UK Media: Japan's Automotive Industry Faces 'Existential Crisis'
On April 28, COURRIER JAPAN reported that the British magazine The Economist stated: "Japan's automotive industry is facing an 'existential crisis'."
As Honda and Nissan struggle, it is necessary to analyze why Japan’s once-dominant global auto industry has stagnated—and consider what conditions are required for its continued survival.
Honda recently announced that, by the end of its fiscal year ending March 2026, its consolidated net loss will reach 69 billion yen—its first since 1957.
President Toshiro Mitsuhiro appeared before reporters with a sorrowful expression, stating he would take personal responsibility and voluntarily return 30% of his salary and that of his deputy president.
During a subsequent industry conference week, Mitsuhiro issued a stern warning: "The Japanese automotive industry itself is on the brink of survival; Honda is not the only company in trouble."
This is no exaggeration. Once the world’s sixth-largest car seller by volume, Nissan is now undergoing sweeping structural reforms and plans to close seven factories by 2028. The 25% tariff imposed by the United States on imported vehicles is also exerting pressure on Japanese automakers’ revenues.
But the biggest blow comes from the rapid rise of Chinese automakers.
In 2019, Japanese cars accounted for 31% of global sales, but by 2025 this had dropped to 26%. Sales have particularly declined in the Asian market.
Since 2019, Japanese car sales in China have fallen by one-third. Even in Southeast Asia—the region long considered the stronghold of Japanese automobiles—market share fell to 57% in 2025, down significantly from 68% two years prior.
Original source: toutiao.com/article/1863727926939659/
Disclaimer: The views expressed in this article are those of the author alone.