Japanese Auto Giants Know They Need China To Survive

2025-05-05 12:01:15

(MENAFN- Asia Times) Japanese automakers are attempting to make a comeback in China with their local joint venture partners and Chinese suppliers of smart cockpit and self-driving technology.

With their combined market share in China down from 24.1% in 2020 to 13.7% in 2024, according to the China Passenger Cars Association, this is perhaps their last chance.

As General Manager Li Hui of Toyota China put it at the Auto Shanghai 2025 trade show,“To deliver cars people want in China, we need Chinese brains and hands involved in development.” Appointed earlier this year, Li is the first Chinese general manager of Toyota China.

Even if US President Donald Trump's tariffs were not disrupting their business in North America, the Japanese could not afford to be driven out of the world's largest and most dynamic auto market.

More than 31 million new vehicles were sold in China in 2024, according to the Chinese Association of Automobile Manufacturers, of which nearly 13 million were NEV s (New Energy Vehicles, including battery-powered, hybrid and fuel cell vehicles). In comparison, nearly 16 million new vehicles were sold in the US , of which about 3.2 million were NEVs .

Auto Shanghai 2025 , the 21^st iteration of the exhibition, was held from April 23 to May 2. Organized by the Council for the Promotion of International Trade, Shanghai, and the China Association of Automobile Manufacturers, the event reportedly attracted nearly 1,000 auto, auto parts and other auto supply chain companies from 26 countries and regions.

The exhibition, where 1,366 vehicles were on display, of which 70% were NEVs, drew one million visitors. Car and Driver magazine noted that“While auto shows have slowly been withering away in the United States, with fewer and fewer in-person reveals each year, the car show is thriving in China.”

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