Scania’s €2B China Hub 🚛 Flying Cars UAE Deal 🚁 Mini Artificial Heart Implanted ❤️

China Insights Weekly for October 20. Unpacking China’s economic and technological advances.

2025-10-20 | subscribe | homepage

Welcome back to China Insights Weekly. Here are some of the key highlights for this week’s edition:

  • China unveils 500% faster oscilloscope and sub-ångström imaging chip, breaking tech barriers

  • 99.6% EV battery recovery rate sets new global benchmark for clean manufacturing

  • China Eastern offers free in-flight Wi-Fi to win back travelers from high-speed rail

  • “Rat-dried” plush toys go viral, reflecting Gen Z’s ironic take on beauty and creativity

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🚀 Headlines

Sweden’s Scania has inaugurated a €2 billion sustainable truck manufacturing hub in Rugao, Jiangsu Province. The 800,000 square meter facility, one of Scania's largest global investments, has a licensed production capacity of 50,000 vehicles a year and is expected to create approximately 3,000 local jobs. The plant will operate almost entirely on renewable energy, including biogas and certified green electricity, contributing to Scania's Scope 1 and 2 emissions reduction targets. Production is scheduled to begin in late 2025, with the first trucks for the Chinese market arriving in the first half of 2026. It will serve both the Chinese market and selected markets in Asia. Scania is the first Western original equipment manufacturer to be granted a full production licence for a wholly owned truck plant in China. The hub includes R&D centers and is part of the Traton Modular System, enabling the development of trucks for both global standards and specific Chinese market needs.

Xpeng Aeroht has secured 600 orders for its "Land Aircraft Carrier" in the Middle East, bringing its total global order book to 7,000 units. The company signed purchase agreements with UAE's Ali & Sons Group, Qatar's Almana Group, Kuwait's AlSayer Group, and the UAE Chinese Business Council. Xpeng Aeroht launched its international brand "ARIDGE" and announced that its Guangzhou flying car manufacturing facility was completed by the end of September. The company plans to begin mass production and delivery of the "Land Aircraft Carrier" by 2026, making it the first mass-produced flying car in China and globally. The vehicle is priced under 2 million yuan (USD 280,000), features a 3-axis, 6-wheel design, and has a CLTC driving range of over 1,000 kilometers.

China’s exports of new-energy vehicles (NEVs) surged 89.4% year-on-year to 1.76 million units in the first nine months of 2025, with BYD accounting for nearly 40% of total outbound shipments. BYD, which produces only NEVs, has rapidly expanded its global footprint. The company’s overseas sales soared 130% to 705,000 units over the same period, lifting it from the sixth- to second-largest Chinese auto exporter. Chery led overall vehicle exports with 936,000 units, a 12.9% increase. China’s total vehicle exports reached 4.95 million units during the period, up 14.8% year-on-year. New export licensing rules for electric vehicles will begin in January 2026. BYD is establishing overseas manufacturing plants in multiple countries, including Thailand, Uzbekistan, and Brazil.

In September 2025, global EV sales reached a record 2.1 million units, bringing year-to-date registrations to 14.7 million—a 26% increase from the same period in 2024. China accounted for the majority with 9 million EV registrations, a 24% year-on-year rise. Europe contributed 3 million registrations, up 32%. The US saw a 66% year-on-year increase in September, driven by expiring federal tax credits. China’s September sales hit 1.3 million units, with BEV volumes up 28% year-on-year to 0.8 million units, while PHEVs declined slightly to 0.47 million units.

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