Japanese automakers seek new ignition in innovation, India

Japanese carmakers are pinning hopes on technology and new launches to counter Chinese rivals' expanding footprint, shortages of rare-earth magnets and chips, as well as US tariffs-with India keeping their growth engines humming.

- Ayaan Kartik

Toyota Motor Corp., Suzuki Motor Corp., Nissan Motor Co. Ltd, Honda Motor Co. Ltd and other Japanese players unveiled their aggressive expansion plans-from new electric vehicle (EV) technology in smaller cars to reinventing iconic old brands at the Japan Mobility Show 2025.

The auto exhibition was held in Tokyo against the backdrop of ongoing negotiations between the US and China, which have been locked in a prolonged trade war, with the ripple effects of the conflict being felt across the Japanese and Indian auto industries.

Akio Toyoda, chairman of the world's largest automaker Toyota, offered a rare public reflection on Japan's waning global influence to Chinese rivals such as EV maker BYD, which has quickly expanded its global market share.

BYD's international sales surged 72% to 417,204 units in 2024, accounting for 10% ofits total sales. The company now aims to double that figure, with a sharper focus on South east Asia and Europe.

"Japan as a nation seems to have lost some of its energy and dynamism, along with our presence in the world," he said in his address to hundreds of international and Japanese delegates on 29 October.

"The 'Japan as No.l' era is behind us, and we are now in what has come to be known as 'the lost 30 years'," he added.

His remarks hit home as BYD showcased its first Kei car, the smallest category of Japanese expressway-legal motor vehicle, to disrupt their home market. Kei cars, long the territory of Japan's carmakers, account for more than 30% of Japan's car sales.