Blissful Wednesday! It is July 1, 2026, and that is The Morning Shift — your each day roundup of the highest automotive headlines from world wide, in a single place. That is the place you will discover an important tales which can be shaping the best way Individuals drive and get round.
On this morning’s version, we’re BYD’s goals for the EV gross sales crown, and people manufacturers which can be succeeding in our fashionable automotive market. We’ll additionally have a look at the state of Western automakers in China, and the weapons producers taking chips from automobiles.
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1st Gear: Tesla took the EV gross sales crown again from BYD earlier this 12 months, however BYD is poised to take it again
Approach again in 2024, BYD beat Tesla for pure EV gross sales for the primary time. The Chinese language firm has largely remained forward of the American one, save for a dip in gross sales in the course of the first quarter of 2026 — a dip massive sufficient for Tesla to take the crown again. Now, although, it is trying prefer it’ll return to BYD. From Bloomberg:
BYD Co. is poised to reclaim the title of the world’s prime vendor of totally electrical automobiles from Tesla Inc. because the Chinese language automaker ships an rising variety of autos overseas.
The maker of the Dolphin delivered 557,090 battery-electric fashions within the three months by way of June, based on figures launched Wednesday. Whereas that is fewer than in the identical interval final 12 months, it will in all probability be sufficient to beat Tesla. The US producer is anticipated to report quarterly gross sales of round 396,500 autos subsequent week, based on analyst estimates compiled by Bloomberg.
BYD first overtook Tesla within the fourth quarter of 2024, and maintained a major lead by way of 2025 as Elon Musk’s political actions and shut ties with US President Donald Trump disenchanted customers, significantly in Europe.
One automaker makes good automobiles, the opposite alienates its goal market by cozying as much as far-right race nationalist events across the globe. I am unable to think about why Tesla is shedding in gross sales.
2nd Gear: The dire U.S. auto market is not so dire for Hyundai, Kia, and Honda
2026 has been a nasty 12 months for automobile gross sales writ massive, however there’s an exception to the rule: Hybrids, which have gone gangbusters as gasoline costs have climbed. Hyundai and Kia have ridden that wave to gross sales success, whereas Honda has discovered success the old style approach. From Automotive Information:
Hyundai and Kia racked up extra U.S. gross sales positive aspects in June on sturdy hybrid and crossover quantity, whereas Honda Motor Co. quantity rose 17 p.c on strong CR-V and Accord demand.
Gross sales final month rose 11 p.c to 77,555 at Hyundai and 10 p.c to 70,507 at Kia, the businesses stated July 1.
Hybrid quantity, up 74 p.c at Hyundai and 187 p.c at Kia, drove the positive aspects final month, the businesses reported.
Two of Hyundai’s core crossovers, Tucson and Palisade, posted double-digit positive aspects of 20 p.c or extra, whereas Kia’s general crossover deliveries rose 4 p.c.
Kia stated its retail gross sales additionally posted double-digit positive aspects final month, up 17 p.c.
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At American Honda, June quantity rose 17 p.c on the Honda division – with Accord up 49 p.c, CR-V up 30 p.c and Civic up 15 p.c – and 13 p.c at Acura.
Honda stated gross sales of electrified fashions, practically all of them hybrids, rose 11 p.c to 36,580.
The Korean triplets have been making some actually nice stuff lately, so it is good to see that mirrored in gross sales. Possibly American automobile patrons do have style. If solely we may get all of them to cease shopping for boring grayscale automobiles.
third Gear: Chinese language patrons are abandoning Western manufacturers
Ten years in the past, Western automakers have been tripping over themselves to get a foot within the door within the profitable Chinese language market. Now, although, Chinese language automakers are constructing higher automobiles for much less cash — and the Western automakers are shedding out to home gross sales. From the Wall Road Journal:
The mid-2010s have been a golden age for Western carmakers in China, the world’s greatest auto market. Manufacturers comparable to Buick and Volkswagen thrived as a newly empowered class of patrons could not get into international automobiles quick sufficient.
However now that footprint is slipping away.
The most important Western automaker in China, Volkswagen, noticed the market share for its manufacturers fall to 9.7% in 2025 from 14.7% in 2015, based on knowledge from business consulting agency AlixPartners. The German carmaker is now eyeing tens of hundreds of job cuts globally, partially due to misplaced floor in China. Volkswagen went from $5 billion in revenue from its Chinese language operations to a projected $228 million to $684 million this 12 months.
At this time, Western automobile corporations face intense competitors from the native corporations they as soon as taught make automobiles. American manufacturers’ complete market share fell to five% final 12 months from 12% in 2014, based on AlixPartners.
Chinese language automobiles that provide extra options, higher expertise and extra aggressive pricing make up two-thirds of recent automobile gross sales within the nation and have nearly totally elbowed international producers out of the electrical and plug-in hybrid market. Even Tesla, which helped spark China’s EV growth, has seen its market share decline there.
We’re extra alike the common Chinese language citizen than most individuals would in all probability prefer to admit. All of us get pleasure from a pickup truck doing donuts, a cool fireworks explosion, and an affordable automobile made regionally that provides extra options than the competitors.
4th Gear: Weapons producers are taking automotive chips to construct missiles
America has plowed by way of numerous our missile stock, and the federal government is providing large cash to any firm who may also help it restock. Which means a fertile floor for startups trying to get into the weapons enterprise, and a wealth of recent corporations that at the moment are grabbing components from automotive provide chains. From Reuters:
WASHINGTON, July 1 (Reuters) – Protection tech startups are repurposing automotive chips and pipes utilized in fracking — whereas copying manufacturing strategies from drugmakers — in an effort to ship weapons to the Pentagon sooner and at decrease price.
Hovering demand for rocket motors used to energy missiles and different weapons has spurred new desirous about provide chains. In search of large returns, Silicon Valley-style startups at the moment are taking up protection corporations which have lengthy dominated the business, pulled into the competitors by a necessity for manufacturing velocity, excessive quantity and decrease prices, based on ten business executives, consultants and U.S officers interviewed by Reuters.
The U.S. has plowed by way of over fifty thousand rockets, missiles and different projectiles propelled by rocket motors because the Russian invasion of Ukraine in 2022 by way of the U.S. assault on Iran, Pentagon knowledge exhibits. Washington is setting apart $53 billion and simplifying procurement guidelines to extend crucial missile and rocket manufacturing.
Personally, if I noticed what our missiles are getting used for, I would not be champing on the bit to help in that degree of mass destruction. That is simply me and my conscience, although. I perceive not everyone seems to be so encumbered by morality.
Reverse: Iconic?
The Historical past Channel calls the Thunderbird “Ford Motor Firm’s iconic sports activities automobile.” I really feel like there could also be only one or two more-iconic sports activities automobiles from Ford. I might be mistaken.
The Gas Up
At this time’s common value for normal is equivalent to yesterday’s, and mid-grade and premium are literally barely up. Is that this the top? Is the sky falling? Will the heavens rain fury upon us?
On The Radio: Femtanyl – ‘GIRL HELL 1999’
The Supreme Courtroom banned trans children from enjoying sports activities yesterday, upholding legal guidelines that enable for baby genital inspections. Issues are unhealthy, y’all. Have some loud transsexual music about it.
