China bans yokes, mandates buttons

A seismic shift is hitting car interiors: after fatal accidents, China just banned pop-out door handles, yoke steering wheels, and fully digital controls, demanding old-school mechanical backups by 2027. Because China’s the world’s biggest electric vehicle market, these rules will likely ripple worldwide, forcing brands that went all-in on sleek, screen-only cockpits to retool at real cost. That means higher bills for physical switches and latches and a need to rethink how software and hardware balance inside tomorrow’s cars.

But here’s the catch—while automakers scramble to redesign, they’re also wrestling with trade wars and global energy shocks. Soaring tariffs are squeezing profits: Volkswagen alone faces nearly $3 billion in U.S. duties this year, and Toyota projects even higher hits. Add in Middle East supply disruptions and spiking oil prices, and supply chain headaches multiply. Companies are eyeing new North American plants, but shifting production isn’t quick or cheap. For now, fleet and hybrid sales are propping up numbers as both consumers and manufacturers wrestle with rising costs.

All this is shifting value to tech giants like Qualcomm and Broadcom, who are grabbing an ever-larger slice of the car as demand for chips and smart systems rises. Featuring insights from Automotive News, Cox Automotive, and industry leaders at VW and Toyota.

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