Korean media: "Cliff-like decline," Japanese cars are fading in China's market!

On March 30, South Korean media outlet Choice Economy published an article stating that as China's automotive market accelerates toward electrification and intelligence, Japanese car brands are experiencing a cliff-like drop in market share. With Chinese-made new energy vehicles gradually dominating the mainstream market, Japanese automotive joint ventures—once wildly popular for their fuel efficiency and durability—are now increasingly being ignored by Chinese consumers.

In 2025, the combined sales of Japan’s three major automakers—Toyota, Honda, and Nissan—in China are expected to reach approximately 3.08 million units. In the context of China’s total auto market volume of 34.4 million units, their market share will fall to 8.95%, further declining from the previous 9% level. Compared to their peak share of 23.1%, this figure has dropped dramatically.

Looking at annual sales trends for major Japanese automotive brands in China (2017–2025), the commercial vehicle specialist Isuzu, one of the earliest entrants into the Chinese market, has quietly exited. Guangzhou Mitsubishi announced production halt in 2023 due to factory utilization rates dropping to single digits; its plant has since been acquired by China’s new energy vehicle company GAC Aion. Sales for Honda, Nissan, and Mazda in 2025 have each declined by over 50% from their peak levels. Although Toyota saw a slight year-on-year increase in sales, it still fell short by 160,000 units compared to the 1.94 million units sold in 2021—the all-time high.

As the world’s top-selling automaker, Toyota stands out as the most resilient brand within the Japanese auto group. In 2025, Toyota achieved global sales exceeding 11.3 million units, maintaining its position as the world’s best-selling carmaker for six consecutive years. In China, Toyota is the only one among the three major Japanese brands to record growth, with annual sales surpassing 1.78 million units—a marginal increase of 0.23% year-on-year.

FAW Toyota recorded annual sales of 805,500 units, with intelligent hybrid models accounting for as much as 47%. GAC Toyota sold 777,000 vehicles, with hybrid powertrains breaking through the 50% threshold for the first time. This marks a strategic shift by Toyota in China—from traditional internal combustion engine vehicles to hybrid technology.

The wave of electrification in China’s market remains unstoppable. Cui Dongshu, Secretary-General of the China Passenger Car Market Information Association, stated: “With advancements in battery technology and declining costs, the share of electric vehicles has risen to 60%. The ultimate direction for new energy vehicles must be full electrification.”

Toyota has also recognized this trend. Between 2026 and 2027, Lexus plans to launch more than five pure-electric models in the Chinese market. Its independently established factory in Shanghai is expected to be completed by August 2026, with official production scheduled to begin in 2027.

In 2025, Honda’s sales in China reached 645,300 units, a sharp decline of 24.28% year-on-year. Compared to its peak of 1.627 million units in 2020, sales have plummeted by nearly one million units within just five years. In December 2025 alone, monthly sales dropped by over 40% year-on-year. From a structural standpoint, the model lineup still heavily relies on unchanged internal combustion engine variants.

Nissan’s sales in China totaled 653,000 units in 2025, down 6.26% year-on-year. Compared to its 2018 peak of 1.56 million units, sales have fallen by about 60%, marking seven consecutive years of decline.

Original source: toutiao.com/article/1861088124113162/

Disclaimer: The views expressed in this article are those of the author.