SHANGHAI: Japanese car manufacturers are increasingly embracing Chinese electric vehicle (EV) technologies to recover lost ground in the world’s largest car market, China.
At the Auto Shanghai motor show, Toyota Motor Corp revealed that its upcoming bZ7 electric vehicle will be equipped with an operating system developed by Chinese tech giant Huawei. The car is expected to launch within a year, with Toyota also announcing plans to appoint young Chinese engineers to lead model development in the country.
“To deliver cars people want in China, we need Chinese brains and hands involved in development,” said Li Hui, General Manager of Toyota China.
Japanese automakers have seen a sharp decline in Chinese sales: Toyota fell by 6.9%, Nissan by 12.2%, and Honda by 30.9% in 2024. Their combined market share in China dropped from 24.1% in 2020 to just 13.7% in 2024, according to the China Passenger Cars Association.
To counter this, Honda is collaborating with Chinese AI firm DeepSeek and co-developing driver assistance technology with another local startup. Meanwhile, Nissan plans to invest an additional 10 billion yuan in China-based R&D by 2026.
The shift marks a strategic pivot as Japanese automakers acknowledge the need for localised innovation to compete with leading Chinese EV brands like BYD.
— The Japan News/ANN
