Stellantis will reduce its production capacity by 800,000 vehicles per year in Europe
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Stellantis will reduce its production capacity by 800,000 vehicles per year in Europe
- Stellantis Group management announced its 2026-2030 strategy at a press conference on Thursday, May 21, 2026 . The carmaker plans to reduce its European production capacity by 800,000 vehicles per year by 2030 (i.e., 15% of its European production capacity) and could sell or share four of its European plants currently experiencing significant overcapacity, such as Rennes (France), Cassino (Italy), Villaverde (Spain) and Eisenach (Germany).
- The carmaker is counting in particular on its Chinese partners Leapmotor and Dongfeng to saturate some of its factories, such as those in Rennes (with the help of Dongfeng ) and Villaverde (with the help of Leapmotor ).
- We have known since last year that Stellantis could saturate another factory, the one in Zaragoza (Spain), thanks to the help of Leapmotor which would produce several of its models there.
- Stellantis management also indicated that future investments would primarily go towards the four brands that achieve the largest sales volumes within the group, namely Peugeot, Fiat, Jeep and Ram.
- The ten other brands that will receive less investment will be limited to a specific region. Finally, low-volume brands like DS and Lancia will come under the direct control of Citroën and Fiat respectively, meaning they will lose their independence due to sales deemed too low.
- The Maserati case remains open as BYD could make an offer as early as this year to acquire this luxury brand.
The Turkish market has grown significantly over the last three years
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The Turkish market has grown significantly over the last three years
- Light vehicle sales have increased significantly in Turkey in recent years, rising from 783,000 passenger cars and light commercial vehicles in 2022 to 1,233,600 in 2023, 1,238,500 in 2024, and 1,368,400 in 2025. They nearly doubled between 2021 and 2025. According to various official sources, this strong growth (the Turkish market had never reached one million units before 2020) is primarily due to a gradual economic recovery following the 2020 COVID-19 crisis and improved household incomes. This improved performance facilitated a rebound after the poor years from 2018 to 2022, when the Turkish market plummeted to 600,000 units (in 2018) and even 400,000 units (in 2019) before rebounding. and stabilize at 800,000 units (in 2020-2022).
- Despite this progress, it's important to note that Turkey remains under-equipped compared to European countries , as this country, with a population similar to Germany's, is still far from reaching the German market volume (3,123,000 units in 2025). The Turkish market volume in 2025 represents less than half that of Germany, with a comparable population.
- However, it is worth noting that proactive public policies in Turkey in recent years have encouraged local customers to purchase battery electric vehicles despite their high price. These proactive policies have fueled strong growth in BEV sales in Turkey, which reached a 17.7% market share in 2025, compared to 10.7% in 2024 and 7.5% in 2023, with the emergence of a local player ( Togg ) strongly supported by the government. In 2026, BEVs continued their upward trend in the Turkish market, with a market share of 18.2% recorded in the first quarter.
The Chinese company GAC is starting its European production
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The Chinese company GAC is starting its European production
- GAC (Guangzhou Automobile Group) is a Chinese carmaker that produces Honda models under license in the Guangzhou region, but also owns its own brands, Trumpchi and Aion, with Aion being GAC's dedicated electric vehicle brand. Last year, these two brands accounted for 629,000 vehicles produced, compared to 789,000 projected for 2024. GAC therefore needs new markets to revitalize its business. This is why the carmaker has decided to establish itself in the European market through its Aion brand, by partnering with the Austrian company Magna-Steyr. The first Aion UT and Aion V models, both battery electric, have rolled off the assembly line at the Magna-Steyr plant in Graz, Austria , the same plant that has also been producing the Chinese carmaker Xpeng G6 and G9 models in SKD (semi- knocked down) kits since last autumn. GAC thus joins BYD, Xpeng , and Chery , which already assemble cars in Europe. This local production strategy is primarily aimed at eliminating the specific customs duties imposed by Brussels on Chinese carmakers for electric vehicles.
- The two models Aion UT and Aion V are in the C segment, one of the most popular segments on the European market.
- The Aion UT is a sedan designed in Milan, Italy, and positioned as the entry-level model in the range. It offers a range of 430 km, thanks to its battery electric motors, available in 136 hp (100 kW) or 204 hp (150 kW), and its 44 kWh or 61 kWh LFP batteries. It is 4.27 m long, 1.85 m wide, and 1.58 m high. Its wheelbase reaches 2.75 m, 7 cm longer than that of a Peugeot 308 or a Citroën C4, resulting in exceptional interior space considering its exterior dimensions.
- The Aion V is a 4.61m long SUV, technically close to the Aion UT.
Toyota manages to resist in China
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Toyota manages to resist in China
Japanese carmakers are generally struggling in China, but Toyota is faring better than Honda or Nissan, whose sales collapsed much more sharply in 2024 and 2025. Why? Because Toyota combines several structural advantages and some strategic decisions that cushion the blow of a market now dominated by Chinese carmakers.
1. A more resilient product strategy than its competitors. Hybrid vehicles remain a strong pillar for Toyota, including in China . Even if sales are declining, the brand benefits from an image of reliability and expertise accumulated over several generations, giving it a more stable customer base than Honda or Nissan, which are much more exposed to the decline of pure combustion engines.
2. Chinese brands dominate the electric vehicle market, but Toyota has reacted faster than other Japanese carmakers by launching low-priced electric models (BZ3, BZ3X) through its joint ventures GAC and FAW, thus limiting the erosion of its market share. These models are now offered at around €12,000–€12,500, an aggressive positioning that allows it to remain competitive.
3. Toyota has adapted to the market more quickly than VW or other Japanese carmakers. They have agreed to sacrifice their profit margins, something Volkswagen long refused to do. The price war in China is fierce, and Toyota has chosen to respond directly, unlike VW, which is feeling the greater pressure from BYD and local brands.
4. Local technology partnerships: Toyota, for example, uses BYD's Blade batteries on some models, which reduces its costs and improves its competitiveness.
5. A more robust brand image : Toyota benefits from a good reputation, which cushions the fall better than brands perceived as less innovative or less reliable.
6. Toyota remains a "long-term" brand : Chinese carmakers innovate quickly, but their product cycle is very short (3 years), which can create a perceived risk regarding durability. Toyota, on the other hand, capitalizes on decades of technical validation and reliability, a significant psychological advantage for some Chinese buyers.
Honda abandons all its electric vehicle projects
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Honda abandons all its electric vehicle projects
- After abandoning its electric vehicle projects with the American group GM, then abandoning its electric vehicle projects with the company Sony (AFEELA 1 and AFEELA 2 in the D/E segment), the Japanese carmaker Honda is now abandoning its own electric vehicle projects, mainly the Honda 0 Series projects which were unveiled last year at CES 2025.
- The Honda 0 Series (D/E segment) were rolling prototypes of a sedan and an SUV with avant-garde styling, powered by a battery electric motor, which were slated for international launch in the coming months. These two models were intended to form the backbone of Honda's future all-electric lineup.
- But Honda's current financial difficulties (the carmaker sold only 3.4 million vehicles in 2025 globally, down 9% compared to 2024) compared to the cost of putting these two models into production, as well as the slow adoption of battery electric vehicles, particularly in Japan and the United States (two of Honda's main markets) aggravated by reversals in government policies, have convinced the Japanese carmaker to put this new experiment in electric vehicles on hold for now, while waiting for better days.
- Many carmakers, like Honda, have halted or slowed their electrification programs , including Ford, GM, and Chrysler (the American branch of Stellantis), while Chinese carmakers, Volkswagen, and Renault continue to make progress in this area. Only time will tell which carmakers were the most forward-thinking. For its part, Honda has decided to focus its efforts on designing hybrid vehicles, a field in which Honda already has extensive experience.