ESG performance or compliance are fast becoming a priority for most corporates. Looking beyond their ambitious targets about achieving carbon neutrality by 2045 while the country may have set a carbon neutrality for a later date, ESG is driving carbon footprint reduction and a quest for sustainable future. As early followers of ESG processes rake in carbon credits, it is companies like Tesla that made billions of dollars from selling carbon credits than electric autonomous cars. 
Carbon credits are a key part of financial performance and has helped it to achieve carbon credits, It is the same with BYD of China. Raking in carbon credits as a manufacturer of electric vehicles, BYD, aided by the Chinese Government’s ‘Made in China 2025’ initiative, is finding itself in a position of advantage as it eyes the European market for expansion. 
BYD could soon sell more than 300,000 vehicles in Europe alone with its factory in Hungary scheduled to begin operation in 2026. The capacity at the plant would be gradually expanded to 300,000 vehicles per year against the background of the company selling 16,000 vehicles across Europe in 2022. 
But that is not all: With a clear edge in electric vehicles as compared to Europe, US or the rest of Asia, which has been sold in developing electric vehicle technology, Chinese automakers like BYD have begun to eye plants of European manufacturers like Volkswagen as they falter and cut the flab. 
As Volkswagen is forced to sell its facilities in Dresden and Osnabrück, work that has been lost is going the way of Chinese car companies. Scrambling to meet the EU’s strict 2025 emissions targets, European manufacturers are buying carbon credits from Chinese electric vehicle manufacturers like BYD, which have accumulated a lot of them. 
With Europe planning to fine Volkswagen Eur 1.5 billion for falling short of emissions compliance, it is a not time away that Chinese electric vehicle manufacturers look poised to not only dominate the European market but also build their vehicles in the heart of Europe in big numbers rather than export them from their home country.
Having developed the habit of keeping technology and innovation to themselves and in their home country, the Chinese automotive players are playing smart with their electric vehicle card. They are triumphing on the basis that they are too good at making electric vehicles much like they are not so good at making ICE vehicles. They lack the knowledge of metallurgy that is needed to build internal combustion engines, mentioned an electro-mechanical engineer in Germany. It feels like a punch to the gut, added another engineer from Europe as he explained how the US and European flocked to China to save costs and are being bought over almost by the same companies that they once collaborated with in search of a new, large market.
 

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SPARX Group Co., (SPARX) has announced the establishment of the Mirai Creation Fund IV (Fund IV), with initial capital from major Japanese financial institutions and Toyota Motor Corporation. The fund targets total commitments of JPY 100 billion by March 2027 and is scheduled to begin investment operations in June 2026.

The fund marks a strategic evolution from its predecessors by integrating the investment scope of the Space Frontier Fund into the Mirai Creation framework. Consequently, Fund IV will focus on four key technology categories: Intelligent Technologies (including AI), Robotics, Carbon Neutrality and Space.

Fund IV is backed by five core participating companies – Toyota Motor Corporation, Sumitomo Mitsui Banking Corporation (SMBC), MUFG Bank, Mizuho Bank and SPARX – with an initial combined investment of approximately JPY 15 billion. The fund will be managed by SPARX Asset Management Co, a subsidiary of SPARX.

The fund aims to accelerate innovation by investing in unlisted venture companies, both within Japan and internationally, that possess transformative technologies. The inclusion of Space as a core category reflects a broader strategic integration, following the 2024 launch of the Space Frontier Fund II, aimed at leveraging space-related technologies to drive terrestrial growth and sustainability.

This move continues a decade-long partnership between SPARX and Toyota, which began with the first Mirai Creation Fund in 2015. Since then, the funds have raised over JPY 177 billion and invested in more than 150 companies globally, focusing on technologies that address critical social issues and promote human well-being

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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has announced the launch of DesignXathon 2026, the second edition of its flagship automotive design challenge.

The competition is open to students from Indian and global design institutes based in India, offering a platform to showcase futuristic mobility concepts.

The theme for this year's challenge is ‘Envision an iconic vehicle, Gen Z and Alpha aspire to own in 2036.’ Participants are tasked with designing a vehicle tailored for the 2035-2040 period, focusing on lifestyle relevance, sustainability and the integration of design philosophy with emerging technology.

DesignXathon 2026 will have cash rewards of up to INR 450,000, the winners have the opportunity to secure a 6-month internship with the Maruti Suzuki design team. The top 25 shortlisted teams will receive direct mentorship from experienced automotive design professionals. The last date for application submission is 13 July 2026.

The inaugural 2025 edition saw participation from over 400 students across 70 institutes, with winners emerging from the MIT Institute of Design, VIT Vellore and Strate School of Design. Currently, eight students from the first edition are undergoing internships with the company.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “Automotive design goes far beyond aesthetics; it is a blend of innovation, creativity, and fresh perspectives. I strongly believe that young minds play a pivotal role in challenging conventional design thinking and shaping the future of mobility. Through DesignXathon, we aim to nurture emerging talent and lay the foundation of a strong design ecosystem in India.”

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Prime Minister Narendra Modi outlined a transformative vision for India’s automotive and energy landscape, urging a strategic pivot toward alternative fuels and improved logistics to shield the economy from global volatility.

The Prime Minister was addressing a significant gathering in Telangana on Sunday, speaking against the backdrop of the ongoing West Asia energy crisis.

He emphasised that India’s automotive sector is central to navigating current geopolitical headwinds and highlighted the ‘unprecedented progress’ in ethanol blending, positioning it as a cornerstone of India’s sequential energy diversification strategy.

The Prime Minister detailed the government’s evolution in fuel management, noting that the initial push for universal LPG coverage has paved the way for a more sophisticated energy mix.  

The government is aggressively promoting CNG-based transport systems nationwide to provide a cleaner, cost-effective alternative to traditional liquid fuels.

"The need of the hour is to use petrol, gas, and diesel with great restraint," Modi asserted, framing energy conservation as a matter of national security. He noted that judicious consumption is essential to ‘save foreign currency and reduce the adverse effects of war crises.’

On the infrastructure front, the Prime Minister underscored the massive INR 1,750 billion allocation toward National Highway development. This 12-year investment trajectory has yielded significant results for the automotive and logistics sectors, particularly in southern India.

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German automotive luxury brand Porsche has announced the closure of three subsidiaries, as part of its strategic realignment to refocus on its core business.

The move comes following the sale of its stakes in Bugatti Rimac and the Rimac Group.

The strategic decision affects more than 500 employees across –

• Cellforce Group: Based in Kirchentellinsfurt, the battery cell specialist no longer fits the company's ‘technology-open’ powertrain strategy. An estimated 50 employees are set to be affected.
• Porsche eBike Performance: Operations at sites in Ottobrunn and Zagreb will be discontinued due to shifting market conditions for e-bike drive systems. This affects around 350 employees.
• Cetitec: The Pforzheim-based software developer, which specialised in data communication, will be closed. The move affects 60 employees in Germany and 30 in Croatia.

The management of these subsidiaries will now begin discussions with relevant works councils to manage the closures. The integration of software scopes from Cetitec is expected to align with Porsche’s broader restructuring of its Research and Development division.

Dr. Michael Leiters, Chairman of the Executive Board of Porsche, said, “Porsche must refocus on its core business. This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts — including our subsidiaries.”

This restructuring follows yesterday's announcement regarding the suspension of the Car-IT division and its integration into the R&D department under Dr. Michael Steiner. The company continues to adapt its industrial footprint to navigate what it describes as a challenging phase of transformation in the automotive sector.

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