Hyperdrive
China’s EV Revolution Shows Grim Future for Japan Car Titans
- Toyota, Honda, Nissan sales all declined in China last year
- Lack of electric models is a turn-off for Chinese buyers
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In the world of gasoline cars, Japan’s automakers are king. Toyota Motor Corp. has held the title of the world’s No. 1 car company for the past three years, while Honda Motor Co. and Nissan Motor Co. remain global best sellers.
But as the transition to electric vehicles accelerates, the Japanese giants are facing stiffer competition from EV upstarts like Tesla Inc. and BYD Co. Nowhere is the threat more apparent than in China — the world’s largest auto market and where one in four cars sold last year was electric. EV sales are forecast to climb to 9 million in 2023, reaching market penetration of 35%.