Eugene Hsiao from Macquarie Capital says the value proposition of Chinese autos remains intact in many overseas markets in spite of tariffs and there are no more "blue oceans" for Chinese automakers to expand into.

Berlin

Chinese carmakers are increasingly targeting overseas markets, including Europe and Latin America, as competition intensifies at home. At recent auto shows and through sales data, it has become clear that their market share gains in Europe are coming largely at the expense of Japanese and Korean brands, rather than European manufacturers. 

Tariffs, such as a proposed 25% duty in Mexico, are being closely monitored by Chinese companies, which may influence decisions on local production and investment. Despite some downward revisions in annual sales forecasts, companies like BYD continue to expand their presence in multiple regions, focusing on establishing dealership networks and diversifying their market exposure.

Chinese carmakers taking market share in Europe from Asian brands

Well, I mean clearly the overseas markets are a very big driver for a lot of the Chinese auto companies I think we were very aware Domestically the competition in China is so fierce that there is a big push to look for new markets Generally speaking for these Chinese players It's more receptive areas like you mentioned possibly ASEAN or LATAM But more increasingly as we see with the Munich Auto Show into Europe as well And I think that's going to be a trend that will continue over the next couple years We are also of course attracting other new locations like Mexico and recently they are looking to Introduce tariffs to Chinese automakers to the amount of 25% What does this do to automakers like BYD who had earlier pledged a three billion dollar plant there? I think the tariff issue is something which the Chinese are very closely watching They generally don't like to make big decisions Especially about local production without some clarity on where the tariff picture is going to lie Now if that tariff comes through in Mexico, I think there could be another push to look for localization We will see I think that's a little bit too early to say But I would say overall the thing that's very important about Chinese autos is that where they're taking market share a lot of times It's not really from the Western brands. It's really from the other Asian brands I think that's what we've seen in Mexico So from that perspective the value proposition a lot of these Chinese cars I think remains intact even with some of these tariffs now in terms of the moves over in Mexico whether or not it imposes tariffs it of course has a fine balancing act whether or not it will accept billion dollars of investments or To keep and stay on the right side with a very important neighbor It's a very difficult question to answer I would say this when the Chinese automakers BYD Great Wall, etc Look at the overseas markets when they look at Mexico, which is part of North America But broadly speaking also LATAM they look at as a broader whole the market I'm Mexico is one market, but they've done very well in Brazil BYD, for example, I think is moving to Argentina recently. So you're looking at other opportunities in the region as well I think they'll try to just diversify their bets a bit rather than just focus on one country in terms of the IAA Mobility conference. Is there anything that's going on there that stuck out to you? I think clearly the big push and the wide availability of different cars from the Chinese makers is very interesting But one thing I think is a bit nuanced here is when people talk about the share gains in Europe this year I think Chinese automakers of the first half is about 5% share But it's not really taking share from the domestic players in Europe If you look at the Japanese and Korean players in Europe, I think last year is about 17% this year There's all 15% for the first half whereas Chinese players gained about 2% So you can almost say it looks like a direct kind of swap out from different Asian automakers into the Chinese automakers But overall the pie is about the same which is quite interesting So I think that's one dynamic that sticks out to me that I think people are still trying to figure out in Europe right now did you get caught off guard by BYD and it's Re I should say it's assessment of full year sales deliveries It had lowered his estimate by about 16% to 4.4 million Even with a push for growth Offshore, they still had to revise downwards their full year target. Yeah, it's a very tricky question I would say this I think very recently they've also mentioned that their overseas sales I think for the second half of the year, they think could double so overall That's roughly maybe a million units for 2025 So if you take that off of the supposed new guidance It looks like the domestic market with them is very weak and that comes down in my opinion really to the competition that we're seeing In China this year. It's exceptionally fierce. I would argue that over the last couple years in the Chinese automaker There are still a couple blue oceans some areas where you can build a new model and get a lot of demand I feel like this year there are no more blue oceans every single category There's at least one or two pretty strong competitors and BYD has to deal with that now Now as we were listening to her shall pong earlier talking about his expansion plans He said something that triggered my memory And I had spoken to him earlier on in the year in June where he says that they're planning to expand Into 60 countries and regions by the end of this year How are they doing so far? I mean, we only have a couple more months out to the end of this year Are they being a little bit too optimistic? I think the expansion part is something which they can achieve because it's really about just setting up the dealership networks in very specific countries And I think that's something which they can reach. It's the volumes that I think is the question mark How much of their volume can they really sell overseas? I think Arjun just asked the question about the tariffs and you know, Xiaopeng doesn't really seem that concerned But I think the reason why is because right now the volumes are relatively low now assuming they can grow much faster than the tariffs Will bite much harder and I think they'll try to look for a way to manage around that

Israel says it carried out a strike targeting Hamas leaders. One Israeli official says it happened in Doha, Qatar. CBS News' Ramy Inocencio reports.

Doha

Middle East Conflict

Israel targets Hamas leadership in Doha strike

The Trump administration launched a new immigration enforcement operation in Chicago, saying the latest federal crackdown in a US city would target the "worst of the worst criminals." But activists in the city remain defiant and say they will resist efforts by ICE to snatch people off the streets.

Chicago

Activists defiant as Trump launches ICE raids in Chicago

Norway's Labour Party has won four more years in government after seeing off a surge in support for the right. But exit polls predict it will only have a small majority, and its future may depend on how it navigates Norway's relationship with the rest of the world.

Oslo

Norway’s PM Stoere claims victory in general election

Officials in Nepal say at least 16 people are dead and dozens more injured after police opened fire on protesters. Tens of thousands, mostly young people, rallied in the capital Kathmandu against the government's ban on platforms including Facebook, X, and YouTube.

Kathmandu

Multiple fatalities as Nepal police fire on protesters

France's Prime Minister François Bayrou overwhelmingly lost a confidence vote Monday after nine months in office. CBS News correspondent Shanelle Kaul has more.

Paris

French PM François Bayrou ousted after losing confidence vote

The U.S. Supreme Court allowed the Trump administration to continue its sweeping immigration stops in the Los Angeles area after they were briefly halted. CBS News immigration reporter Camilo Montoya-Galvez has more.

Washington

Supreme Court allows L.A. immigration stops to continue

Two Palestinian gunmen opened fire at a bus stop on the outskirts of Jerusalem on Monday (September 8), killing six people in what police described as "a terrorist attack," one of the deadliest in the city in the past few years.

Jerusalem

Palestinian gunmen kill six at Jerusalem bus stop

U.S. President Donald Trump said he was ready to hit Russia with a second phase of sanctions after its largest air attack on Ukraine in nearly four years of war. The assault on Saturday caused serious damage in Ukraine's capital, including to one of its most important government buildings.

Ukraine Invasion

Trump considering second phase of sanctions on Russia

A drone launched by Yemen’s Houthi rebels struck southern Israel Sunday, hitting Ramon International Airport near Eilat and forcing a shutdown of airspace in the region.

Ilan and Asaf Ramon International Airport

Yemen’s Houthi rebels strike Israel's Ramon International Airport

Protests have erupted in Chicago after U.S. President Donald Trump threatened a federal crackdown, including sending National Guard troops and expanding deportations.

Chicago braces after Trump threatens National Guard deployment

Russia's largest overnight air attack of the war set the main building of the Ukrainian government in Kyiv on fire and killed at least four people, including an infant, Ukrainian officials said.

Kyiv

Russia launches biggest air attack of the war on Ukraine

Problems with a cable likely caused a Lisbon funicular railway popular with tourists to hurtle down a hill, killing at least 16 people and injuring another 22 when it crashed into a building, according to a preliminary report.

Lisbon

Deadly Portugal funicular crash likely due to problems with cable

U.S. indie director Jim Jarmusch unexpectedly won the coveted Golden Lion at the Venice Film Festival on Saturday with "Father Mother Sister Brother", a three-part meditation on the uneasy ties between parents and their adult children.

Venice

U.S. independent director Jim Jarmusch wins Venice top prize

Japanese Prime Minister Shigeru Ishiba said on Sunday (September 7) he has decided to resign, caving to ruling party pressure on him to take responsibility for a series of election losses amid voter anger over rising living costs.

Tokyo

Japan's Prime Minister Ishiba resigns after election losses

South Korea announced the deal on Sunday. The immigration raid was part of a criminal investigation targeting a major economic project of a key U.S. ally.

Savannah

South Korean workers detained in U.S. raid in Georgia to be released

Chicago officials agree that a federal crackdown on immigration is imminent. Saturday kicked off a week-long celebration of Mexican Independence Day.

Chicago officials agree a federal immigration crackdown is imminent

Wall Street took hits on the market after hiring slumped in August. The economy added 22,000 jobs, far below expectations, fueling fresh concerns about a slowdown.

Trump hits the links amid economic slowdown concerns

The United States is not talking about regime change in Venezuela, President Donald Trump said on Friday, as the United States ordered an additional 10 stealth fighter jets to a military buildup in the Caribbean.

Caracas

Trump plays down regime change in Venezuela amid military buildup

The Israeli military told Palestinians in Gaza City to leave for the south before bombing a high-rise tower as its forces advance deeper into the enclave's largest urban area.

Tel Aviv-Yafo

Israel tells Palestinians to leave as it pushes into Gaza City

US President Donald Trump's threats to deploy National Guard troops to Chicago, Baltimore, and New Orleans have ignited resistance from local leaders and residents, who argue the deployments serve as intimidation rather than crime prevention.

Trump to send National Guard to more cities

The White House said the U.S. is sending 10 F-35 fighter jets to Puerto Rico. It comes as the Defense Department confirmed that two armed Venezuelan F-16 fighter jets flew over a U.S. Navy ship in the region on Thursday.

U.S. to send F-35 fighter jets to Puerto Rico amid Venezuela tensions

President Trump signed an executive order to start the process of renaming the Department of Defense to the Department of War, restoring a name the agency last held in the late 1940s.

Trump orders Defense Department be renamed as Department of War

Xi and Kim, along with top officials from their countries, met on Thursday at Beijing’s Great Hall of the People a day after Kim attended a Chinese military parade alongside other foreign leaders including Russian President Vladimir Putin.

Beijing

China’s Xi and North Korea’s Kim meet in Beijing, pledge deeper ties

Two Venezuelan fighter jets flew over the USS Jason Dunham, multiple Defense Department officials confirm, calling the action a "show of force." CBS News' Willie James Inman and Charlie D'Agata report.

Two Venezuelan fighter jets fly over U.S. Navy ship, officials confirm

A massive Immigration and Customs Enforcement raid at a Hyundai manufacturing site in Georgia led to hundreds of immigrants being detained for apparently living and working in the U.S. illegally.

Breakdown