Hainan Sets 2030 Ban on Gasoline Cars, Spurring Global Automakers and Suppliers to Accelerate EV Shift

The People's Government of Hainan Province recently released the "Hainan National Pilot Zone for Ecological Civilization Plan (2026–2030)," explicitly stating that the province will completely ban the sale of fossil fuel-powered vehicles by 2030. By then, the share of new energy vehicles (NEVs) in the province’s total vehicle fleet is expected to rise from 23.75% in 2025 to 45%. Since first announcing its 2030 “ban on combustion vehicles” target in 2019, Hainan has continuously advanced its clean energy island initiative. During the 14th Five-Year Plan period (2021–2025), new energy sources became the largest contributor to the province’s power supply, and Hainan ranked first nationwide among provincial-level regions in NEV market penetration and second in NEV ownership share. According to the plan, by 2030, non-fossil energy will account for 35% of total energy consumption in Hainan. In public services and commercial vehicle sectors (excluding special-purpose vehicles), all newly added or replaced vehicles will be powered by clean energy, while private vehicle purchases will be 100% NEVs. The vehicle-to-charging-point ratio will be maintained below 2.5:1. Additionally, Hainan will promote pilot applications of fuel cell vehicles in heavy-duty trucks, cold-chain logistics, and public buses, explore the development of zero-carbon freight corridors, and support Yangpu in becoming an international green and low-carbon shipping hub. On July 14, Brazil’s National Council for Energy Policy (CNPE) temporarily approved raising the mandatory ethanol blending ratio in gasoline from 30% to 32%, effective for 180 days with a possible extension of equal duration. This measure is expected to reduce annual gasoline imports by approximately 900 million liters, mitigating supply uncertainties caused by international oil price volatility. The Brazilian Sugarcane Industry Association (UNICA) estimates the new standard will generate an additional annual ethanol demand of about 1 billion liters and serve as a stepping stone toward adopting an E35 standard in the future. However, fuel retailers and importers have expressed concerns that higher ethanol blends could negatively impact vehicle performance and increase maintenance costs. GAC Group released its earnings forecast for the first half of 2026, projecting a net loss attributable to shareholders of RMB 4.06 billion to RMB 4.57 billion, and a loss from continuing operations (after non-recurring items) of RMB 4.8 billion to RMB 5.6 billion—wider than the same period in 2025. Despite a slight increase in sales volume, modest improvement in gross margin, and significant growth in overseas sales, intensified domestic market competition, higher marketing expenditures for its自主品牌 (self-owned brands), declining profits from joint ventures, rising raw material costs, and foreign exchange losses collectively pressured profitability. On the same day, Great Wall Motor also issued its earnings guidance, forecasting net profit attributable to shareholders for the first half of 2026 at RMB 2.35 billion to RMB 2.6 billion, representing a year-on-year decline of 58.97% to 62.92%. The company attributed the drop primarily to delayed recognition of overseas tax subsidies and foreign exchange fluctuations. Total sales for the first half reached 583,900 units, up 2.48% year-over-year, including 291,400 units sold overseas and 144,600 NEVs. Performance varied across brands: Ora sales surged 229.15% year-on-year, while WEY and Tank brands declined by 29.48% and 27.16%, respectively. Mercedes-Benz announced a €1 billion investment to expand its Kecskemét plant in Hungary, increasing annual production capacity to 350,000 vehicles and creating 3,000 new jobs. Following the expansion, the facility will become Mercedes-Benz’s largest production site in Europe and its second-largest globally. It will produce the all-new electric C-Class, GLC, and compact G-Class models and enable flexible, integrated manufacturing alongside German plants. Bosch has begun trial production of silicon carbide (SiC) chip samples at its first U.S. semiconductor fab in Roseville, California. The project represents a total investment of $2 billion, including a $225 million grant from the U.S. Department of Commerce under the CHIPS and Science Act. Commercial mass production is scheduled to commence later this year, with chips primarily serving power management systems in new energy vehicles and data center power supplies. Bosch plans to invest up to $7.5 billion in its U.S. operations by 2031.