Chinese Automakers Overtake Japan to Top Global Sales; Japanese Giants Urged to Standardize Parts

Global new vehicle sales data for 2025 show that Chinese automakers have collectively surpassed their Japanese counterparts for the first time, securing the top global position with approximately 27 million units sold—a 10% year-over-year increase—ending Japan’s reign as the world’s largest automotive producer since 2000. During the same period, Japanese automakers saw their sales slightly decline to around 25 million units. Among the world’s top 20 automakers by sales volume, six are Chinese companies, outnumbering Japan’s five. In May of this year, five Chinese automakers—BYD, Geely, SAIC, Chery, and Leapmotor—achieved a combined market share of 12.0% in Europe, surpassing the 11.3% held by six Japanese brands: Toyota, Honda, Nissan, Suzuki, Mazda, and Mitsubishi. In response to this shift, Akio Toyoda, Chairman of the Japan Automobile Manufacturers Association (JAMA) and former CEO of Toyota, recently urged Japan’s seven major passenger car manufacturers—Toyota, Honda, Nissan, Suzuki, Mazda, Subaru, and Mitsubishi—to reduce internal competition and enhance collaboration. He proposed industry-wide standardization of components as a starting point, recommending unified specifications for common parts not visible to consumers, such as steel, wiring harnesses, and plastic components. At Toyota’s annual supplier conference in March, Toyoda warned, “If we don’t change course, we won’t survive.” Although he did not explicitly name Chinese automakers at the time, he stressed the urgent need to bolster the international competitiveness of Japan’s automotive industry.