.0 with Yinwang and held a ceremony to award the “Huawei Qiankun Full-Stack Native Co-Creation Gold Team” designation. Hesai Group announced it has secured定点 orders for over one million LiDAR units from a leading European OEM, covering more than ten models of its China-based joint venture brands. To date, Hesai has obtained production定点 awards from 40 automotive brands across more than 160 vehicle models, serving all top ten Chinese automakers by sales volume and securing定点 for all 2026 models from the world’s two largest ADAS customers. Qianxun Intelligence and Digbot Robotics have entered into a strategic partnership, completing deep integration between Qianxun’s Spirit v1.5 embodied intelligence model and Digbot’s Sunrise S600 platform, accelerating the deployment of integrated hardware-software solutions for embodied AI. Bosch and Mercedes-Benz have signed a long-term agreement under which Bosch will supply drive motors in high volumes for Mercedes-Benz’s next-generation battery electric vehicles, with cooperation extending into the 2030s. ZF Friedrichshafen announced it will retain its in-house e-drive motor development and production business but will cut several hundred jobs at its Schweinfurt and Altdorf (Bavaria) plants in Germany. Xiaomi Auto’s third model, Kunlun, has added CALB (China Aviation Lithium Battery) as a battery supplier, while Sunwoda remains the primary supplier (accounting for 60% of supply). CALB stated it is effectively the number-one supplier. From January to April 2026, China’s top ten SUV manufacturers sold a combined 3.137 million units, representing 65.1% of total SUV sales. Among them, BYD and Changan Automobile reported year-on-year declines, while the rest recorded growth. The International Energy Agency (IEA) released its “Global EV Outlook 2026,” forecasting global EV sales to reach 23 million units in 2026—nearly 30% of total new car sales. In 2025, global EV sales grew by 20% year-over-year, surpassing 20 million units for the first time and accounting for 25% of the market. UISEE Technology listed on the Hong Kong Stock Exchange on May 20, opening at HK$56 per share with a market capitalization of approximately HK$9.09 billion. The company focuses on L4 autonomous driving solutions for commercial vehicles in closed environments such as airports and industrial parks. South Korea’s total auto exports in April amounted to USD 6.17 billion, down 5.5% year-over-year. Exports to the Middle East, the EU, and Asia declined by 38.7%, 13.1%, and 31.7%, respectively. Since May, more than ten leading Chinese NEV makers—including BYD and Changan Qiyuan—have raised prices on select models by RMB 2,000 to RMB 10,000, primarily due to rising raw material costs and industry-wide margin pressures. The market is shifting from a “volume-over-price” strategy toward value-driven competition centered on technology and services. Hangzhou Kolin plans to acquire a 41.57% stake in Kepler Robotics using self-raised funds of up to RMB 300 million. It previously acquired a 9.43% stake for RMB 100 million on December 31, 2025.