happy Wednesday! It’s July 1, 2026, and this is The Morning Shift – your daily roundup of the top automotive headlines from around the world, all in one place. This is where you’ll find the most important stories that are shaping the way Americans drive and get around.
On this morning’s edition, we’re looking at BYD’s goals for the EV sales crown and the brands that are succeeding in our modern automotive market. We’ll also look at the situation in China with Western automakers and weapons manufacturers taking chips from cars.
First Gear: Tesla took the EV sales crown from BYD earlier this year, but BYD is ready to take it back
In 2024, BYD beats Tesla for pure EV sales for the first time. Except for a decline in sales during the first quarter of 2026, the Chinese company has largely remained ahead of the US company – a decline big enough for Tesla to take back the crown. However, now it looks like it will go back to BYD. From bloomberg: :
BYD Co. is set to reclaim the title of the world’s top seller of fully electric cars from Tesla Inc. as the Chinese automaker is shipping increasing numbers of vehicles overseas.
The Dolphin maker delivered 557,090 battery-electric models in the three months to June, according to data released on Wednesday. Although this is lower than the same period last year, it will still probably be enough to beat Tesla. The U.S. maker is expected to report quarterly sales of about 396,500 vehicles next week, according to analyst estimates compiled by Bloomberg.
BYD overtook Tesla for the first time in the fourth quarter of 2024, and maintained a significant lead through 2025 as Elon Musk’s political activities and close ties with US President Donald Trump disappointed consumers, especially in Europe.
One automaker makes good cars, the other alienates its target market by teaming up with far-right racist parties around the world. I can’t imagine why Tesla sales are declining.
Second Gear: The US auto market is not so serious for Hyundai, Kia and Honda
2026 has largely been a bad year for car sales, but there is one exception to the rule: hybrids, which have gone gangbusters as fuel prices soar. Hyundai and Kia have ridden that wave to sales success, while Honda has found success the old-fashioned way. From automotive news: :
Hyundai and Kia posted greater U.S. sales growth in June due to strong hybrid and crossover volumes, while Honda Motor Co.’s volumes rose 17 percent due to strong CR-V and Accord demand.
Hyundai’s sales last month rose 11 percent to 77,555 and Kia’s rose 10 percent to 70,507, the companies reported July 1.
The companies reported gains last month driven by hybrid volumes, up 74 percent at Hyundai and 187 percent at Kia.
Hyundai’s two flagship crossovers, the Tucson and Palisade, posted double-digit gains of 20 percent or more, while Kia’s total crossover deliveries increased by 4 percent.
Kia said its retail sales also recorded double-digit growth last month with a 17 percent increase.
…
At American Honda, volumes in the Honda division rose 17 percent in June – up 49 percent in the Accord, 30 percent in the CR-V and 15 percent in the Civic – and 13 percent in Acura.
Honda said sales of electrified models, almost all of which are hybrids, rose 11 percent to 36,580.
The Korean triplets have been making some really great stuff lately, so it’s nice to see that impacting sales. American car buyers might be interested. I wish we could get them all to stop buying boring grayscale cars.
Third gear: Chinese buyers are abandoning Western brands
Ten years ago, Western automakers found themselves scrambling to gain a foothold in the lucrative Chinese market. Now, however, Chinese automakers are making better cars for less money – and Western automakers are losing out on domestic sales. From wall street journal: :
The mid-2010s were a golden age for Western carmakers in China, the world’s largest auto market. Brands like Buick and Volkswagen flourished as a new empowered class of buyers could not quickly access foreign cars.
But now that footprint is disappearing.
The market share of Volkswagen, China’s largest Western automaker, is expected to decline from 14.7% in 2015 to 9.7% in 2025, according to data from industry consulting firm AlixPartners. The German carmaker is now eyeing thousands of job cuts globally, due in part to its loss of ground in China. Volkswagen’s profit from its China operations this year jumped by $5 billion from an estimated $228 million to $684 million.
Today, Western car companies face stiff competition from the local companies they once taught to make cars. According to AlixPartners, the total market share of US brands fell from 12% in 2014 to 5% last year.
Chinese cars, which offer more features, better technology and more competitive pricing, make up two-thirds of new car sales in the country and have almost completely ousted foreign manufacturers from the electric and plug-in hybrid market. Even Tesla, which helped fuel China’s EV boom, has seen its market share decline there.
We are more alike than the average Chinese citizen than most people would probably like to admit. We all enjoy a pickup truck doing donuts, spectacular fireworks explosions, and a cheap locally made car that offers more features than the competition.
Fourth gear: Weapons makers are taking automotive chips to make missiles
The United States has destroyed much of our missile inventory, and the government is offering big money to any company that can help restock it. That means a fertile ground for startups looking to get into the arms business, and a wealth of new companies that are now grabbing share from automotive supply chains. From reuters: :
WASHINGTON, July 1 (Reuters) – Defense tech startups are reusing automotive chips and pipes used in fracking – copying production methods from drugmakers – in an effort to deliver weapons to the Pentagon faster and at a lower cost.
The growing demand for rocket motors used to power missiles and other weapons has prompted new thinking about supply chains. In search of bigger returns, Silicon Valley-style startups are now rivaling the defense companies that have long dominated the industry, drawn to the competition because of the need for speed of production, higher volumes and lower costs, according to ten industry executives, experts and US executives interviewed by Reuters.
Pentagon data shows the US has destroyed more than fifty thousand rockets, missiles and other projectiles powered by rocket motors since the Russian invasion of Ukraine in 2022 and the US attack on Iran. Washington is setting aside $53 billion to boost vital missile and rocket production and simplify procurement rules.
Personally, if I saw what our missiles were being used for, I wouldn’t be the least bit excited to assist in that level of mass destruction. However, that’s just me and my conscience. I understand that not everyone is so impressed by morality.
Inverted: Iconic?
The History Channel calls the Thunderbird “Ford Motor Company’s iconic sports car.” I think Ford just might have one or two more iconic sports cars. I may be wrong.
fuel up
Today’s average price for regular is the same as yesterday, and mid-range and premium are actually up a bit. is this the end? Is the sky falling? Will the sky rain anger on us?
On the Radio: Femtenil – ‘Girl Hell 1999’
The Supreme Court yesterday upheld a ban on trans children playing sports, upholding laws allowing child genital surveillance. Things are bad, y’all. Listen to some loud transsexual music about this.
