China slows down as Japanese carmakers lose ground

The slowdown in China’s car market is hitting major Japanese manufacturers hard. Toyota, Honda and Nissan are facing weaker demand and increasingly aggressive competition from domestic brands.

The main factor is the rapid growth of Chinese automakers, which are strong in electric vehicles, onboard technology and competitive pricing. China remains strategic for Japanese groups, but protecting market share and profitability will require new models and a faster shift toward electrification.