Chinese automakers are overturning their once-dominant Japanese competitors.
According to media reports, the global production share of Japanese cars has dropped from 20% two decades ago to 11%, while Chinese cars have rapidly risen, accounting for nearly 40% of global automobile manufacturing. Chinese automakers are expanding into Southeast Asia, the Middle East, and Africa, leveraging low-cost batteries and flexible supply chain advantages to challenge the long-standing dominance of Japanese brands like Toyota, Honda, and Mitsubishi in these markets.
According to a new report by Bloomberg, the rise of Chinese automakers has threatened the traditional advantages of Japanese brands, which are struggling under the competition from Chinese brands.
Between 2019 and 2024, Japanese automakers have seen a sharp decline in market share in countries like China, Singapore, Thailand, Malaysia, and Indonesia. In Thailand and Singapore, Japanese automakers currently hold only 35% of the market share, down from 50% in 2019—streets that were once filled with Japanese cars are now seeing an increasing number of Chinese brands.
Even Toyota, the global sales leader, has seen its sales stagnate in the Chinese market.
Bloomberg points out that Toyota remains competitive in some segments, such as the pickup truck market, and its dominance in Southeast Asia is maintained through gasoline vehicles that cater to local consumer preferences.
However, Toyota's overall outlook is concerning, as the company is slow to transition to fully electric vehicles, facing the risk of falling behind in a market driven by advanced battery technology and smart software.
Meanwhile, other Japanese brands like Nissan are facing serious difficulties, with an outdated product line and a lack of hybrid vehicles leading to profit losses and declining production. Currently, Nissan's market share in Jakarta, the capital of Indonesia, is gradually fading.
On the other hand, Chinese automaker BYD is rapidly gaining market share in Indonesia, breaking into the top six best-selling brands in just a few months, particularly with its Seal electric vehicle model priced at $40,000, which is very popular among locals

Chinese automakers are expanding into Southeast Asia, the Middle East, and Africa, leveraging low-cost batteries and flexible supply chain advantages to challenge the long-standing dominance of Japanese brands such as Toyota, Honda, and Mitsubishi in these markets

- Chinese automakers are overtaking their once-dominant Japanese competitors, with Japan's global production share dropping from 20% to 11% over the past two decades, while China's share has surged to nearly 40%.  
- A Bloomberg report highlights that Japanese brands are struggling in markets like Thailand and Singapore, where their share has fallen from 50% in 2019 to just 35%.  
- Meanwhile, Chinese manufacturer BYD has quickly gained market presence in Indonesia, becoming one of the top six best-selling brands, particularly with its popular $40,000 Seal electric vehicle.

Intense Battle in Southeast Asia: Chinese Car Companies Rise, Japan Continues to Retreat