Chinese Automakers Accelerate Push into Japan as Chery Partners Local Firm on EVs

Chinese automaker Chery recently announced its entry into the Japanese market, forming a joint venture with Autobacs, Japan's largest automotive aftermarket retail chain, and other partners to sell China-made battery electric vehicles (BEVs) in Japan. Chery will supply the vehicle platforms, core electrified components (including batteries, motors, and power electronics), and intelligent driving technologies, while Autobacs will leverage its network of 1,200 stores across Japan to handle sales, after-sales service, and brand promotion. Chery’s operations in Japan will be managed by EMT, its wholly owned subsidiary based in Yokohama, which will oversee brand management, product development, and local sales. The company plans to launch its first BEV model in Japan in 2027, targeting the small or compact segment, and aims to introduce a total of four models by 2029 to cover major segments of the Japanese market. The partners are also exploring the possibility of establishing local production in Japan after 2030. This move is part of a broader trend of Chinese brands collectively entering the Japanese market. Data shows that the combined global sales of Japan’s top eight automakers reached 24.34 million units in fiscal year 2025, down 1.3% year-over-year—marking the second consecutive year of decline. Meanwhile, Japan’s automotive supply chain is undergoing structural adjustments, with Chinese suppliers increasingly demonstrating advantages in cost efficiency, responsiveness, and quality, thereby weakening Japanese automakers’ reliance on their traditional domestic component supply base.