AUTOMOTIVE NEWS

Welcome to this week’s comprehensive update on the automotive industry. This edition covers significant developments, including trade tensions affecting EV incentives, strategic collaborations for emissions compliance, the evolving landscape of connected vehicle regulations, and notable market trends.

The ongoing trade dispute between the United States and Canada has led to policy adjustments impacting electric vehicle (EV) incentives. Toronto has excluded Tesla vehicles from its financial incentives for taxis and ride-sharing services. Mayor Olivia Chow cited trade tensions with the U.S. as the reason for this exclusion, reflecting the broader implications of international relations on local EV adoption strategies.

In a move to meet stringent European Union CO₂ emissions regulations, Honda and Suzuki have joined Tesla’s CO₂ emissions pool for 2025. This collaboration allows these automakers to offset their emissions by pooling with Tesla, thereby avoiding potential fines and demonstrating the industry’s shift towards cooperative compliance strategies.

The rapid advancement of connected vehicle technologies has prompted regulatory bodies to address associated security and privacy concerns. In 2024, U.S. agencies like the Federal Communications Commission (FCC) and Federal Trade Commission (FTC) implemented measures to mitigate risks, including banning imports of certain connected vehicle components from China and Russia and settling cases involving improper data sharing by automakers. These regulatory efforts are expected to intensify in 2025, emphasizing the need for robust data privacy and security protocols in connected vehicles.

The automotive display units market is projected to grow from USD 42.15 billion in 2025 to USD 74.78 billion by 2035, at a compound annual growth rate (CAGR) of 5.9%. This growth is driven by the increasing integration of advanced infotainment systems, head-up displays (HUDs), and digital instrument clusters in vehicles, enhancing the in-cabin experience for consumers.

The automotive engineering services market, valued at USD 1.83 billion in 2025, is expected to reach USD 3.51 billion by 2035, with a CAGR of 6.7%. This expansion is attributed to the rising demand for electric and autonomous vehicles, which require advanced engineering solutions for vehicle design, powertrain optimization, connectivity enhancements, and software integration.

The automotive industry witnessed 462 deals in 2024, a 20% decrease from 2023. However, improving market conditions signal a strong rebound in 2025, with increased merger and acquisition activities anticipated as companies adapt to evolving market dynamics and technological advancements.

Autoplus Limited, a longstanding car parts and equipment store in Norton, Stockton, has announced its closure after over 20 years of operation. The business entered voluntary liquidation on March 10, leaving both customers and staff disheartened. This closure reflects broader struggles in the retail sector, amplified by rising employer National Insurance Contributions.

The Federal Trade Commission (FTC) has issued nearly $1 million in refunds to Vroom customers. Vroom was accused of misleading customers about vehicle inspections and failing to deliver titles promptly, highlighting the importance of transparency and accountability in automotive sales practices.

The North American International Auto Show is set to return to its traditional January timeframe in 2025, after no show was held in 2024. The event will feature major automakers and new vehicle showcases, offering insights into the latest industry trends and innovations.

These developments underscore the dynamic nature of the automotive industry, influenced by geopolitical factors, technological advancements, regulatory changes, and evolving consumer preferences. Staying informed about these trends is crucial for stakeholders to navigate the road ahead effectively.

Stay tuned for next week’s update, where we will continue to explore the latest developments shaping the automotive landscape.