South Korean Media: Japanese Cars Suffer Comprehensive Sales Collapse in China!

On July 15, South Korea's NewsPim published an article stating that Japanese automakers, which had previously experienced rapid growth and held around one-quarter of the Chinese automotive market share, are now undergoing an unprecedented sales downturn.

According to investigations, in a market rapidly restructured around new-energy vehicles such as electric and hybrid cars, the once-solid position of Japanese automobiles in China is beginning to crumble.

In May this year, sales of major Japanese car brands in China plummeted across the board.

Nissan’s new vehicle sales in China reached only 37,782 units in May, a staggering 34.9% drop compared to the same period last year. This marks the second consecutive month with a decline exceeding 30%, following a 30.7% drop in April—indicating that sales conditions continue to deteriorate.

Nissan’s sales crisis in China is not isolated. The so-called “Big Three” Japanese automakers—Toyota and Honda—have also suffered severe sales slumps.

Toyota’s sales in China fell 31.7% year-on-year to 102,300 units in May, while Honda’s sales dropped by 48.7% to just 28,279 units.

This collective decline signals that the crisis facing Japanese automakers in China is not temporary but systemic in nature.

According to dealerships, today’s consumers head straight to showrooms searching for new-energy vehicles. As interest in domestic Chinese brands like BYD, XPeng, and NIO grows increasingly strong, Japanese cars seem to be fading from consumers’ awareness.

Experts analyze that the sales crisis faced by Japanese automakers in China is not a fleeting phenomenon caused by short-term economic fluctuations, but rather the result of long-standing structural and trend-driven declines.

According to data from China’s automotive industry, Japanese car market share in China peaked at a record 23.1% in 2020, but within just five years, by 2025, it had plummeted to 9.67%.

In contrast, during the same period, domestic Chinese brands centered on new-energy vehicles saw their market share surge to 69.5% by 2025, completely dominating the market.

Experts point out that although Japanese automakers achieved success in the market through building robust supply chains based on core technologies such as engines and transmissions, the decisive factor behind their current sales crisis is their slow response to paradigm shifts.

Analysis shows that especially as Japan enters a new era dominated by electrification and intelligence, approximately 70% of the technological assets embedded in its internal combustion engine supply chain cannot be applied to new-energy vehicles—a fact that has dealt a fatal blow. Consequently, Japanese automakers have lacked the flexibility needed to adapt to changes in the Chinese market.

The penetration rate of China’s new-energy vehicle market has already exceeded 50%, forming an undeniable trend. Domestic Chinese brands have swiftly captured market share thanks to core competencies in battery technology, autonomous driving, and competitive pricing, while Japanese brands like Nissan remain overly reliant on internal combustion engine models.

Original Source: toutiao.com/article/1870762967845896/

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