Chinese media outlet Sina.com reported on the 25th an article titled 'Chinese Automakers Approaching a Turning Point for Japanese Market Entry.'

According to the article, in 2023, EV giant BYD became the first Chinese brand to fully enter Japan's passenger car market. From 2025, more Chinese brands are successively sending out signals of entering Japan, and 2026 could become the 'first year of mass entry for Chinese brands.'

Chinese cars have already spread to various parts of the world and are showing their presence even in distant South American markets, but Japan, right next door, has reportedly been a market difficult to penetrate until now.

Last year, Japan became the world's 4th largest market in new car sales, following China, the U.S., and India. The article highlighted this, stating that 'the Japanese market is very lucrative' and mentioning that 'high profits are also a major draw.' It conveyed that entry into the Japanese market means an opportunity for Chinese brands to break away from the image of 'cost-performance.'

Among these, the article introduced Chery Automobile in detail. It reported that 'Chery has partnered with major car accessories retailer Autobacs Seven and others to establish a joint venture. The plan is to set up its headquarters in Singapore and sell Chinese-made EVs in Japan.' It further stated, 'What's interesting is that it is not entering Japan as the 'Chery brand.' What will be introduced is a 'Japan-originated EV brand,' in other words, a model of 'Japanese brand, Chinese technology.' It introduced that 'EMT, a Japanese subsidiary, will be the operating entity, fully responsible for brand management, product development, and sales in Japan.' After conveying that the delivery of the first model is planned for 2027 and that future domestic production in Japan is also being considered, it pointed out that by utilizing Autobacs' existing network, sales and service bases can be established at low cost and in a short period.

According to the article, besides Chery, GAC, Zeekr, and Xiaomi Auto are also preparing to enter Japan.

The article discussed the background for Chinese companies' decision to enter Japan, stating that 'the decline in the international competitiveness of Japanese cars amid the trend of electrification has become an undeniable fact.' Furthermore, it stated that 'the deteriorating performance of Japanese finished vehicle manufacturers is merely the tip of the iceberg,' and conveyed that 'underneath the surface, the supply chain system that has supported Japan's automotive industry is entering a phase of structural collapse. In Japan, this system is called 'keiretsu.''

According to the article, the structure where automakers and suppliers have been multi-layeredly connected and have built a fortress-like relationship with each other has begun to loosen due to the wave of electrification, and this loosening has given Chinese manufacturers hope for entry. (Translated and Edited by Noya)