Chinese car manufacturers have begun to quickly overtake their once invincible Japanese rivals. Brands such as Toyota, Honda, Nissan, Mitsubishi and others are losing their market positions at an alarming rate, writes Bloomberg.
From 2019 to 2024, Japanese companies suffered their biggest losses in market share, and this was most felt in countries such as China, Singapore, Thailand, Malaysia and Indonesia, where they have traditionally dominated until now.
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The main reason is the strong competition from Chinese manufacturers who are actively developing and offering modern technologies. The slow transition to fully electric cars is cited as the most important problem for Japanese brands.
And Chinese companies are leaders in this field. In North America, where hybrid cars are popular, Japanese manufacturers still hold onto the market, but globally their share is declining significantly.
More specifically, the decline is from over 20% in the late 1990s to 11% today. During the same period, China increased its share from 1.4% to 38.4%. China's success is based on several key factors.
Including a focus on electric vehicles and an advantage in battery technology, which allows domestic manufacturers to offer much more competitive prices.
Chinese companies are actively entering new markets, especially in Southeast Asia, the Middle East and Africa. For example, BYD became the sixth largest brand in the country just a few months after entering the Indonesian market.