Japanese Car Sales in China Halved Over Five Years; Toyota Rebounds, Nissan and Honda Struggle to Transform

In 2025, Japanese automakers saw their market share in China drop to approximately 12% from 24% in 2020—a sharp halving of their presence. Among them, Toyota demonstrated relatively stable performance, with annual sales inching up by 0.2% to 1.78 million units, ending a three-year consecutive decline. This turnaround was driven by decentralizing R&D authority to its Chinese operations and launching localized models such as the GAC Toyota bZ3X. In contrast, Nissan marked its seventh straight year of declining sales, delivering 653,000 vehicles in 2025—a 6.26% year-over-year decrease—while Honda suffered a steep plunge, selling only 645,300 units, down sharply by 24.28% year-on-year. Faced with these challenges, all three automakers have begun adjusting their strategies: Toyota is deepening its localized R&D efforts; Nissan is strengthening collaboration with Chinese supply chains to accelerate product development; and Honda is prioritizing internal restructuring before advancing its transformation. Although these measures have yet to significantly boost sales, they have already helped stabilize the downward trend. Looking ahead, if Japanese brands can better align with Chinese market demands, they may stand a chance of holding onto their core market position.