Japanese Big Three's China Sales Diverge: Toyota Halts Decline with Slight Gain, Nissan and Honda Keep Sliding

In 2025, the sales performance of Japan’s three major automakers in China showed clear divergence. Toyota sold 1.78 million vehicles, achieving a slight year-on-year increase of 0.23%—marking its first stabilization since 2022 and surpassing the combined sales of Nissan and Honda. Nissan sold approximately 653,000 units, marking its seventh consecutive annual decline. Honda’s sales plummeted by 24.28% year-on-year to just 645,300 units, hitting a five-year low. Collectively, Japanese brands’ market share in China has shrunk from a peak of 25% to less than 10%. Analysts note that Japanese automakers are grappling with challenges such as lagging intelligent features and outdated dealership models, as Chinese consumers increasingly prioritize smart driving experiences over the traditional “reliability” reputation. Toyota has accelerated localization by establishing a “Chief Engineer for China” system, with its hybrid and new energy vehicles performing strongly. Nissan is testing intelligent cockpit technologies through its partnership with Huawei. Honda, meanwhile, struggles due to its slow electric transition and insufficient product competitiveness. The year 2026 is widely seen as a make-or-break moment for Japanese automakers in China.