Japan’s carmakers vow closer ties to regain ground lost to China
To survive, Japanese manufacturers are pledging cooperation in areas like AI and EVs, while also navigating trade tensions and internal restructuring
Japan’s biggest carmakers have pledged cooperation in tech-focused areas to survive in the rapidly evolving global industry, just as two of its largest car brands begin negotiating a deal that would effectively split the country’s industry in two.
Over the next decade, manufacturers will need to pool resources and collaborate in areas like artificial intelligence and electric vehicles to catch up with the technologically sophisticated cars available in other markets, the Japan Automobile Manufacturers Association (JAMA) said in its road map for 2035.
The call to action comes at a pivotal time for Japan’s industry. Honda has just announced a deal that would see it fold a flailing Nissan into its business in a tie-up that would pit the duo against Toyota and its partnerships with Mazda, Subaru and Suzuki.
While that deal would carve up the domestic sector, Japan’s carmakers – famous for their efficient and reliable models – are united in their struggle to regain ground they’ve lost to the flashy offerings that have turned China into a global EV superpower.
“Japan’s car industry was once a global leader, but new technology and geopolitical instability have weakened its competitive advantage,” JAMA said in a statement on Tuesday.
In China itself, the world’s largest car market, Japanese marques are fighting for survival. But a wave of Chinese EVs are now eking out a growing share of Southeast Asia – long considered a stronghold for Japan’s legacy brands.
