Toyota urges Japan to unite in auto race against China's rise

Toyota Motor Chairman Akio Toyoda has called on Japan's automotive sector and government to form a united front against China's growing dominance in the global car market. Speaking at an industry event, Toyoda warned that China's rapid progress in electric vehicles (EVs) and battery technology poses an existential threat to Japan's auto industry unless rivals collaborate more closely. Toyoda, who has long advocated for a diversified approach to hybrids and hydrogen alongside EVs, argued that Japan cannot rely on individual companies to match China's state-backed scale. His remarks highlight mounting anxiety in Tokyo as Chinese automakers like BYD gain share in Southeast Asia and Europe. Japan's industry has traditionally competed fiercely internally, but Toyoda's appeal suggests a shift toward collective action—potentially involving joint ventures, shared supply chains, and government incentives for next-generation technologies. The call comes as Japan's EV adoption lags behind many peers, and as trade tensions between Beijing and the West complicate supply lines. Analysts say Toyoda's push reflects a broader realization that Japan's automotive leadership is at risk without a coordinated strategy. However, past attempts at industry-wide collaboration have struggled due to corporate secrecy and antitrust concerns. The immediate challenge will be convincing rivals such as Honda, Nissan, and suppliers to pool resources on battery production and software development, areas where China has invested heavily. For consumers, the outcome could influence the availability and price of Japanese cars in global markets. Japanese policymakers are now weighing whether to respond with new subsidies or a national automotive strategy.