On June 14, 2026, Chinese media outlet Guancha.cn published a self-media article stating that Japanese automakers recorded their worst-ever performance in their fiscal year ending March 2026 financial results and "this time, they really won't be able to hold on."

The article published was from the Chinese self-media "Yuanchuan Technology Review." The article stated that Japanese automakers collectively reported their worst-ever performance in the fiscal year ending March 2026, with industry leader Toyota's net profit decreasing by approximately 915.0 billion yen year-on-year to 3.848 trillion yen, Honda incurred a net loss of 423.9 billion yen, and Nissan recorded a loss for the second consecutive year.

Furthermore, the total net profit forecast for the fiscal year ending March 2027 announced by Japan's seven major automakers is limited to approximately 3.9 trillion yen, a severe situation with a decrease of approximately 3.58 trillion yen compared to the peak fiscal year ending March 2024.

It also pointed out that the share of Japanese cars in the Chinese market has shrunk from 24.1% in 2020 to 13.8% in January-March this year. While the situation in the Chinese market is merely a "scratch" for Toyota, only affecting its profits, Honda and Nissan have seen their sales halve and suffered a major blow.

The article stated that Chinese automakers are launching aggressive offensives in overseas markets, directly taking market share from Japanese cars in Southeast Asian markets, where Japanese cars have long maintained dominance. Citing Bloomberg statistics, it reported that the share of Japanese cars decreased by 6 percentage points in Indonesia and 12 percentage points in Thailand between 2019 and 2024.

Furthermore, it explained that in Indonesia, Toyota's sales decreased from 336,000 units in 2023 to 250,000 units in 2025, while Chinese electric vehicle (EV) giant BYD's sales rapidly grew from 0 units to 46,000 units. In Thailand, too, as Toyota's sales decreased from 276,000 units to 230,000 units, BYD's sales increased from 29,000 units to 40,000 units.

In addition, it stated that the survival space for Japanese cars is being pressured by the growth of Chinese manufacturers in markets such as Brazil, the UK, and Australia.

The article introduced that Japanese cars are still thriving in the hybrid vehicle markets of the US and EU, with their share of hybrid cars in the US reaching 15.3% in March this year and 38.6% in the EU from January to March this year. In this situation, Japanese automakers' choices are consistent, and they are making realistic business decisions to downsize their EV business and focus on developing gasoline-powered and hybrid cars, their traditional strengths.

Furthermore, it coolly analyzed that the decisions made by Japanese manufacturers are "nothing more than temporary" in the face of the rapid shift to EVs in emerging markets. Considering the current situation where the survival strategy of "offsetting struggles in China with global markets" is collapsing, as it once was, it concludes with a pessimistic summary: "For Japanese cars, a situation where they truly cannot hold on is approaching this time." (Edited and Translated by Kawajiri)