Industry News

GCC Market

Jeddah International Motor Show opens its 20th edition

The 20th Jeddah International Motor Show runs from 4 to 7 November at the Jeddah Center for Exhibitions and Events, with free public entry from 5 November, under the patronage of the chairman of the Saudi Automobile and Motorcycle Federation. Petrol, hybrid, battery-electric and range-extender models are on show, with Chinese brands such as JAC, Forthing and ICAR among the announced exhibitors.

Our thoughts The weight of Chinese and range-extender brands in Jeddah is a useful early signal of Saudi buyer interest for distributors in neighbouring markets, including Oman, planning their 2027 line-ups.

Global Finance & M&A

BMW cuts its 2026 car margin guidance for a second time

BMW now expects a 2026 automotive EBIT margin of between -0.5% and +0.5%, down from 1–3%, citing fourth-quarter charges from restructuring. Third-quarter revenue fell 5.8% to EUR30.45bn (USD34.2bn) and deliveries 6.3% to 551,075, with China down 25%. Chairman Milan Nedeljković confirmed a 20% cut in senior vice-president roles and said BMW is considering exporting China-built cars to other Asia-Pacific markets.

Our thoughts A German premium brand weighing exports from its Chinese plants shows how global supply is being redrawn; GCC importers should watch whether China-built BMWs are ever offered to the Gulf.

Global Market

China's October car retail sales fall 25%

Preliminary China Passenger Car Association data show October passenger-car retail sales down 25% year on year to 1.693 million, while new-energy vehicles fell 10% to 1.148 million, a record 67.8% share. Wholesale volumes, which count factory shipments, fell only 10% to 2.635 million.

Our thoughts With retail sales at home falling far faster than factory shipments, Chinese makers have every reason to push more cars abroad; expect sharper pricing and more brands competing for GCC distributors.

Global Policy & trade

EU Parliament committee votes to soften 2035 car CO2 target

The European Parliament's environment committee voted 48 to 30 to cut the 2035 CO2 reduction target for new cars from 100% to 87.5%, with up to 7.5 more points available through credits for low-carbon steel made in the EU. The full Parliament votes in December, after which the text must be agreed with member states.

Our thoughts If adopted, the change keeps European makers developing combustion and plug-in hybrid models beyond 2035, which supports the drivetrains most GCC buyers still choose.

Global Market

Volvo Cars' three-month sales fall 16% on China and US weakness

Volvo Cars sold 141,656 cars in the three months to October, down 16% on a year earlier, citing weak demand and local competition in China and the end of EV incentives in the US. Fully electric models rose to 34% of sales, and European orders for the new EX60 have passed 50,000.

Our thoughts With early EX60 output aimed at strong European demand, smaller markets such as the GCC may see limited first allocations.

Global Investment

Honda says it could resume building cars in Europe

Honda's head of Europe, Hans de Jaeger, said the company could build cars in Europe again, alone or with a partner, depending on the final form of the EU's proposed Industrial Accelerator Act, which would favour vehicles meeting 'Made in EU' content rules. He said there is no current plan and that present volumes would not justify a plant; Honda stopped making cars in the UK and Turkey in 2021.

Our thoughts Local-content rules are pulling Japanese makers back towards building where they sell, competition that GCC states seeking assembly investment will have to match with their own incentives.

Global Investment

Schaeffler to cut 3,460 European jobs and close five sites

German supplier Schaeffler plans to cut a net 3,460 jobs at 16 European locations, about 2,660 of them in Germany, closing four German sites and one in Belgium. It expects one-off costs of about EUR480m (USD540m) and yearly savings of about EUR300m (USD337m) from 2030.

Global Finance & M&A

Continental raises its 2026 margin and cash-flow outlook

Continental, now chiefly a tyre maker, reported third-quarter adjusted EBIT up 6.7% to EUR514m (USD578m), a 14.9% margin. It raised its 2026 adjusted EBIT margin target to 13.4–14.0% and its adjusted free cash flow forecast to EUR1.0–1.3bn.