Of the 90 million vehicles (cars, trucks, and buses) produced worldwide in 2024, 31.3 million were produced in China, i.e. 34% of the glob al total, according to an Inovev report.

France is also following this trend, with many consumers now opting for cars from Chinese brands such as BYD, Xpeng, Beiking and Hongqi.

Against this backdrop, Sophos, a global leader of innovative security solutions for defeating cyberattacks, is drawing users’ attention to how their personal data could be used for malicious purposes.

Indeed, it is inadvisable to synchronize one’s phone or any other device with a vehicle, whether their own or even more so in the case of a rental car, as the car could use its internet connectivity to make a copy of contacts and other sensitive data and upload to the Internet, long before one have the ability of deleting it when returning the rental car, for example.

A modern vehicle is packed with computers, lidars, various radios, and external cameras.

What’s more, it is also equipped with aerial updating capabilities that could very well be repurposed as a surveillance platform.

According to Nate Drier, Technical Lead, Red Team, Sophos:

“As with any technology, given the opportunity, necessity, intent, and capability, in-vehicle technology can be misused. Car manufacturers can track the movements of modern vehicles in real time, and this is likely to be even truer for electric vehicles. Yet this information could be used to build rich maps of an environment encompassing both the physical and electromagnetic environment (by searching for Wi-Fi networks, the positions of cell phone towers, etc.).”

Sophos, therefore, recommends being aware and checking what manufacturers are collecting on vehicles, and what they can do using over-the-air update capabilities.

The decision, announced in a joint statement, comes after issues over leadership structure and financial instability, particularly on Nissan’s end.

Why the Deal Fell Apart

Honda, which has maintained stronger financial footing than Nissan, pushed to revise the original agreement. The initial plan was to establish a joint holding company, but Honda later proposed a new structure that would make it the parent company while Nissan became a subsidiary through a share exchange. 

Nissan, fighting with declining sales and a shrinking market capitalisation, was hesitant to accept this change in power dynamics.

According to Japan’s Asahi Shimbun, Honda executives grew more frustrated with Nissan’s sluggish progress in restructuring discussions. 

Nissan’s internal challenges, including weak financial performance and management instability, further complicated negotiations. 

While the deal was initially seen as a strategic move to counter rising competition from Chinese electric vehicle (EV) makers, the inability to align on a clear integration plan proved to be a stumbling block.

Beyond corporate disagreements, market volatility and the transition to electrification also impacted the decision to abandon the merger. Honda and Nissan have been losing market share in China, where competition from lower-cost EV manufacturers like BYD has increased. 

The merger was intended to bolster both companies’ ability to compete, but without a solid foundation of internal stability, the risks outweighed the potential benefits.

Nissan has been facing financial stress for years, with its market valuation now only a fraction of Honda’s. As part of its restructuring plan, the company recently announced a reduction in global production capacity by approximately 20% by the end of the 2026 fiscal year. 

This includes plans to cut its workforce by around 6,500 employees and scale down operations at several plants, including those in the U.S.

Even with the collapse of the merger, Nissan is not ruling out future partnerships. The company confirmed that it is seeking strategic alliances, with Taiwanese electronics giant Foxconn already in discussions about potential collaboration. 

Added to these, there is speculation that Nissan may partner with a tech firm to strengthen its EV development, mirroring Honda’s joint venture with Sony.

Limited Collaboration Moving Forward

While the full-scale merger has been abandoned, Honda and Nissan have confirmed that they will continue working together in a limited capacity.

The two automakers had already agreed to collaborate on software and electrified vehicles earlier this year, and this partnership will proceed despite the failed merger talks.

Recently, Tesla saw a decline in global deliveries, but in December alone, the company sold 83,000 vehicles in China, a 12.8% rise compared to the previous month. 

With China accounting for 36.7% of Tesla’s total deliveries in 2024, the market is standing resilient even though competition keeps increasing from local players like BYD and global economic stresses.

However, while domestic sales in China surged, exports from Tesla’s Shanghai factory declined by 24%, resulting in a 3.3% decrease in overall sales of China-made Model 3 and Model Y vehicles. The factory, once a cornerstone of Tesla’s global supply chain, saw its weakest export performance since 2021.

Globally, Tesla’s deliveries fell by 1.1% in 2024, the first decline in the company’s history. Factors such as reduced subsidies in Europe, a shift towards lower-cost hybrid vehicles in the U.S., and higher competition contributed to the decline. 

Again, the European Union’s imposition of a 7.8% tariff on Tesla cars manufactured in China compounded challenges for the automaker’s European operations.

Analysts attribute Tesla’s success in China to the country’s EV market, which accounted for 70% of global EV and hybrid sales in the first 11 months of 2024. According to industry data, over 90% of the global increase in EV sales during the year originated from China.

John Zeng, a market forecaster at GlobalData, noted that China remains the sole major market experiencing growth in EV sales, contrasting with declines or stagnation in other regions.

While Tesla maintained its top position in EV sales with 1.79 million deliveries, it faced competition from BYD. The Chinese automaker achieved a 12.1% growth in EV sales, delivering 1.76 million vehicles globally. 

BYD also made strides in international markets, with overseas shipments increasing by 71.9% to over 417,000 units, though it fell short of its export target of 450,000 vehicles.

Tesla and BYD continued their rivalry in China’s increasingly competitive EV market. Tesla extended financial incentives for its popular Model Y and Model 3 cars, including zero-interest financing and cash discounts, as part of efforts to sustain demand. 

Meanwhile, BYD bolstered its market position with its Dynasty and Ocean series, which have driven significant sales growth domestically and abroad.

This multi-year agreement initially targets Europe and Latin America, with plans to expand to the Middle East, Canada, Australia, and New Zealand. The initiative aims to make EVs more accessible to Uber drivers through competitive pricing and financing options.

Uber, an on-demand mobility platform, and BYD, an EV manufacturer, seek to reduce the overall cost of EV ownership for drivers. 

Despite Uber drivers adopting electric vehicles at a higher rate than private car owners, financial barriers are still a challenge. Providing affordable BYD models known for their great battery performance and lower maintenance costs, the partnership hopes to encourage more drivers to switch to electric.

Additional incentives under discussion include discounts on charging, vehicle maintenance, insurance, financing, and leasing. The companies are also exploring the integration of BYD’s autonomous-capable vehicles into Uber’s fleet, enhancing the prospect of self-driving technology on a global scale.

The partnership aligns with growing international actions to address climate change by reducing greenhouse gas emissions through transportation electrification. 

According to Uber CEO Dara Khosrowshahi, transitioning to EVs allows drivers to deliver greatly higher emissions benefits due to their increased road presence. This partnership supports Uber’s goal to be emission-free in U.S. and Canadian cities by 2030 and also introduces millions of passengers to eco-friendly rides.

“As the largest global agreement of its kind, we’re thrilled about the benefits this partnership will deliver for drivers, riders, and cities,” said Dara Khosrowshahi. 

“When an Uber driver makes the switch to an EV, they can deliver up to four times the emissions benefits compared to a regular motorist, simply because they are on the road more. Many riders also tell us their first experience with an EV is on an Uber trip, and we’re excited to help demonstrate the benefits of EVs to more people around the world.”

BYD’s executive team is positive about the collaboration. They noted its potential to accelerate urban mobility electrification and make sustainable transportation widely accessible.

“Uber and BYD share a commitment to innovate towards a cleaner, greener world, and I am excited to work together towards that future,” said Chuanfu Wang, chairman and president of BYD.

Stella Li, executive vice president of BYD and CEO of BYD Americas, also commented, “We are elated to join forces with a global leader like Uber to not only accelerate the transition to electric vehicles but also to make green transportation accessible and affordable for everyone. This collaboration marks a new era in the electrification of urban mobility, and we look forward to seeing our cutting-edge EVs become a common sight on the streets of cities worldwide.”

The two companies have signed a Memorandum of Understanding to collaborate on the decarbonisation of Africa’s commercial motorbike transport system.

As its primary hardware supplier, Ampersand will purchase BYD’s high-tech battery cells to build around 40,000 electric motorcycles by the end of 2026, with the long-term goal of electrifying a large portion of Africa’s 30 million commercial motorbikes. 

The partnership with BYD will enable Ampersand to rapidly scale its electric fleet and its charging infrastructure, which is already the largest in Rwanda and Kenya. This continued scaling will allow Ampersand to meet the increasing demand for commercial motorcycles across Africa as its cities expand and riders increase, providing a sustainable solution to support the continent’s economic growth. 

Josh Whale, CEO of Ampersand, said: “This partnership marks a major milestone for Ampersand as we continue to lead the charge in providing sustainable, cost-effective, mass-market EV solutions. 

“BYD’s world-leading battery cells and manufacturing scale, combined with Ampersand’s deep customer insight and technical product knowledge will help fast-track the electrification of Africa’s commercial motorcycles.

“Switching the millions of taxi and delivery two-wheelers to EV energy tech represents one of the world’s best value-for-money decarbonisation opportunities. At the same time, this transformation will save millions of hardworking motorcycle riders six hundred dollars each a year, driving clean economic prosperity.”

BYD’s cutting-edge lithium iron phosphate (LFP) cells have a long lifespan, an excellent safety record and are affordable for everyday users, making them ideal for mass-market electrification. 

Sihai Zhang, BYD Company, said: “Ampersand’s electric motorbike technology and charging network, along with its excellent customer understanding, make the company stand out to BYD as the clear pioneer in the electrification of Africa’s transport system. 

“Electrifying the intensively used commercial motorcycles found across Africa is a logical first step to decarbonising a very large potential market of motorcycles across the Global South.” 

At the same time as decarbonising transport, electric two-wheelers clean up the air and save drivers on average 45% a year on fuel and maintenance, improving lives and livelihoods – driving entrepreneurship and social mobility.