The State Council issued the 15th Five-Year Plan for Expanding Consumption. The plan proposes to promote consumption of bulk durable goods, better meet housing consumption demand, optimize the supply of government-subsidized housing, increase the supply of improved housing based on city-specific policies, standardize the development of the housing rental market, implement a housing quality improvement project, build safe, comfortable, green, and smart "good houses," and steadily advance the renovation of urban villages...

In early July 2026, CAAM and the China Passenger Car Association (CPCA) branch successively released data on the auto market for June and H1 2026. CAAM stated that in H1, China’s auto industry operated steadily overall, with cumulative declines in production and sales narrowing month by month. Market flows showed three main divergences: first, domestic demand was under significant pressure, with double-digit declines in sales; second, exports exceeded expectations, providing stable support...... SMM has compiled the relevant data on the auto market for June and H1 2026 for readers' reference. In the automotive sector, CAAM: June Auto Production and Sales Rise MoM; H1 Declines Narrow Further Compared with First Five Months In June, auto production and sales reached 2.76 million and 2.81 million units, up 5.5% and 6.9% MoM respectively, but down 1.2% and 3.2% YoY. January-June, auto production and sales totaled 14.993 million and 15.017 million units, down 4.0% and 4.1% YoY respectively, with the declines narrowing further compared with the first five months. CAAM: NEV Production and Sales in June See Steady Growth; NEV Sales Account for 49.6% of Total New Vehicle Sales in H1 In June, NEV production and sales reached 1.598 million and 1.643 million units, up 26% and 23.6% YoY respectively. NEV sales accounted for 58.5% of total new vehicle sales. January-June, NEV production and sales totaled 7.438 million and 7.446 million units, up 6.7% and 7.3% YoY, and NEV sales accounted for 49.6% of total new vehicle sales. CAAM: June Auto Exports Exceed 1 Million Units for the First Time in History; NEV Exports Up 1.6x YoY In June, auto exports reached 1.037 million units, up 11.6% MoM, soaring 75.1% YoY, marking the first time monthly exports surpassed 1 million units. January-June, auto exports totaled 5.096 million units, up 65.3% YoY. In June, NEV exports were 523,000 units, up 17.2% MoM, and up 1.6x YoY; exports of conventional fuel vehicles were 514,000 units, up 6.4% MoM and 32.7% YoY. January-June, NEV exports reached 2.355 million units, up 1.2x YoY; conventional fuel vehicle exports totaled 2.741 million units, up 35.5% YoY. Regarding the auto market in H1, according to CAAM analysis, China's auto industry operated steadily overall, with cumulative declines in production and sales narrowing month by month. Market flows exhibited three key divergences: First, domestic demand was clearly under pressure, with sales dropping by a double-digit percentage; exports grew beyond expectations, providing a stable support. Second, the passenger vehicle market underperformed, edging down slightly; the commercial vehicle market continued its improving trend, with sales maintaining growth. Third, the shift from old to new economic drivers continued, with the traditional internal combustion engine vehicle market shrinking further while NEV maintained steady growth. Meanwhile, the China Passenger Car Association also released June passenger car market data. June retail sales of passenger cars in China reached 1.602 million units, down 23.2% YoY and up 6.1% MoM; year-to-date cumulative retail sales totaled 8.701 million units, down 20.2% YoY. In June 2026, China's domestic passenger car market showed a recovery trend characterized by "overall pressure, MoM strengthening, and extreme structural divergence." For passenger NEV, June retail sales reached 1.007 million units, down 9.4% YoY and up 6.0% MoM; January–June passenger NEV retail sales totaled 4.704 million units, down 14.0% YoY. June retail sales of conventional internal combustion engine passenger vehicles were 600,000 units, down 39% YoY and up 6.3% MoM; among these, ordinary hybrid models fell only 7% YoY while rising 24% MoM, a standout performance trend. In terms of NEV exports, June passenger NEV exports stood at 499,000 units, up 152.7% YoY and up 17.6% MoM , accounting for 56.9% of total passenger vehicle exports, an increase of 15.9 percentage points compared to the same period last year. Among these, pure EVs made up 58.7% of NEV exports (vs. 63.1% a year earlier), and A00+A0-class pure EVs—the core focus—accounted for 53.8% of pure EV exports (vs. 51.2% a year earlier). Riding on the growing scale advantage of China's NEVs and market expansion demand, an increasing number of Chinese-manufactured NEV-branded products are going global, with their recognition outside China steadily rising. Narrow plug-in hybrids represented 37.7% of NEV exports (vs. 33.4% a year earlier), while extended-range models comprised 3.6% of NEV exports (vs. 3.5% a year earlier). Despite some recent external disruptions, domestic narrow plug-in hybrid exports to developing countries are surging with bright prospects. The China Passenger Car Association noted that the core characteristics of the June auto market were "collapsing domestic sales of internal combustion engine vehicles, NEV firmly dominating, and exports surging strongly." The core pressure behind the decline in China's domestic auto market was internal combustion engine vehicles, with retail sales dropping 39% under the impact of high oil prices. In June, conventional internal combustion engine vehicles accounted for a 37.2% share, and their YoY decrease represented 78% of the total decline in passenger vehicles. Among these, ordinary hybrid models saw retail sales fall 7%, pure internal combustion engine vehicles fell 42%, and the internal combustion engine vehicle structure experienced further divergence. High oil prices, consumption transformation, and other factors accelerated the "oil-to-electric replacement" process. This month, the new energy retail penetration rate held at a historical high of 62.8%. The electrification transformation of joint-venture brands accelerated. In June, sales of new energy joint-venture car models grew 45% YoY, while internal combustion engine vehicle sales fell 39% YoY. Exports continued to be the core growth driver for the industry. In June, new energy exports accounted for 57% of total exports, a new high, while internal combustion engine vehicle export growth of 33% was also strong, resulting in superb dual growth of both oil and electric vehicles in China's going-global efforts. Currently, the domestic auto market is characterized by intense competition for existing stock, and divergence within the industry continues to intensify. The new energy market has bid farewell to all-round growth, showing a polarized trend of "explosive growth in high-end EVs and pressure on low-end economy car models," with markets in counties and townships and entry-level models declining too sharply. At the same time, the "new car effect" has become short-lived, significantly weakening its ability to boost the market. Pressure on the channel side remains prominent, the industry's pace of passive destocking has accelerated, and dealers are generally suffering losses with escalating operational risks. Overall, the MoM strengthening of the auto market in June was merely a structural recovery; electrification iteration and overseas exports have become the core pillars of the industry's long-term growth. Characteristics of the passenger car market in June 2026: 1. Total volume was under pressure with major structural divergence; "cold internal combustion engines, hot pure electric" became the biggest focus. The core reason for the domestic retail decline was the "collapse of internal combustion engines," which drove the new energy retail penetration rate to quickly exceed 60% and reach 62.8%, with the pace of electrification replacement surpassing expectations. 2. Mini EVs were under pressure, A-segment cars shrank, and entry-level consumption urgently needed support, with expectations for the introduction of economy EV standards. 3. Exports showed explosive growth, with new energy accounting for 57% of exports (a new high), and both new energy and self-owned brand dual-driven going global became the core growth engine. 4. Passive destocking characteristics were evident, channel inventory declined relatively rapidly, listed dealers were all in the red, and dealer survival pressure continued to intensify. 5. The breakthrough of self-owned brands in the high-end segment stood out, with passenger car retail penetration rates in consumer markets such as 200,000-300,000, 300,000-400,000, and above 400,000 all exceeding 50%. June Delivery Data for New Force Automakers Released: Leap Motor Charges Ahead – How Are Automakers’ Annual Targets Progressing? In early July, several domestic new force automakers successively announced their June delivery data, with many delivering impressive results: In June, Leap Motor continued its unstoppable momentum, delivering 93,376 units globally, up 95% YoY. Its H1 cumulative deliveries reached 356,487 units. According to previous media reports, Leap Motor's full-year 2026 sales target is 1 million units, and its current target completion rate is around 35.65%. This year, Leap Motor's new car deliveries have been climbing steadily, and its outstanding performance has kept it firmly at the forefront among new force automakers. In July, Leap Motor continued its momentum by launching a car purchase event, "Summer Deals: Save This Summer." During the event, customers who place orders can enjoy limited-time comprehensive benefits worth up to 61,279 yuan, bundled with four lifetime free warranty services, premium services, and more, offering a sincere benefits package to bring users a more relaxed car ownership experience. As of June 18, 2026, Leap Motor's cumulative global deliveries surpassed 1.5 million units, marking an important milestone in the brand's development. In June, NIO delivered 40,597 new vehicles, a single-month high for 2026, up 62.9% YoY. Among them, the NIO brand delivered 21,908 new vehicles, up 50.1% YoY; the Le Dao brand delivered 11,743 new vehicles, up 83.5% YoY; and the firefly brand delivered 6,946 new vehicles, up 76.7% YoY. As of now, NIO has cumulatively delivered 1,188,715 new vehicles. In H1 2026, NIO delivered a total of 191,123 new vehicles, reaching a record high, up 67.4% YoY. All three brands achieved record-high deliveries in H1. According to public information, NIO previously stated that it hopes to maintain an annual sales growth of 40%–50%. Based on this, its 2026 sales target is 456,000 to 489,000 vehicles. As of now, its full-year sales completion rate is around 39.08%–41.9%. Meanwhile, as of now, NIO has been profitable for two consecutive quarters, entering the third phase of high-quality development. Its multi-brand strategy is steadily advancing, and synergistic efforts are driving rapid sales growth. In June, XPeng Motors delivered 40,126 new vehicles, up 15.9% YoY; cumulative deliveries in Q2 reached 103,295 units. During the same period, the 10,000th XPeng GX rolled off the production line, global cumulative deliveries of the XPeng X9 surpassed 60,000 units, and the first SUV in the MONA series, the XPeng MONA L03, will make its China debut and start pre-sales on July 2, further enriching XPeng's product lineup and steadily advancing its global expansion. In H1 2026, XPeng Motors cumulatively delivered 165,977 vehicles, achieving a sales target completion rate of approximately 27.66%–30.18% against its 2026 goal of 550,000 to 600,000 units. Notably, global cumulative deliveries of the XPeng X9 have now exceeded 60,000 units, setting a new record for the fastest delivery pace among new energy MPVs. In June, Li Auto delivered 30,895 new vehicles. In H1 2026, Li Auto delivered a total of 193,472 vehicles. As of June 30, 2026, Li Auto's cumulative deliveries reached 1,733,687 units. In March this year, Li Auto's Chairman Li Xiang set a target of over 20% YoY sales growth for 2026, corresponding to 487,600 units for the full year. Currently, Li Auto's delivery completion rate for H1 stands at around 39.68%. In July, the new-generation Li Auto L6 will officially hit the market. Xiaomi Auto's June deliveries continued to exceed 30,000 units, with its H1 sales at approximately 180,000 units, representing a completion rate of roughly 32.73% against the 550,000-unit sales target it announced in January 2026. BYD, a globally renowned EV enterprise, reported NEV sales of 403,472 units in June, up 5.46% YoY. Its YTD production reached 1.8141 million units, down 15.11% YoY, while cumulative sales stood at 1.8085 million units, down 15.72% YoY. Passenger vehicle production was 396,400 units and sales were 397,300 units. Notably, in June, BYD's markets outside China maintained rapid growth, with passenger vehicle and pickup exports reaching 174,897 units, up 95% YoY. In H1, BYD's cumulative sales reached 1,808,511 units, and its cumulative NEV sales surpassed 16.9 million units. According to publicly available information, its previously set sales target ranged from 5 million to 5.5 million units, against which its current completion rate is roughly between 32.88% and 36.17%. Judging from the June report cards of BYD and these NEV startups, BYD and Leap Motor delivered outstanding performances. BYD's sales once again exceeded 400,000 units, while Leap Motor continued to refresh its delivery records, with global deliveries surpassing 90,000 units, securing its top spot in deliveries among NEV startups. NIO and XPeng Motors both surpassed the 40,000-unit delivery mark in June, each delivering commendable performances. However, the above-mentioned automakers still face a certain gap between their current sales achievements and their annual sales targets, with Li Auto posting the highest completion rate of 39.68%. Nevertheless, hopes remain for the September-October peak season in H2, and with a flurry of favorable auto policies emerging recently, the subsequent performance of automakers is still worth looking forward to. Policy side, on July 2, the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology issued an announcement on adjusting the preferential vehicle and vessel tax policies for energy-saving vehicles and NEVs. It was mentioned that starting January 1, 2027, the policy of halving vehicle and vessel tax for energy-saving vehicles will be abolished, as will the policy of exempting pure electric commercial vehicles, plug-in hybrid electric vehicles (including range-extended), and fuel cell commercial vehicles from vehicle and vessel tax. For the above-mentioned types of vehicles newly acquired by taxpayers or already acquired before the implementation of this announcement, vehicle and vessel tax shall be levied in accordance with the Vehicle and Vessel Tax Law of the People's Republic of China, its implementing regulations, and other relevant provisions. Furthermore, on June 29, the China Automotive Power Battery Industry Innovation Alliance and the Zhongguancun Energy Storage Industry Technology Alliance jointly released the "Initiative for Standardizing Supplier Payment Practices for Power and ESS Battery Enterprises," which proposes standardized initiatives across multiple stages including order confirmation and changes, delivery and acceptance, payment and settlement, and contract terms. After the initiative was released, many power battery and ESS battery companies along China’s industry chain, including CATL, EVE, and Gotion High-tech, actively responded. An official from the Equipment Industry Division I of the Ministry of Industry and Information Technology commented that 11 key battery enterprises actively responded to the initiative and proposed relevant implementation measures, demonstrating their responsibility and commitment. The Ministry of Industry and Information Technology will give full play to the inter-departmental coordination mechanism, promptly resolve issues in implementation, and adopt multiple measures to promote the building of a collaborative and win-win development ecosystem for the entire industry chain of power and ESS batteries, fostering the healthy and sustainable development of the industry. Looking ahead to H2, CAAM expects that the program of large-scale equipment upgrades and consumer goods trade-ins will continue to be implemented in an orderly manner, consumption in the automotive aftermarket is expected to usher in new growth opportunities, the supply of new products from enterprises will continue to be enriched, market prices will remain relatively stable, and the overall economic performance of the industry will improve further. At the same time, it should be noted that the external situation is complex and changing, uncertainties continue to increase, the problem of insufficient domestic demand remains prominent, and the industry still faces significant pressure. It is necessary to stabilize policy expectations, strengthen guidance and supervision, closely monitor changes in the international situation, effectively respond to risks and challenges, and steadily explore international markets.

The development of NEVs is driving lightweight materials toward higher performance and greater efficiency. Now, the rapid growth of the humanoid robot industry is also prompting automotive material enterprises to focus on new application directions. What new requirements do robots have for lightweight materials? Which mature automotive material systems can be directly applied to robots? What new application opportunities will emerge for materials such as aluminum alloys, magnesium alloys, and composites? How should automotive supply chain enterprises plan ahead to enter the robot industry chain? These questions are becoming the focus of attention for an increasing number of material enterprises and R&D teams. From September 10 to 11, ASCC2026·SMM (8th) Automotive Supply Chain Conference will invite IRON humanoid robot material expert Huang Jiaqi to deliver a keynote presentation titled “Automotive & Humanoid Robot Lightweighting Challenges and Material Selection Analysis.” Dr. Huang Jiaqi graduated from the School of Materials Science and Engineering at Harbin Institute of Technology and previously served as Director of the Materials Department at JAC Group and XPeng Motors, with long-term research on automotive materials and lightweighting technologies and extensive experience in developing and applying NEV materials. He currently serves as Distinguished Expert at the National Industrial Energy Conservation and Green Development Evaluation Center, Expert for National High-tech Enterprise (New Materials) Evaluation, Expert for Unified Local Standards in the Yangtze River Delta Region of Shanghai Municipal Administration for Market Regulation (Energy Conservation and Environmental Protection), Evaluation Expert for Manufacturing Strong Province Projects of Guangdong Provincial Department of Science and Technology and Anhui Provincial Department of Industry and Information Technology (NEV), and also Secretary General of the Anhui Composite Materials Industry Association. In this presentation, he will combine automotive industry lightweighting practices and revolve around the similarities and differences in material applications between automobiles and humanoid robots, lightweight material selection strategies, and future development directions to exchange ideas, offering valuable industry insights for material enterprises, processing enterprises, and vehicle R&D teams. For conference attendance and inquiries, contact Manager Jiang at 13258390905 (same number on WeChat).

On June 17, 2026, the 2026 SMM (3rd) ASEAN Automotive Supply Chain Conference , organized by Shanghai Metals Market (SMM), successfully wrapped up at the Hyatt Regency Bangkok Suvarnabhumi Airport in Bangkok, Thailand! This conference serves as an annual gathering of Southeast Asia's auto industry, bringing together 400+ delegates, 40+ speakers, 15+ partners and 15+ exhibitors from 15+ countries. Conference Background The Southeast Asian EV industry is at a strategic crossroads. Thailand's "30/30" policy is driving adoption, with EV penetration projected to near 15% by 2025. Indonesia is building a full battery chain using its nickel resources, while Vietnam's market potential grows. Amidst supply chain restructuring and technological competition, strategic action is key. The 3rd SMM Asean Automotive Supply Chain Summit 2026 is designed to empower businesses by focusing on: Unlocking NEV Potential: Analyzing ASEAN's role as a production/export hub and examining OEM technology roadmaps. Bridging the Supply Chain: Leveraging SMM's platform to integrate resources and facilitate deals. Establishing a Price Benchmark: Promoting the use of SMM Southeast Asia metals price assessments in procurement. We believe in turning consensus into action. Join us in Bangkok in 2026 to transform strategic blueprints into tangible advantages. 》Click to Watch the Conference Live Video 》Click to View the Conference Photo Live Stream June 16 Main Forum Opening Address Speaker: Adam Fan, Chairman of SMM Opening Keynote: Thailand EV Outlook 2026 Guest Speaker: Dr. Yossapong Laoonual, Head of Mobility & Vehicle Technology Research Center (MOVE), King Mongkut’s University of Technology Thonburi (KMUTT) Dr. Yossapong Laoonual noted that the ownership of battery electric vehicle (BEV) models is expected to surpass that of hybrid models in the medium and long term. Thailand’s BEV penetration rate will also rise steadily, supported by well-developed charging infrastructure. Data shows that the number of DC charging piles in Thailand has continued to grow, with installations already exceeding the government’s planned phased targets. The country’s 2030 charging pile target is 12,000 units, and multiple supporting regulations for motor vehicles have already been implemented locally. Local planning stipulates that each pile should serve 10-15 BEVs. Compared with markets outside China, where each pile in Europe serves fewer than 15 BEVs on average and in China fewer than 10, Thailand currently faces an imbalanced vehicle-to-pile ratio and still requires the large-scale addition of new charging piles. Thailand’s charging piles are primarily located at gas stations, with shopping malls and office buildings as secondary deployment sites. Local gas stations feature diverse commercial formats, offering excellent conditions for setting up charging stations. However, range anxiety remains widespread among consumers, and charging facilities along highways need to be further improved to alleviate concerns about recharging on the road. Opening Keynote: Southeast Asia’s New Automotive Ambition:Can Industry Players Successfully Navigate Transformation Amid Challenges? Guest Speaker: Krzysztof Tokarz, Chairman of the Automotive Working Group at TEBA, Founder of Auteneo He stated that there were four core strategic challenges in the electrification transformation of Southeast Asian automakers: First, a shortage of professional talent, with undersupply of high-quality talent in the EV and software fields, fierce competition for industry talent, and enterprises needing to plan for talent cultivation and retention; Second, cross-cultural coordination difficulties: significant differences in working models among Chinese, Japanese, Korean, European, American, and local enterprises, which easily led to issues such as lack of trust and poor cooperation; Third, complex and changing regional regulations: fragmented regulatory systems across Southeast Asian countries, with a fast pace of policy updates over the past year or more, placing high demands on enterprises' policy adaptation capabilities; Fourth, profitability pressure, as electrification reshaped the pricing system, with many automakers experiencing simultaneous contraction in revenue and profit margins, necessitating the exploration of long-term profitable models. Overall, he believed that while he currently maintained a cautiously optimistic attitude towards the development of industry technology and products, the aforementioned challenges still urgently needed to be addressed. Panel Discussion: Leadership Dialogue: East Asian Titans' "Southeast Asian Chessboard" Moderator: David Huang, The Head of Strategy, Marketing and Business Development, Forvia China Panelists: Dr. Yossapong Laoonual, Honorary Chairman and Advisors, Electric Vehicle Association of Thailand (EVAT) Suphot Sukphisarn, Honorary Chairman, Auto Parts Industry Club (APIC), The Federation of Thai Industries (FTI), Deputy Secretary General, Thai Auto-Parts Manufacturers Association (TAPMA） Krzysztof Tokarz, Chairman of the Automotive Working Group at TEBA, Founder of Auteneo Dr. Viroj Patcharawatanakul, Chief Marketing Officer (CMO), AAPICO Hitech PCL. The panelists noted that ASEAN countries have distinct industrial advantages: Malaysia has ample electronic factory resources, Indonesia possesses mineral resources needed for battery production, and Vietnam offers comprehensive labor incentive policies. To fully leverage each country's locational appeal, overall integrated planning is required. The ASEAN NEV market is expanding rapidly overall, with the regional EV penetration rate more than doubling. Thailand and Vietnam have seen impressive growth in XEV production and sales. Local vehicle production capacity remains stable, and Chinese new energy brands such as BYD, MG, and Great Wall have established a presence in Thailand, driving up demand for new energy parts supply. Thailand has a well-established multi-tier parts supply system: 27 vehicle manufacturers, 500 Tier 1 suppliers, and 1,800 Tier 2 and Tier 3 parts producers. Traditional mechanical processing industries like stamping, injection molding, rubber processing, machining, casting and forging, and assembly have a solid foundation, with huge annual parts capacity, providing the manufacturing capability to support new energy parts production. Keynote Speech: Navigating Automotive Disruption in Southeast Asia Guest Speaker: Timothy Wong, Principal, Roland Berger Roland Berger noted that AI-driven automation continues to advance and autonomous driving is developing steadily. It is expected that by 2040, autonomous driving will still struggle to become mainstream. However, AI technology has already disrupted the automotive industry, becoming a core driving force for enterprises to build differentiated advantages, enhance competitiveness, and innovate business models. The automotive industry is currently undergoing comprehensive disruptive changes, mainly in five dimensions: First, the automotive supply chain value chain is undergoing fundamental transformation, with vehicles and core parts upgrading toward electrification and electronics. Industry enterprises urgently need to adjust their product structures and proactively position themselves in emerging tracks; passively responding to market changes will entail significant risks. Second, the nature of automotive products is being reshaped by technology, shifting from traditional mechanical vehicles to software-defined vehicles. Sole mechanical manufacturing capabilities can no longer meet development needs; enterprises must build diversified cooperation ecosystems involving semiconductors, software, and sensors to cultivate new industrial capabilities. Third, the consumer market is undergoing significant iteration, with consumer car purchase preferences gradually tilting toward emerging brands, and industry competition continuing to intensify. Fourth, the pace of market iteration has greatly accelerated. Compared with the model update pace of once every few years by traditional automakers, Chinese brands iterate at a much faster pace, forcing the supply chain toward agile transformation and adaptation to rapidly changing vehicle specifications. Fifth, the aftersales distribution model is being disrupted, with traditional parts revenue being impacted by the growth of EVs. New direct-to-consumer models are emerging, requiring enterprises to restructure their distribution networks and expand aftersales services related to power batteries and electrification. Overall, all industry participants must proactively face transformation risks, actively transform and strategically restructure supply chains, vigorously explore new clients and deploy new businesses, abandon passive thinking that clings to existing models, and proactively plan future business development directions, so as to continuously maintain market competitiveness. Keynote Speech: Moving Beyond Negotiation: Fostering a New Framework for Southeast Asian Supply Chain Collaboration Based on the SMM Price Index Guest Speaker: Sing Yao, Director of Steel Business Unit, SMM Information & Technology Co., Ltd. She noted that Southeast Asia as a whole exhibits low per capita automobile ownership, limited NEV penetration, and a large young population, which holds enormous incremental market potential. This vast blue ocean is attracting leading Chinese NEV manufacturers to accelerate their footprint in the region. At the same time, however, Southeast Asian auto parts are highly dependent on imports, and the industry chain has long faced two major pain points: procurement difficulties and disorderly pricing. The launch of the SMM Southeast Asia Price Index may open up a new path for collaborative development of the local automotive supply chain. Low Per Capita Automobile Ownership, Limited NEV Penetration, and Large Young Population Create Vast Market Opportunities for Automakers According to SMM, in recent years, Southeast Asia’s automotive industry chain has shown remarkable resilience, with regional automobile production growing by 24.1% from 2020 to 2022. Although 2024 saw a cyclical decline for the first time due to global economic sluggishness, the decline in production and sales in Thailand and the broader Southeast Asian market has narrowed in 2025, underscoring the self-repair capability of the regional supply chain. As the region’s core hub, Thailand continues to dominate Southeast Asia’s automotive industry landscape with a capacity share of over 40%. In the short term, Thailand will maintain its position as a regional production center and export base, but its long-term competitive advantages are facing structural challenges: the sustained contraction of local capacity and the upgrading of neighboring countries’ industry chains are compelling it to accelerate technological transformation and supply chain restructuring. Driven by the immense allure of this industry “blue ocean,” leading Chinese NEV manufacturers are accelerating their expansion into the Southeast Asian automotive market. Keynote Speech:Baowu JFE Southeast Asia Strategy Sharing Guest Speaker: Liang Chen, Vice General Manager, Baowu Jiefuyi Special Steel Co., Ltd. He that overall steel production in Southeast Asia is declining, but the penetration rate of new energy electric vehicles (EVs) is surging: Thailand’s EV-related demand is up 80% YoY, while Indonesia’s demand has experienced a multiple-fold rise, with subsequent growth potential continuing to be released. Local NEV manufacturers previously purchased Japanese steel, but are gradually switching suppliers now, driven by industry competition and cost pressure. This also represents a core opportunity for the company to promote its supporting supply services. Leadership Panel: The Steel vs. Aluminum Debate and Cost Challenges Moderator: Michelle Leung, Head of Asia Metals and Mining, sustainability, Bloomberg LP Panelists: Thanakorn Thangwanichkapong, Director of Asia Operations, Maxion Wheels Martin Dilly, Southeast Asia Area Sales Director, Bureau Veritas The panelists noted that multiple disruptions, including the situation in the Strait of Hormuz and national tariff adjustments, have moved beyond short-term impact and are driving the restructuring of the entire steel and aluminum industry chain, with the structural transformation of the aluminum industry being particularly pronounced. Global supply chain vulnerability continues to intensify, and upward cost pressure on the industry has increased. Tariff barriers are reshaping the global trade landscape, and market competition is becoming increasingly fierce. The implementation of industrial localization has accelerated, but the pace of progress in Southeast Asia has seen a slowdown. Overall, only enterprises that possess both flexible logistics and procurement capabilities and a robust compliance management system can gain an advantage amid the industry transformation. Keynote Speech: Analysis of Southeast Asia's Secondary Aluminum Market and Price Trends Guest Speaker: Wong Yan Ling, Senior Aluminum Analyst, SMM Information & Technology Co., Ltd. She noted that Southeast Asia has become one of the fastest-growing secondary aluminum markets globally, and the worldwide competition for scrap resources is continuously reshaping the regional supply landscape. As resource protection policies are progressively implemented across various countries and regional manufacturing demand steadily expands, ASEAN countries are expected to further consolidate their core position in the global secondary aluminum industry chain. Regarding secondary aluminum price trends in H2 2026, SMM analysis suggests that weak seasonal demand in Southeast Asia may suppress the upside room for secondary aluminum prices, while the geopolitical situation in the Middle East remains a key variable affecting market trends. If shipping through the Strait of Hormuz returns to normal, cost pressures from logistics could ease. However, persistently tight scrap supply coupled with potential logistics disruptions may still drive up regional secondary aluminum prices. Specialized Seminar: Co-building a Resilient Automotive Materials Supply Chain for Southeast Asia Moderator: Sing Yao, Director of Steel Business Unit, SMM Information & Technology Co., Ltd. Panelists: Zongyan Fu, Purchasing Manager, Changan Auto Southeast Asia Co., Ltd. Weijiang Xue, Chief Engineer of Product R&D, Jiangsu Yonggang Group Co.,Ltd. Hui Yuan, General Manager, Tianjin Dewy Metal Surface Treatment Co., Ltd. Yi Huang, Deputy General Manager, Guangdong Superband Precision Industry Co.，Ltd. Thanakorn Thangwanichkapong, Director of Asia Operations, Maxion Wheels Hongwei Liu, General Manager, BYH NEW TECHNOLOGY CO., LTD. Saurabh Sharma, Sr General Manager & Executive Director, Hero Motors Thai Ltd. Jun Zou, Overseas Region Head, Marketing, Management Office, Baowu Jiefuyi Special Steel Co., Ltd. HaiBin Jia, Deputy Marketing Director, Beijing Jianlong Heavy Industry Group Co., Ltd. The panelists engaged in in-depth exchanges, drawing from their own business practices, focusing on the core topic of deep development in the Southeast Asian automotive industry. They focused on enterprises' current business layouts, operating status, and development trends in the Southeast Asian automotive market, and deeply analyzed core pain points and challenges such as supply chain adaptation, stable supply, and logistics support in the process of going global. At the same time, they shared detailed experiences regarding common challenges faced by enterprises going global, including localization certification, compliance system adaptation in and outside China, and alignment of policy standards. They also discussed core paths for enterprises to anticipate market changes, precisely allocate industrial resources, and quickly adapt to regional market rules and industry demands, focusing on industry trends. Furthermore, focusing on supply-demand coordinated development, they elaborated on their expectations for future cooperation models, collaboration mechanisms, and partnership needs with Chinese material suppliers. As buyers, they also clarified the types and directions of high-quality Southeast Asian clients they plan to prioritize for connection and cooperation, providing practical ideas and references for precise supply-demand matching and deep cultivation of the Southeast Asian automotive market for Chinese enterprises going global. Day 2: June 17 Keynote Speech: Analysis and Outlook of the Supply Chain in the Southeast Asian New Energy Market Speaker: Jena Wang, New Energy Consulting Project Manager, SMM Information & Technology Co., Ltd. She stated that driven by the rapid growth of the Southeast Asian NEV market, several automakers are accelerating their localization strategies. Battery demand in each country will also increase rapidly, with the region's total battery demand expected to grow by about ten times from 2025 to 2030, reaching approximately 201 GWh. However, it is worth noting that currently, Southeast Asia faces issues with low localization rates, significant structural gaps, and heavy import dependence for cathode materials and motor components. In Southeast Asia, the supply of local cathode materials and key motor components cannot meet demand, and the low localization rate and large capacity gaps have become key bottlenecks restricting the development of the NEV industry chain in the region. Data indicates that China's global production share of key new energy raw materials—such as batteries, cathode materials, lithium chemicals, and rare earth permanent magnets—generally exceeds 70%, with its capacity ranking first worldwide, demonstrating a significant advantage. In addition, she introduced the capacity distribution and industrialisation progress of key materials in the new energy markets of core Southeast Asian countries. Vietnam: Local automaker VinFast is boosting rapid development of the entire vehicle and upstream/downstream supporting industry chain. Thailand: As a core hub for automotive manufacturing and export in Southeast Asia, it boasts a relatively complete supporting system for motor and electric drive-related industries. Malaysia: It possesses a mature automotive industry foundation, but its local supporting capability for the three electric systems is insufficient; local policies focus on supporting vehicle assembly and regional distribution operations. Indonesia: With abundant nickel resources, it holds a pronounced competitive edge in the battery raw material industry. Overall, SMM believes that the capacity for core new energy components in Southeast Asia is relatively small. National policies are promoting localisation and industrial upgrading, leaving significant room for supply chain development. Leadership Panel: Supply Chain Security and Opportunities in Southeast Asia Moderator: Peter Klöpfer, Senior Manager Automotive Business Unit, RUTRONIK Electronics Worldwide Panelists: Akshay Prasad, Principal, Arthur D. Little SEA Alex Zhan, Head, ZF LIFETEC Thailand Asst.Prof.Uthane Supatti Ph.D., Head of the Power Electronics Applications and Energy Management (PEEM) Research Unit, Faculty of Engineering at Sriracha, Kasetsart University, Thailand, Vice President, Electric Vehicle Association of Thailand (EVAT) The panelists discussed about core themes of the Southeast Asian automotive supply chain. First, they addressed the delivery timeline crisis caused by sudden supply shortages, the crisis of lacking transparency in the industry chain, the crisis of industry-wide collaboration barriers, and the crisis of trust failure between upstream and downstream players. They jointly explored systematic resolution strategies and elaborated on their respective countermeasures. Building on this, the on-site guests further discussed the Japanese industry chain and China’s domestic supply chain, analyzing the development opportunities, long-term prospects, and practical implementation logic of two-way opening, healthy competition and cooperation, and deep integration between the two. Leadership Panel: Capacity Coopetition and Customer Breakthrough: Winning the Southeast Asian Supply Chain Battle Moderator: Wacharapisuth Thannapong, Researcher, BCG (Bio-Circular-Green Economy Policy) Research Team, Thailand Development Research Institute (TDRI) Panelists: MARK BRIAN PIRIE, Senior Vice President Purchasing & Supplier Management Asia Pacific, Executive Board Member, Schaeffler Frank Yu, General Manager of the Automotive Rubber & Metal Components Business Unit and Thailand Branch, Shanghai Baolong Automotive Corporation The panelists assessed the overheating of three-electric system (battery, motor, electronic control) capacity in Southeast Asia. They noted that overcapacity in three-electric systems is a global trend. The capacity now deployed in Southeast Asia and Thailand already exceeds confirmed demand, intensifying market uncertainty and heightening investment concerns. Risks are structurally differentiated: Tier-1 suppliers are more conservative and risk-averse compared to China’s domestic vehicle makers that are rapidly going global. There is localized overcapacity in basic e-drive parts and low-difficulty electronic components, while supply bottlenecks persist for key items such as high-performance automotive-grade semiconductors, advanced materials, and electrical steel. This is also a core motivation for Chinese suppliers setting up in Southeast Asia. Moreover, Southeast Asia’s geographical advantages are prominent, and mine development in Australia is progressing rapidly. Many mines are set to commence production by Q3 next year. The core contradiction in the industry is not simply overall surplus, but a mismatch between the regional allocation of capacity, the technologies adopted, and actual market demand. Additionally, the guests noted that the core challenges in Southeast Asia and Thailand revolve around three major issues: regional adaptation, supply chain gaps, and industrial competition and collaboration. Enterprises must independently weigh risks and expansion scales based on their own supply chain conditions to find a development balance suited to their needs. Meanwhile, to adapt to the unique environment of Southeast Asia—characterized by high temperatures, high humidity, floods, complex road conditions, and underdeveloped charging infrastructure—the EV technologies originally designed for the Chinese and European markets must undergo localized R&D and verification. This process ensures the reliability of batteries, electronic controls, and lubrication systems, as well as overall vehicle durability. It is recommended that Tier 1 suppliers and upstream partners proactively collaborate in depth with OEM design teams. Even for domestically mature production car models going global in Southeast Asia, it is essential to iterate and optimize products by leveraging local expansion opportunities while drawing on the cost, process, and quality control expertise gained from large-scale domestic production. Leadership Panel: Techno-Economic Analysis and Strategic Pathways for Battery Material Localization in Southeast Asias Moderator: Jay Yu, Senior director, SMM Information & Technology Co., Ltd. Panelists: Brian, Sales Director for the Electrolyte Division in Japan, South Korea, and Southeast Asia, TINCI Materials Max Miao, Director, SEVB Thailand Feng Hao, Southeast Asia Marketing Director, Hefei Guoxuan High-Tech Power Energy Co., Ltd. The panelists noted that amid the restructuring of global manufacturing, Southeast Asia’s lithium battery industry faces both challenges and opportunities. Enterprises are following downstream OEM clients in going global, establishing nearby supply systems centered on customer needs. Three key operational aspects require consideration. First, at the policy level, Southeast Asia’s lithium battery industry must supply both the local market and target exports to Europe and the U.S. Regional policy changes have far-reaching impacts, requiring enterprises to conduct ongoing in-depth analysis and implement corresponding response strategies. Second, in terms of human and cultural factors, local traditions and family values are distinct, necessitating flexible management that fully respects local customs, cares for local employees, and stabilizes production teams. Third, regarding the industry chain, the region’s upstream lithium battery materials are notably underdeveloped. Key raw materials such as high-purity solvents, lithium chemicals, and functional additives currently rely heavily on imports from China, Japan, and South Korea. The establishment and improvement of local upstream and downstream supply capabilities urgently need to be addressed, making this a key focus for future enterprise deployment. In addition, they also mentioned that in H2 this year, NEV-related subsidies in Southeast Asia may be gradually phased out, and Thailand's EV 4.0 policy and the year-end tax rebate policy will also undergo adjustments. Drawing on China's NEV development experience, local automakers will gradually break free from reliance on policy subsidies and instead compete in the market by leveraging product strength and market-based pricing. This year, Thailand's NEV sales are conservatively estimated to reach 120,000 units, with a potential to hit 160,000 units. Compared with Japanese car models, Chinese NEV models have ample room for price adjustment, offering a clear advantage. Currently, battery enterprises are actively assisting automakers in expanding markets and securing more orders, while also suggesting that automakers moderately raise vehicle selling prices. The industry generally believes that automakers will most likely offset the operational pressure from subsidy reductions through price adjustments in the future. Procurement Matchmaking Meeting >Click to view more highlights from the event Check-in & Networking This is the end of the 2026 SMM (3rd) ASEAN Automotive Supply Chain Conference . Thank you for the support of all industry peers. See you next year!

[SMM Rare Earth Weekly Review: Rare earth prices overall held up well, with market transactions following suit] This week, Pr-Nd oxide prices continued to hold up well overall. Driven by purchases from large factories and the impact of supply reduction news, upstream suppliers continuously raised their quotations, and some metal plants also restocked accordingly. The actual transaction price of Pr-Nd oxide kept rising. As of today, the price of Pr-Nd oxide was raised to 762,000-766,000 yuan/mt.

China’s rare earth exports in H1 2026 operated under a temporary regulatory pause, set to expire on November 10. This resulted in a bifurcated market: light rare earths traded efficiently with high volumes, while heavy rare earths remained constrained, creating significant price premiums.