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.