On May 28, 2026, Chinese media outlet Dahe Daily reported that in 2025, the global cumulative sales of Japanese car manufacturers fell from the top position for the first time in 25 years, and Chinese car manufacturers became the world's No. 1.

The article reported that in the financial results for the March 2026 fiscal year, Toyota's net profit decreased by approximately 20%, and Honda fell into a full-year deficit for the first time since its listing in 1957. It also reported that Nissan recorded a massive deficit totaling 1.2 trillion yen for two consecutive terms, indicating that Japan's three major automakers have collectively lost momentum.

Furthermore, it was pointed out that tariff pressure in the highly profitable US market is a factor in the slowdown, significantly pushing down manufacturers' operating profits. For Toyota alone, operating profit losses due to tariffs in FY2025 amounted to 1.38 trillion yen, and its North American business recorded its first operating deficit since 2008. The article also mentioned that President Kenta Kon said, "Amid drastic changes in the external environment, the declining trend in profitability per vehicle has not been stemmed."

In addition, the article explained that prices of component materials such as steel and aluminum were affected by rising crude oil prices, and logistics risks in the Middle East also impacted the export of finished vehicles.

The article mentioned that the share of Japanese cars in the Chinese market in 2025 significantly decreased from 23.1% in 2020 to 9.8%. Meanwhile, the penetration rate of new energy vehicles in China exceeded 60% for the first time in history in April 2026. The "good fuel economy" that Japanese cars once boasted lost its advantage amid the wave of electrification, and the shortcomings of slow product improvement and lack of innovation in Japanese cars have been highlighted against rapidly evolving smart cockpits and autonomous driving technologies, the article assessed.

Furthermore, it also mentioned that Japanese car sales in the six major ASEAN countries in 2025 decreased by 22% compared to 2019, and conveyed the industry's observation that Japanese car manufacturers are facing a predicament similar to what Nokia (a telecommunications equipment manufacturer) once faced.

The article introduced that Nissan plans to launch 10 new energy vehicle models in China by the summer of 2027, Toyota allocated 1.6 trillion yen for R&D in FY2026 for core areas such as autonomous driving and new energy vehicles, and Honda also plans to invest 800 billion yen in future electric vehicle (EV) development. It concluded by saying, "Although each company is making desperate efforts to catch up, there is not much time left for a market reversal."