The carmakers’ discussion on a merger is the clearest sign yet of how Japan's once seemingly unbeatable auto industry is being reshaped by challenges from Tesla and Chinese rivals.

The country's top EV maker has gained a greater share of the global auto market and now looks poised to top its 4-million worldwide sales target – and overtake Ford and Honda

VW’s decision to sell the plant comes after years of investor pressure on the carmaker to abandon presence in Xinjiang

The tax credit rules were aimed at lowering the US’ reliance on China's supply chains and could hurt America's hope of becoming a 'global leader' in electric vehicles, critics say

CATL founder Robin Zeng confirms battery licensing deals with Tesla and Ford, but US lawmakers may not allow a Chinese battery plant in the US given tense trade ties

Despite stalled talks between both the sides, it is unlikely that Beijing would want to torpedo its ties with the EU given its trade with the US is already hurt by geopolitics

Shenzhen-listed shares of the carmaker were up 5.74% at close of trade on Monday, while its Hong Kong-listed stock was up 3.53%

The directive comes as, starting Wednesday, Chinese electric vehicles heading to Europe will be subject to tariffs as high as 45.3%

The chief of the best-selling car brand in the US has been taking trips to China and testing Chinese EVs over the past 18 months to size up the competition

The agency expects carmakers to continue working towards making cheaper and innovative EVs — with China firmly in the lead. It also predicts a hit to Europe’s GDP from the EV transition

The EU is attempting to hold talks with some EV-makers outside of official channels, shaking “the foundation and mutual trust of the negotiations,” Beijing says

The European Commission looks to have gathered enough support for its planned tariffs to go through, despite pushback from major automakers and key bloc members