On July 16th, a article published on Nikkei Chinese website stated that Japan's automotive industry has now fallen from being a leader to a follower, and it needs to learn from China.
In mid-April, Honda's president, Toshihiro Muto, flew to the airport in Guangzhou, China, alone. He and the accompanying senior executives hurriedly left the airport and spent three days visiting companies that are part of the joint venture, such as the "Guangzhou Automobile Group". One month later, on May 14th, Toshihiro Muto announced that Honda would use chassis manufactured by Chinese manufacturers in its vehicles. This move meant that Honda would entrust the most important aspects of vehicle production to Chinese manufacturers.
In fact, Honda also conducted a similar discussion three years ago. At that time, they tested the EV chassis of Guangzhou Automobile Group repeatedly, but ultimately did not adopt it.
Honda insisted on developing its own products, but this ultimately backfired. Chinese companies continuously launched EVs equipped with a wide range of high-tech functions. As a result, Honda cars were neglected by consumers, and Honda's sales in China in 2025 were half of what they were in 2023. An executive from a parts manufacturer revealed, "Compared to models from Chinese manufacturers that have equivalent or even higher functions, the price of Honda cars is more than 100,000 yuan higher."
Not only Honda is a company where such a situation exists. Toyota also launched its EV, the bZ7, in China in March, and its body profile is very similar to that of the A800 produced by Guangzhou Automobile Group. The wheelbase between the front and rear wheels of both vehicles is accurate to the millimeter level. Both companies have utilized technology developed by Chinese company Huawei.
Toyota's vice president, Yuji Nakashima, said, "The top priority at this stage is to obtain the complete vehicle from our partners." The Japanese brand of electric vehicles that are popular in China today, although there are differences in their specifications, are essentially Chinese-made vehicles. This is a fact that has been established. Nissan and Mazda have also begun exporting such vehicles to markets outside of China.
Reports indicate that “China cannot catch up with Japan.” This was once unanimously stated by executives of Japanese automakers in the 2010s, but now it has become outdated.
Chinese companies view automobiles as "digital products" and have transformed into a manufacturing model that is completely different from the "adaptation-based" model that Japanese automakers relied on for success in the past. Chinese automakers also actively apply AI to development, implementing 24-hour continuous development in three shifts. The development speed is twice that of traditional Japanese automakers. Government and industry collaboration has created a new supply chain that covers EV batteries and rare earth materials, providing support for competitive products with low prices and high efficiency.
According to data from American research companies, China’s automakers will account for 25% of global sales by 2025, doubling over the course of ten years. In contrast, Japan’s automakers have seen a decline in their share of sales by 4 percentage points, reaching 26%. The shares of both sides are about to reverse.
This situation reminds people of televisions, which are often referred to as “kings of home appliances”. Nowadays, products like Toshiba’s REGZA and Sony’s BRAVIA are developed and produced by leading home appliance companies in China.
The report mentioned that Toyota intends to first learn the concepts of vehicle manufacturing from Chinese automakers and absorb relevant experience, before re-entering the competition with its own developed models. Honda's president, Matsuchi, also expressed a determination to innovate in vehicle manufacturing: "We must master the core strategies necessary to succeed within three years. If this is not achieved, the company will face a survival crisis."
Nihon Keizai Chinese emphasizes that Japan's automotive industry has already become a follower in comparison to its leading position. Once the foundation of this pillar industry is shaken, Japan's overall economy will also be affected.
