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Asia Times
05-05-2025
- Automotive
- Asia Times
Japanese auto giants know they need China to survive
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 NEVs (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 21st 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.' MotorTrend wrote: 'Back in the '50s Americans used to go to GM's Motorama shows to get a glimpse of the future, gasping in awe at fully functional concept cars like the turbine-powered, titanium-bodied Firebird III and exhibits that showed autonomous driving technologies. Fast forward seven decades and the world comes to China to see the future arriving in real time.' Hoping to be a part of that future, Japanese automakers presented several new vehicles in Shanghai. Toyota launched an electric sedan, the bZ7, which was developed by Guangzhou Automobile Group (GAC), Guangzhou Toyota Motor and Toyota China Co's Intelligent ElectroMobility R&D Center. Significantly, the bZ7 is equipped with Huawei's HarmonyOS cockpit system. At the exhibit, Toyota's Li spoke about the company's 'One R&D system and Region Chief Engineer approach' to product development in China, which he said 'integrates resources from the Intelligent ElectroMobility R&D Center by Toyota (China), FAW Toyota, GAC Toyota and its joint venture with BYD into a unified platform, enhancing collaboration with local Chinese suppliers and technology firms…' Toyota also unveiled its latest Lexus ES luxury sedan, which comes in both hybrid and, for the first time, pure battery-powered versions. Honda presented the GAC Honda GT and Dongfeng Honda GT, the second set of 'Ye Series' electric vehicles developed specifically for China. These and other Ye Series cars will use AI technology from DeepSeek to enhance the in-vehicle experience. Nissan presented an electric sedan, the N7, made by Dongfeng Nissan, and a plug-in hybrid pickup, the Frontier Pro, designed and produced by affiliated Zhengzhou Nissan. The N7 is equipped with Momenta's Advanced Driver Assistance System (ADAS). Toyota and Honda also work with Momenta, a Chinese developer of assisted driving technologies that are also used by Volkswagen, Mercedes Benz and GM. Among Chinese automakers, Momenta works with BYD, GAC and SAIC. Momenta's shareholders include SAIC, Toyota and Daimler (Mercedes-Benz). Momenta founder and CEO Cao Xudong said at the exhibit that, 'We are the first Chinese company that has successfully deployed assisted driving technologies, such as highway and city navigation features, across multiple countries worldwide, including Germany, France, and Japan.' Momenta has offices in Stuttgart and Toyota City. Mazda unveiled the new EZ-60 electric SUV developed by Changan Mazda, its joint venture with Chongqing Changan Automobile Co. Sony attended the event for the first time, targeting the Chinese in-car entertainment market. German makers are taking a similar approach to the Japanese. On the evening of April 22, the day before the start of the show, Volkswagen announced what it calls 'the next generation of intelligent, fully connected vehicles (ICV).' The company said on its website that, 'Auto Shanghai 2025 marks the beginning of the Volkswagen Group's largest ICV-offensive in China to date. By 2027, the Group will launch more than 20 fully electric and electrified models (NEV) as part of a comprehensive product offensive. By 2030, the Group's brands will offer around 30 all-electric models.' German auto parts, software and services provider Bosch signed a technology cooperation agreement with Chinese automotive AI and ADAS developer Horizon Robotics. Bosch also announced its first order in China for in-vehicle AI computers for vehicle cockpits. Christopher Hartung, president of Bosch Cross-Domain Computing Solutions, told the Chinese press that 'We look forward to collaborating with outstanding partners like Horizon Robotics to jointly advance the global development of intelligent driving technologies.' Like their Japanese competitors, German automakers' share of the Chinese market is now about 13%, according to MarkLines. And like the Japanese, they are seeking ways to bounce back after losing share to local automakers. As the CEO of German auto parts and systems supplier ZF put it, 'If you stop investing here, you get left behind.' The Japanese and Germans should be able to maintain a significant share of China's auto market. The same cannot be said for the Koreans (Hyundai Motor, its affiliate Kia and premium brand Galaxy), whose share has dropped below 2%. Led by General Motors (GM), the Americans have about 9% of China's market, including through their local joint ventures. Tesla accounts for only 2% of total auto sales in China and about 5% of NEV sales. Follow this writer on X: @ScottFo83517667
Yomiuri Shimbun
28-04-2025
- Automotive
- Yomiuri Shimbun
Japanese Automakers to Incorporate Latest Chinese Technology into EVs; Using Chinese Talent for Chinese Market
The Yomiuri Shimbun Toyota Motor Corp.'s new EV model 'bZ7,' equipped with Huawei's operating system, is seen at Auto Shanghai in Shanghai on Thursday. BEIJING/SHANGHAI — Japanese automakers announced plans to introduce the latest Chinese technologies into their models at the Auto Shanghai motor show held in Shanghai, aiming to regain lost ground in China where electric vehicles (EVs) are rapidly becoming the norm. On Wednesday, Toyota Motor Corp. announced its new 'bZ7' electric vehicle (EV) will be equipped with an operating system from Chinese company Huawei. Toyota is developing the new model with an aim to launch it within a year. The automaker also unveiled a plan to appoint young Chinese people to chief engineer positions in charge of developing models for the Chinese market. 'To deliver cars people want in China, we need Chinese brains and hands involved in development,' said Li Hui, the general manager of Toyota China. In China, new car sales by major Japanese automakers declined in 2024 from the previous year, with Toyota decreasing by 6.9%, Nissan Motor Co. by 12.2% and Honda Motor Co. by 30.9%. According to the China Passenger Cars Association, the market share of Japanese automakers in China fell from 24.1% in 2020 to 13.7% in 2024. There are several factors for the decline, such as a delay in developing and launching new energy vehicles (NEVs) such as EVs and plug-in hybrid vehicles (PHVs) in China where competition is intense among major automakers like BYD and startup companies. Additionally, Chinese people have tended toward spending less due to economic downturn. 'It seems to me that Japanese automakers are not really serious about NEVs. Their vehicles lack innovation,' a 24-year-old self-employed man from Shanghai said while looking at Japanese vehicles on display. In order to regain lost ground in China, the world's largest car sales market, Toyota and other Japanese automakers are adopting strategies to utilize Chinese talent and technologies. Honda announced it would adopt the artificial intelligence (AI) technology of Chinese tech startup DeepSeek to develop models for China while it also unveiled a plan to codevelop driver assistance technology with another China-based startup company. They plan to develop technology capable of operating the vehicle in heavily congested areas of Chinese cities, according to Honda. Nissan announced it will make an additional research and development investment of 10 billion yuan (about ¥200 billion) in China by the end of 2026. 'We redefined our strategy for the Chinese market where a major shift toward NEVs is taking place,' Isao Sekiguchi, managing director of Dongfeng Nissan Passenger Vehicle Co., Nissan's joint venture in China, said to reporters, suggesting the company will speed up efforts to develop new models in China. The Yomiuri Shimbun Nissan Motor Co.'s PHV pickup truck 'Frontier Pro' at Auto Shanghai in Shanghai on Wednesday PHVs may be the key to success. According to the China Association of Automobile Manufacturers, new PHV sales including exports in 2024 increased by 83% from the previous year to 5.14 million units. The rate of increase exceeded that of EVs at 15%, while 7.71 million EVs were sold in 2024. EVs are now mainstream in urban areas, while people in regional areas apparently prefer PHVs because they use both gasoline and electricity and pose less concern about travel range. Nissan will launch its first PHV pickup truck 'Frontier Pro' before the end of this year. Mazda Motor Corp. announced that its new model 'EZ-60' will be available in both EV and PHV models. 'China is the world's most advanced electrification and smartization market. It is important to focus on partnering with Chinese companies in order to respond to market demand,' a senior official at a Japanese automaker said.
Nikkei Asia
25-04-2025
- Automotive
- Nikkei Asia
Toyota picks Huawei, Honda uses DeepSeek for China EVs
SHANGHAI/TOKYO -- Toyota Motor, Nissan Motor and Honda Motor are partnering with Chinese technology companies to design smarter electric vehicles as evolving standards in the market make it difficult for them to compete on their own. "To deliver cars that people want in China, we need Chinese brains and hands involved in development," said Li Hui, general manager of Toyota China, at the ongoing Auto Shanghai trade show.
Japan Forward
24-04-2025
- Automotive
- Japan Forward
Remade in China? Japan's Auto Industry at a Crossroads
CAPTION: A Lexus electric vehicle on display at the Shanghai Motor Show. April 23, Shanghai, China (©Reuters) The 21st Shanghai International Automobile Industry Exhibition opened on April 23. It showcases the rapid rise of Chinese automakers, driven by strong government support for electric vehicles (EVs) and other new energy technologies. Amid mounting challenges, Japanese automakers like Toyota are staging a comeback by doubling down on localization in China. With added uncertainty from policies such as the United States' auto tariffs under Donald Trump's administration, the outcome of the competition with Chinese manufacturers remains unclear. "China is now a leading market in advanced technologies such as electrification and intelligent systems," emphasized Li Hui, General Manager of Toyota China, at a local press event on April 23. EV adoption and artificial intelligence (AI) utilization have advanced in China, and domestic manufacturers continue to gain momentum. According to the China Association of Automobile Manufacturers (CAAM), the share of Chinese brands in passenger car sales, which hovered around 40% until around 2020, has now surged to nearly 70%. In contrast, foreign manufacturers are struggling. In 2025, South Korea's Hyundai and Kia opted not to participate in the show. Chinese media reported this as a "strategic decision" to prioritize the US market over China, where sales have been sluggish. The logo of South Korea's Hyundai Motor Company displayed at a car dealership in Miami, United States (Getty/Kyodo). Japanese carmakers are scrambling to overhaul their strategies. In February, Toyota announced it would build a new EV factory for its luxury brand Lexus in Shanghai, with production expected to start in 2027. The goal is to quickly deliver EVs tailored to local demand. Honda also opened dedicated EV factories in Wuhan (Hubei Province) and Guangzhou (Guangdong Province) in 2024. Chinese automakers are also emerging as formidable rivals in overseas markets. According to the CAAM, China exported 5.85 million vehicles in 2024, a dramatic rise from 1.02 million in 2019. BYD, China's largest EV maker, built a new factory in Thailand in 2024 and is expanding its overseas production and sales network. The company aims to more than double its overseas sales this year to over 800,000 units. The intensifying tariff war between the US and China is another critical factor in the Chinese market. Ford Motor Company has reportedly halted exports of vehicles made in the US to China, while Tesla has stopped accepting new orders in China for some models produced in its US factory. So far, however, the impact on Chinese automakers appears limited. Chinese media report that only about 116,000 Chinese-made vehicles were exported to the US in 2024, less than 2% of total exports. Chinese firms are focusing on markets outside the US, such as Europe, which means American manufacturers could be more affected in terms of exports to China. Still, with the US government reportedly pressing its trade partners to restrict trade with China, Chinese manufacturers have little reason for optimism. (Read the article in Japanese .) Author: Shohei Mitsuka, The Sankei Shimbun
Kyodo News
23-04-2025
- Automotive
- Kyodo News
Japan carmakers aim to bounce back with new EVs at Shanghai show
KYODO NEWS - 10 minutes ago - 16:37 | World, All Major Japanese automakers unveiled their latest electric vehicle models at the Shanghai motor show on Wednesday, hoping to bounce back in the Chinese market that has seen cutthroat competition with local carmakers amid a rapid shift toward new energy vehicles. About 1,000 companies including auto parts makers are participating in the biennial show through May 2, one of the world's biggest auto exhibitions, at a time when a tit-for-tat tariff war between the United States and China has cast a shadow over the car industry. Japanese manufacturers stressed their policy of accelerating localization in China, the world's largest auto market, through collaboration with Chinese partners and the adoption of locally developed technologies to better meet customer needs. Toyota Motor Corp. is displaying its new bZ7 EV model for the first time, while Honda Motor Co. is exhibiting the latest version of its Ye EV series exclusively launched for the Chinese market. Li Hui, general manager of Toyota China, told a press conference the new battery EV sedan, which the company aims to commercialize within a year, will be equipped for the first time with an operating system developed by China's telecom giant Huawei Technologies Co. "We have realized usefulness in cars similar to that of smartphones" through the adoption of the Huawei technology for the driving seat, Li said. Toyota also unveiled a new EV model for the upscale Lexus brand. In February, the manufacturer said it will build a new factory in Shanghai to produce Lexus EVs and batteries from 2027 or later. Masayuki Igarashi, chief of Honda's China operations, said in presenting the new GT model of the Ye series that the company will adopt artificial intelligence technologies of Chinese startup DeepSeek for all future Ye vehicles. Referring to cutting-edge technologies in the areas of electrification and intelligence in the Chinese auto market, he added Honda will "incorporate the strength of local companies" and further develop its own products. Nissan Motor Co. revealed its new plug-in hybrid pickup truck Frontier Pro, which the company plans to put on sale in China later this year and export to some other markets within a year. China's BYD Co. and some other local automakers are exhibiting cars equipped with technologies such as AI-powered driver-assistance systems in a heated race to develop smart and intelligent vehicles. In 2024, new energy vehicles including EVs and plug-in hybrids accounted for around 45 percent of new car sales in China. China slapped additional tariffs of 125 percent on all American imports in retaliation for 145 percent extra duties imposed on all U.S. imports of Chinese goods. Following the escalation of the trade war, Ford Motor Co. has halted shipments to China of cars made in the United States, while Tesla Inc. has stopped accepting new orders in China for vehicles made in America, according to media reports. Related coverage: Honda to move part of domestic production to U.S. to fend off tariffs Nissan mulls moving some production to U.S. to soften tariff impact Japan to make vehicle gas pedal safety devices mandatory in 2028
