Japanese carmakers eye innovation, India boost to overcome US, China speed bump
Toyota, Suzuki, Nissan, Honda, and other Japanese players unveil aggressive expansion plans, ranging from smaller EVs to reinventing iconic old brands, during the Japan Mobility Show.
TOKYO : Japanese carmakers are pinning their hopes on technology and new launches to help them counter the expanding global footprint of Chinese rivals, as well as shortages of rare-earth magnets and chips, and US tariffs—with India keeping their growth engines humming.
Toyota Motor Corp., Suzuki Motor Corp., Nissan Motor Co. Ltd, Honda Motor Co. Ltd, and other Japanese players unveiled their aggressive expansion plans—ranging from introducing new EV technology in smaller cars to reinventing iconic old brands—during the Japan Mobility Show 2025.
The auto exhibition was held in Tokyo against the backdrop of ongoing negotiations between the US and China, which have been locked in a prolonged trade war, with the ripple effects of the conflict being felt across the Japanese and Indian auto industries.
The rejuvenation push
Akio Toyoda, chairman of the world's largest automaker Toyota, offered a rare public reflection on Japan’s waning global influence to Chinese rivals such as EV maker BYD Co. Ltd, which has quickly expanded its global market share.
BYD’s international sales surged 72% to 417,204 units in 2024, accounting for 10% of its total sales. The company now aims to double that figure, with a sharper focus on Southeast Asia and Europe.
“Japan as a nation seems to have lost some of its energy and dynamism, along with our presence in the world," he said in his address to hundreds of international and Japanese delegates on 29 October.
“The ‘Japan as No.1’ era is behind us, and we are now in what has come to be known as ‘the lost 30 years’," he added.
His remarks hit home as BYD showcased its first Kei car, the smallest category of Japanese expressway-legal motor vehicle, to disrupt their home market. Kei cars have long been the territory of Japanese carmakers, accounting for more than 30% of Japan's car sales.
With the Toyota chairman calling upon the industry to rejuvenate itself, the carmaker announced its new luxury brand, Century, hoping to lead the premium domestic and global markets.
“Century is not just another brand within Toyota. We want to cultivate it as a brand that brings the spirit of Japan―the pride of Japan―out into the world," Toyoda said.
While Toyoda did not clearly outline the challenges the Japanese auto industry is facing, Suzuki chair Toshihiro Suzuki expressed concerns over the growing Chinese challenge.
“Chinese players are lowering their prices. The way they are growing, the future growth for them will be difficult," Suzuki said, adding that the company doesn't want to engage in competition with Chinese players internationally.
It is also moving to catch up on EV technology after launching its first EV, e-Vitara, which it has started exporting to Europe. At the show, it unveiled an electric version of its kei car dubbed Vision e-Sky.
Meanwhile, Nissan announced a refresh strategy—Re:Nissan— to regain its mojo amid mounting losses and layoffs. On 13 May. it announced that it would cut 11,000 jobs and shut seven factories to survive falling sales in China and struggles in the US market.
Its chief executive, Ivan Espinosa, said during the same-day press briefing that the company is backing several refreshes of its core models—such as Leaf EV, Ariya, along with the launch of its Patrol model in the Japanese market from 2027—to reinvigorate sales in key markets.
This comes as the company expects a $1.8 billion loss for 2025-26, primarily due to the impact of US tariffs.
Honda also suffered steep losses, nearly halving its June-quarter profit to 244.17 billion yen. The management attributed the reversals to US tariffs, as America is one of its largest markets.
However, it raised its bets on new products in the clean-fuel space, introducing Honda 0 Series cars. It showcased two electric sports utility vehicles (SUVs) and one sedan. The first of these cars is scheduled to be launched in 2027.
“Although the market environment surrounding electrification continues to be uncertain, Honda believes that, in the long run, the shift toward EVs will continue. Therefore, Honda is steadily preparing to deliver attractive EV models in the upcoming electrified era," said Toshihiro Mibe, its president, in his address.
A November 2024 Bloomberg analysis showed that the Japanese carmakers have lost territory in many of the markets since 2019 to the Chinese competition. Their steepest reversal was recorded in China, Singapore, Thailand, Malaysia, and Indonesia between 2019 and 2024.
In China, BYD gained 23% while the Japanese carmakers, including Honda, Nissan, and Toyota, lost 0.5% to 4% market share. In Singapore and Thailand, their combined market share dropped from 50% to 35%.
The India play
For most Japanese carmakers, India remains a safe haven. While Chinese rivals ramp up exports to Europe, the Indian market—nearly half of which is served by the Japanese companies—remains largely insulated from Chinese competition.
BYD, for instance, sold just 3,401 cars in the country in 2024-25, capturing a mere 0.08% market share. For comparison, Maruti Suzuki controls 40% of the market, followed by Toyota's 6%, Honda's 1.5%, and Nissan's 0.6% share.
Buoyed by a goods and services tax (GST) rate cut and robust festive season demand, India’s auto industry expects a 5% growth in 2025-26. In September alone, car sales rose 4.4% year-on-year to 372,458 units, according to the Society of Indian Automobile Manufacturers.
“Our management has decided to focus on India among the three key markets for Honda's future growth, alongside the US and Japan," Takashi Nakajima, president and chief executive of Honda Cars India, said on the sidelines of the auto show.
The company is planning to introduce 10 new models in the country, which will include seven SUVs by 2030.
T. Suzuki also termed India Suzuki's “most critical market". While the Suzuki chair acknowledged the intense competition with domestic carmakers such as Tata Motors Ltd and Mahindra & Mahindra Ltd, and Korean giant Hyundai Motor Co., he said Maruti Suzuki will introduce eight new SUVs by 2030-31.
Toyota could also join Suzuki and Honda in a product blitz, with Reuters reporting that it plans to launch 15 new cars and model upgrades by the end of this decade.
Highlighting the importance of collaboration with India, T. Suzuki concluded the press briefing with a note on packets of Indian curries, which the company has begun producing to sell in Japan.
“We have sold more than 100,000 of these," he noted, suggesting that the effort was a symbol of Japanese firms looking to work closely with Indian companies and talent.
The writer is in Tokyo at the invitation of Maruti Suzuki.
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