+++ HONDA said Thursday it will import 2 of its U.S.-manufactured models for sale in Japan from the second half of 2026, using a framework under a tariff agreement between the 2 nations. Under the Japan-U.S. tariff deal, Japan decided to promote the domestic sale of passenger vehicles manufactured and safety-certified in the United States without requiring additional safety testing.
The Honda Passport Trailsport Elite, a large SUV produced in Alabama, and the Acura Integra Type S, a luxury vehicle produced in Ohio, will be sold with left-hand drive in Japan. Unlike in the United States, vehicles in Japan drive on the left side of the road. Honda did not release details such as prices and sales targets.
The Japanese automaker decided to sell the 2 models domestically after they were received well at an exhibition held in Chiba in January. “By introducing attractive models, we aim to enhance our product line-up to meet diverse needs in Japan”, the automaker said. Honda reimported vehicles produced in the United States in the past. The company also said it will begin accepting preorders for the Insight, a new electric vehicle, on March 19. The EV will be produced in China and imported into Japan. +++
+++ HYUNDAI on Thursday launched an updated version of its flagship Ioniq 9 with enhanced convenience features across all trims, the company said. In the entry-level trim, Hyundai added second-row ventilated and swivelling seats as standard features. The Connect trim now includes water-repellent front windows, while the top-tier Lounge trim comes with heated third-row seats as standard. Hyundai also expanded premium design elements previously available only in the top trim to the Connect trim to enhance the vehicle’s appeal. First launched in February last year, the Ioniq 9 is equipped with a 110.3 kWh battery, enabling a driving range of more than 500 kilometers on a single charge across all variants. +++
+++ As JAPAN struggles with a nationwide shortage of drivers, automakers, telecommunications companies and startups are ramping up efforts to introduce autonomous driving on local public bus routes. Self-driving technologies are also being developed for shuttle services at events and leisure facilities. Aiming for Level 4 autonomy (or fully unmanned driving under certain conditions) such players are accelerating work not only on vehicle technologies but also on the artificial intelligence that controls driving and the communications infrastructure that supports it. Broad adoption, however, will rest on establishing strong safety measures and cutting costs.
In late January, Toyota held a briefing on its new e-Palette electric vehicle, designed for use as a route bus and in similar services. At the event, the company unveiled a new transportation system under consideration. Cameras installed mainly at bus stops and in vehicles track passenger movements. AI then analyses the data in real time and optimizes operations by adjusting dwell time for boarding and alighting, service frequency and the number of vehicles in operation. “By utilizing AI, efficient operation becomes possible”, a Toyota official said. The e-Palette, which went on sale last autumn, is a compact EV that can carry 17 people including the driver. Though its width and length are roughly those of a minivan, its tall cabin allows passengers to stand comfortably. The vehicle can travel up to 250 kilometers on a single charge, and its compact design makes it easy to maneuver on narrow roads. Beyond regular route services, the e-Palette can also function as a shuttle for event venues and various facilities. Chief engineer Hirofumi Ota, who led its development, said, “We want to work with local governments to develop new communities”. Toyota has also partnered with Tier IV, a Tokyo-based startup, to introduce advanced driver assistance. The current system supports Level 2 autonomous driving, in which the driver remains responsible for operation and intervenes as needed. Toyota aims to upgrade the system to Level 4 autonomy in fiscal 2027. A future in which AI not only plans operations but also handles much of the driving itself is beginning to come into view. A communications system, which can continuously transmit information on road conditions and monitor driver and passenger status, is essential to the rollout of self-driving buses. In January, NTT Docomo Business and its partners conducted a demonstration of a Level 2 autonomous bus at Yokohama Zoological Gardens, known as Zoorasia. The trial focused on securing high-quality, reliable communications. Leveraging 5G ultrahigh-speed, large-capacity wireless technology, the team tested a system that transmits operational data and in-vehicle video to remote monitoring staff in real time. They also evaluated mechanisms for predicting communications conditions and automatically adjusting base stations and frequency bands to maintain stable connectivity. During the four-day verification test, around 200 people took part in trial rides. The partners in the test aim to introduce Level 4 autonomous driving on selected sections of public roads by fiscal 2027. A number of obstacles still need to be overcome, however, including the need to navigate around parked vehicles and operate safely on roads with poor visibility. An NTT Docomo Business representative expressed caution, noting that “Level 4 cannot be realized unless the accuracy of autonomous driving is further improved”. Level 4 autonomous driving refers to systems that can perform all driving operations under specific, limited conditions. This corresponds to “High Driving Automation”, the second-highest level defined by the U.S. Society of Automotive Engineers. In Japan, a revised road traffic law took effect in April 2023 allowing Level 4 vehicles to operate on public roads if their operating plans are approved by prefectural public safety commissions. To receive approval, operators must ensure remote monitoring of vehicles, establish systems to respond in the event of an accident and implement rigorous cybersecurity measures. According to the Ministry of Economy, Trade and Industry, Japan was already experiencing a nationwide shortage of 21,000 bus drivers as of 2024. The shortfall is projected to widen to 36.000 by 2030, heightening hopes that autonomous driving technology can help fill the gap. Numerous challenges remain before self-driving buses can be deployed in practical, everyday service. The advanced vehicles, monitoring infrastructure and related equipment required for such services entail substantial costs. Securing public understanding and acceptance of driverless vehicles on public roads is also crucial to their broader adoption. +++
+++ A new generation of the MERCEDES-BENZ A-CLASS is on the cards and it could use all-electric power, which would ensure the firm’s premium hatchback will live on well into the next decade. Even though the current A-Class has been around since 2018, the new car isn’t expected to arrive until 2029. That’s after the current model bows out in 2028 having seen its lifespan extended through a switch in production location to the Kecskemet plant in Hungary, allowing the Rastatt factory in Germany to build the new CLA. Robert Lesnik, Exterior Design Director at Mercedes, said: “The current A-Class is going to the Hungary plant next year. The plant can cater to the next-generation of A-Class”. Lesnik also said there wouldn’t need to be a significant revision to the production line to meet the criteria of the new MMA platform. Using the latest CLA as an example, Lesnik explained: “With CLA we had an EV then hybrid, but A-Class is 3 years away. The MMA platform is flexible, which is great because in the future we’ll have to change our minds faster than we do now”. Back in 2023, Mercedes laid out a plan for the 4 compact models that would use MMA: the CLA and CLA Shooting Brake plus the GLA and GLB. Lesnik said that while the original plan was for 4 models, the electric A-Class “would be the fifth”. An all-electric hatchback in the shape of the current A-Class would give Mercedes a suitable rival to the likes of the upcoming Audi A2 e-Tron. Unlike the Audi, which is set for a cab-forward design reminiscent of the classic A2, the A-Class won’t revert back to the cleverly packaged, upright shape that defined the original A-Class in late 1990s. “The next A-Class should have a more stylish cab-back body rather than cab-forward”, said Lesnik. As a result the electric A-Class won’t take on the streamlined and rather controversial shape of the EQE and EQS electric saloons, sharing the CLA’s longer bonnet and more traditional profile instead. As for the underpinnings of the next-generation A-Class, the MMA platform gives Mercedes the freedom not only to fit the same all-electric powertrain as the CLA uses, but the CLA’s hybrid unit too. This hybrid system has been developed to suit the stricter Euro 7 emissions standards due to come into force in 2027. The ‘A-Class’ name is likely to continue with the electric version too. Mercedes has back-tracked from the ‘EQ’ nomenclature that gave us the EQE and EQS by introducing the likes of the ‘Electric CLA’ and ‘Electric GLC’. +++
+++ NISSAN will shut its Sunderland plant if the European Union’s new manufacturing laws don’t include vehicles built in the United Kingdom, sources within the firm have warned. The new ‘Made in Europe’ proposals require that vehicles must be assembled in EU member states if they are to be sold through corporate fleets; a sector that makes up two-thirds of all European vehicle sales. The same parameters will apply to small EVs, according to the proposals released on Wednesday. +++
+++ Hyundai Motor Group’s domestic and international sales in February slowed again following a similar trend in January. The automakers improved its performance in January due to strong exports but saw poor results in February. The underperformance across all 5 automakers from SOUTH-KOREA is attributed to a 3-day reduction in operational days compared to the previous year due to the Lunar New Year holiday. According to Hyundai Motor and Kia, the combined domestic and export sales of the 2 companies in February totalled 553.929 units. This marks a 4% decrease compared to the same month last year (577.267 units). Specifically, domestic sales were 89.010 units and exports were 464.525 units; down 13.7% and 1.9% respectively year-on-year. Hyundai sold a total of 306.528 units, including 47.008 domestic units and 259.520 overseas units. Domestic sales decreased by 17.8% compared to the same month last year, while overseas sales fell by 2.3%, resulting in an overall sales decline of 5.1%. Among SUVs, the Palisade led with 3.081 units sold. Kia sold a total of 247.401 units, including 42.002 domestic units, 205.005 overseas units. This represents a 2.8% decrease compared to the previous year. Domestic sales dropped by 8.7% and exports by 1.5% year-on-year. By model, the Sportage was the top seller globally, with 47.081 units sold. Notably, electric vehicles surpassed 10.000 units for the first time, with 14.488 units sold. The previous record was 7.686 units in February 2023. The 3 smaller automakers (General Motors Korea, KGM and Renault Korea) saw combined domestic and international sales of 48.760 units in February, a 9.8% decrease from the same month last year (54.060 units). Domestic sales for these 3 companies fell by 26.5% to 6.628 units (from 9.028 units a year ago), while exports decreased by 6.4% to 42.132 units (from 45.021 units the previous year). GM Korea reported declines in both domestic and export sales last month. Domestic sales dropped by 37.4% to 927 units compared to the same month last year. Exports also fell by 6.5% to 35.703 units. The Chevrolet Track led GM Korea’s export performance with 22.699 units sold. The Chevrolet Trailblazer saw a 7.8% increase in sales to 13.004 units compared to the same month last year. Renault Korea, which is preparing to deliver its flagship model Filante, experienced a sharp decline in domestic sales. Domestic sales plummeted by 59.0% to 2.000 units compared to the previous year. However, exports surged by 55.4% to 1.893 units due to the completion of shipments for the Polestar 4 to North America. Specifically, 847 Grand Koleos, 546 Arkana and 500 Polestar 4 units were exported. Renault Korea’s total domestic and international sales decreased by 36.2% to 3.893 units compared to the previous year. KGM recorded growth in domestic sales last month, rising by 38.3% to 3.701 units; the highest in 5 months. This increase is attributed to the new pickup truck Musso, which sold 1.393 units, and the Torres EVX, which sold 1.445 units. However, exports fell by 22.6% to 4.536 units due to reduced operational days during the Lunar New Year holiday. As a result, KGM’s total sales decreased by 2.6% to 8.237 units compared to the same month last year. The total sales of the 5 automakers in February amounted to 602.689 units; a 4.56% decrease compared to the same month last year. +++
+++ TOYOTA will cut production of vehicles made at domestic plants for export to the Middle East by about 20.000 units from Monday through the end of March, it has been learned. The automaker has informed some of its suppliers of the plan. With the company’s monthly exports to the region averaging 30.000 units, the move represents a massive downsizing of its Middle East-bound production. The Strait of Hormuz, a key maritime shipping route, has been effectively blockaded following attacks on Iran by the United States and Israel. As the Strait of Hormuz is a major route for vehicle exports to the Middle East, the impact of the blockade is expected to spread beyond Toyota to other manufacturers. +++
+++ VOLVO has rejected the idea of a rival to the BMW iX4 and Audi Q6 Sportback, with the new Volvo EX60 mid-size premium SUV instead spawning a more rugged Cross Country variant next year. The brand’s product line owner for 60-branded vehicles, Akhil Krishnan told that while the capability is there in the platform to build a coupe model, “it is not in the plan”. Volvo has an EC40 coupe version of the smaller EX40, but sales are disappointing and Krishnan doesn’t see the potential for the larger coupe-SUV model, despite BMW confirming plans for iX4. Audi also has a Q6 Sportback on offer alongside the squarer model, but Mercedes’ new electric GLC isn’t likely to follow suit, despite the petrol GLC having a coupe variant. The EX60 Cross Country, which is likely to cost around 3.500 euro more than the regular EX60, gets off-road-inspired cladding, steel skid plates front and rear and a steel Cross Country nameplate on the rear pillar. There’s also air suspension that can raise or lower the car by 20 mm from its default position of 20 mm above the regular car. Volvo’s first Cross Country was the 1997 V70, and previous models to wear the badge include the V40, V60, S60, V90. It’s currently used on the EX30. Krishnan also ruled out Volvo going smaller in its model range. “There’s no demand for premium cars below that”, he said.+++