Daimler Truck's 2026 margin guidance disappointed analysts, with the German manufacturer targeting an industrial EBIT margin of 6-8% versus consensus estimates of 7.7%. Bernstein analysts noted the guidance implies a 7% shortfall on the midpoint, citing tariff costs as a key factor. The North America segment and Mercedes-Benz Trucks both fall within the same range, despite North America's 7% margin exit rate in Q4.

BMW delivered stronger news with projected free cash flow exceeding 4.5 billion euros in 2026, up from 3.24 billion euros in 2025. The automaker guided for a 4-6% auto margin in 2026 after reporting a fourth-quarter margin below 4%. JPMorgan analysts highlighted BMW's ongoing manufacturing improvements and momentum stabilization in China, driven by its Neue Klasse models and continued growth in battery-electric vehicles.

Asian economies face heightened energy price risks, with Thailand, Korea, and India most vulnerable to disruptions in the Strait of Hormuz. Nomura analysts noted the region's position as a net energy importer creates double exposure to rising costs. Despite these challenges, Asia maintains strong fundamentals including current account surpluses, substantial FX reserves, and robust AI-driven tech exports that provide economic buffers.