In the world of gasoline cars, Japan’s automakers are king. Toyota has held the title of the world’s No. 1 car company for the past three years, while Honda and Nissan remain global bestsellers.
But as the transition to electric vehicles accelerates, the Japanese giants are facing stiffer competition from EV upstarts like Tesla and BYD. Nowhere is the threat more apparent than in China — the world’s largest auto market and where 1 in 4 cars sold last year were electric. EV sales are forecast to climb to 9 million in 2023, reaching market penetration of 35%.
Honda and Nissan sales in China have been falling for at least two years, while Toyota’s sales last year declined for the first time in a decade. Although chip shortages, COVID-19 lockdowns and the related supply chain snarls played their part, a growing issue is the lack of attractive electric-car offerings from the trio.