Behind the wheel newsletter

From the marketing desk

May is in the rearview mirror and we are hurtling headlong into the month of June. Can we really be mid-2026? There have been so many success stories so far this year and as you’d expect with JATO, there is much more of the same to come in Q3 and beyond..

Back to matters most recent. We came, we saw, and networked at Autosbuzz 2026, a premier event that took place in Spain from 19th – 20th of May. Besides our striking show stand where we demonstrated why our products are at the forefront of the ever‑evolving retail landscape, our own Paul Hilton, Head of Retail, chaired an insightful session titled, “From Lead to Lifetime Value: Fixing the Marketplace–Dealer Disconnect.” 

We continued to have a dominant PR presence. Besides the anticipated European volumes release, we also released a range of others featuring data on both automotive and two-wheeler registrations in the India market. Ensure you make regular visits to the resources part of our site to stay up to speed with those and more.

On the OEM side, we released a must-read data-led report on important activity in the U.S. market. More on that later.

Yours in motoring,

Mark Talmage-Rostron
Content Lead

OEM news

In May, our automotive team joined industry leaders in London at the FT Future of the Car Summit, using the opportunity to strengthen relationships and engage with new prospects. Pictured is Riccardo Caniati, Senior Sales Director, alongside Antonio Filosa, CEO at Stellantis.

Marios Alexandrou and Adam Embleton (also pictured) hosted a private roundtable with senior stakeholders. The discussion focused on the growing presence of Chinese brands in Europe, sustained pricing pressures, and the increasing role of finance in maintaining affordability.

The session provided the opportunity to hear directly from customers about the challenges they are facing and how JATO can better support them.

Advisory news

Once again, the Advisory team have created high quality, informative content that will help OEMs make sense of shifting market conditions and act with confidence. Anthony Puhl’s latest article examines the role of OEM incentives in the US market. Using the Honda CR-V ICE and HEV as a case study, he shows how incentives influence customer decisions, particularly when ownership models and fuel prices are changing.  

The team has also published a new report covering Brazil, Mexico, and the US from 2019 to 2026. It tracks rising prices and affordability by segment, with a clear view of how local dynamics shape each market.

In Europe, Maxime Cartier explores the quadricycle market and its role in the transition to electric mobility. Focusing on Italy and France, the piece looks at recent trends and the manufacturers shaping this emerging space.

Retail news

Besides the growing success of our VINView Pro launch in the EU, this month we also attended AutosBuzz for the second time in Spain as a platinum sponsor.

There we welcomed visitors to our booth for meaningful data discussions and our own Paul Hilton chaired a talk titled “From Lead to Lifetime Value: Fixing the Marketplace Dealer Disconnect”. Probably one of the most topical points of conversation centred on the speed at which AI is evolving and how retailers need to adapt quickly to it to get closer to the customer. 

The modern retailer is facing this and a myriad of other challenges right now so contact us to see how we can help.

Leasing and fleet news

Looking ahead, from 9-10 June, the team are off to the Fleet APAC Summit taking place in Bangkok Thailand. There, Helen Fisk, JATO’s Global Head of Leasing & Professional Services, will share vital insights on how Fleet and Leasing Operators can better structure, manage, and de-risk fleet operations in China. One of the world’s fastest-moving mobility markets. If you’d like answers to your burning questions on this topic, make sure you attend.

JATO in the news

In May our Advisory team launched a new report that revealed how the JAECOO 7 managed to secure 7th place in the UK C-SUV segment within its first year on the market without relying on hefty discounts. Electing instead for a smarter approach using smart finance strategies. Automotive News ran the story where they unpacked the data and revealed how the JAECOO 7’s success was largely powered by JATO’s Monthly Payments solution. See what they had to say then read the full report.

Overview of local markets

As an established global company operating across 51+ countries, it stands to reason that there will be a lot happening in all the geographies that we have a presence in. That ongoing activity has brought about the aggregation of a lot of meaningful and actionable data that will be beneficial for you and your business. We’ve been busy putting together an overview of the regions we operate across, so read on to see what has been happening across Europe, Asia Pacific, and The Americas this month.

Europe

European automotive markets in late May 2026 confirm an accelerating electrification trend, reinforced by geopolitical pressures, policy actions and intensifying competitive dynamics.

Demand for electrified vehicles continues to strengthen. According to Reuters data published May 27, total passenger-car registrations across the EU, UK and EFTA rose 7% YoY in April to 1.15 million units, with electrified vehicles (BEV, PHEV, HEV) increasing ~21% and exceeding two-thirds of total registrations. This trend is further amplified by persistently high fuel prices linked to the Iran conflict, which continue to influence purchasing decisions toward lower-emission vehicles.

Competitive pressure is increasingly being driven by Chinese OEM expansion. Chinese automakers doubled European sales in April to nearly 113,000 units, achieving a record ~10% market share. Brands such as BYD (+114.5%) and Chery (+322%) are expanding rapidly, while Tesla has shown signs of recovery (+46.5% registrations), though still facing intensified competition. This shift is reshaping the competitive landscape, particularly in price-sensitive segments.

Industrial strategy adjustments are also becoming more visible. Stellantis announced a €60 billion long-term plan on May 26 focused on partnerships, platform simplification and a multi-powertrain approach spanning ICE, hybrid and EV technologies. The move reflects a broader industry trend toward cost-sharing, supply-chain resilience and reduced capital intensity. Parallel concerns are emerging around European overcapacity, with OEMs exploring partnerships—including with Chinese manufacturers—to optimize plant utilisation.

On the technology front, May saw continued product and ecosystem development. New EV launches, such as Ferrari’s first BEV, and expanded access to Tesla charging infrastructure for European OEMs highlight ongoing investment in electrification and infrastructure integration, reinforcing the region’s transition toward software-defined and connected mobility.

From a regulatory and macroeconomic perspective, market conditions remain fragile. Inflationary pressures driven by energy costs and geopolitical risks continue to weigh on consumer confidence and OEM margins. At the same time, policy frameworks are evolving toward more targeted incentives and industrial protection measures, particularly as EU-China trade relations enter a more structured and conditional phase.

Overall, late May developments confirm Europe’s transition is now structurally embedded: electrification is accelerating due to both regulation and economic conditions. However, the region faces mounting competitive pressure from China, persistent cost volatility, and increasing reliance on partnerships to sustain profitability.

Asia Pacific

Asia-Pacific automotive markets in late May 2026 continue to exhibit a dual-speed dynamic characterised by weak domestic demand in China and strong export-driven growth, alongside escalating technological competition.

China’s domestic automotive market remains under pressure. Recent data indicate that New Energy Vehicle (NEV) retail sales declined approximately 11% year-on-year in the first 24 days of May, despite maintaining a high penetration rate of ~62.5%. This confirms continued demand softness following subsidy reductions and price competition, even as electrification penetration remains structurally high.

At the same time, exports continue to provide a critical growth engine. Chinese EV exports increased approximately 40% year-on-year in April, reaching over 278,000 units, with Europe and Asia remaining key destinations. Overall vehicle exports are expected to exceed 10 million units in 2026, underlining China’s expanding dominance in global supply chains. This reinforces a strategic shift among Chinese OEMs toward international markets to offset domestic weakness.

Competition within China is intensifying significantly. Domestic OEMs are engaging in aggressive pricing strategies and rapid product launches. Reports highlight expected strong sales momentum for new models (e.g. Xpeng), while Tesla continues to face increasing competition despite maintaining strong volumes. Additionally, EV manufacturers such as Xiaomi continue investing heavily in AI and software capabilities, further blurring the line between automotive and technology industries.

Policy and regulatory shifts are also shaping the competitive landscape. Adjustments to subsidy structures and pricing mechanisms are driving a transition toward more sustainable, profit-oriented growth models rather than volume-driven expansion. This is likely to support consolidation among weaker players while favouring technologically advanced OEMs.

Geopolitically, supply chains remain exposed. China’s continued control over critical materials, such as rare earths, and broader trade frictions are reinforcing the strategic importance of vertical integration and localisation efforts across Asia-Pacific markets.

Overall, late May developments reinforce Asia-Pacific’s position as the global centre of automotive production and innovation. However, the region faces increasing internal competition, demand volatility, and policy-driven transformation, with exports and technological leadership remaining key pillars of resilience.

The Americas

Automotive markets in the Americas in late May 2026 continue to be shaped by regulatory developments, trade policy uncertainty, and evolving technology strategies.

A key regulatory development occurred on May 26–27, when Volvo Cars received U.S. government approval to continue importing vehicles equipped with connected-car technology despite restrictions targeting Chinese-linked software and hardware. This highlights increasing scrutiny over data security and supply chains, which is becoming a defining factor for market access in the U.S. automotive industry.

Trade policy remains a central theme. The aftermath of the U.S. Supreme Court ruling earlier in 2026 continues to generate financial implications for OEMs, with automakers expecting large-scale tariff refunds. At the same time, uncertainty persists regarding future tariff policy and potential additional duties on imported vehicles, maintaining pressure on pricing strategies and localisation efforts.

These conditions are accelerating industrial realignment. OEMs are increasing prioritising North American production to mitigate tariff exposure and comply with regulatory requirements, while also strengthening regional supply chains. The environment continues to favour domestic manufacturing and reinforces the importance of USMCA-compliant production strategies.

On the demand side, structural powertrain shifts persist. Electrification momentum remains subdued relative to other regions, while hybrids are gaining prominence as a more cost-effective and flexible alternative. OEM portfolio strategies are increasingly reflecting this shift, balancing EV development with hybrid expansion.

Policy discussions are also evolving toward long-term infrastructure funding models. Proposals such as EV-specific road usage fees continue to surface, reflecting the broader fiscal implications of declining fuel tax revenues.

Overall, the Americas remain in a transitional phase. While regulatory clarity around tariffs is improving and providing short-term financial relief, longer-term uncertainty persists. The market continues to move toward a hybrid-dominant mix, shaped by policy constraints, consumer affordability considerations, and ongoing geopolitical and technological shifts.