Japanese car manufacturers are facing mounting challenges at the 23rd Guangzhou International Automobile Exhibition, which opened this week, as domestic Chinese brands and global competitors intensify pressure on their market share. Industry analysts note this year's event highlights a pivotal moment for Japan's auto sector, which previously dominated China's premium vehicle segment.
Declining sales figures through 2025 reveal a 12% year-on-year drop for major Japanese brands, attributed to rising Chinese EV innovation and shifting consumer preferences. The situation has been compounded by recent U.S. tariff increases impacting export strategies, forcing companies like Toyota and Honda to reconsider production localization plans.
Political sensitivities have added complexity to commercial decisions following remarks by Japanese Prime Minister Sanae Takaichi regarding cross-strait relations. While automakers maintain operational neutrality, industry insiders suggest the comments have heightened scrutiny of Japanese businesses in the Chinese mainland market.
"This isn't just about tariffs or technology," said automotive analyst Li Wei from Shanghai's Fudan University. "There's a perfect storm of economic nationalism, supply chain realignments, and geopolitical factors reshaping Asia's automotive landscape in 2025."
