Chinese automakers surpassed Japan in global new vehicle sales for the first time last year, claiming the top spot by country. Japan had held the position since 2000. However, with signs of slowing domestic growth in China, expansion into overseas markets including Europe and Southeast Asia has emerged as a key variable determining whether this momentum will continue.
BYD, Geely Advance While Honda, Nissan Retreat
According to Nikkei on the 22nd, Chinese automakers' global new vehicle sales reached approximately 27 million units last year, up about 10% from the previous year. This surpassed Japan, which saw sales decline slightly to about 25 million units. The figures were estimated by Nikkei based on company disclosures and data from S&P Global Mobility and MarkLines.
Among the world's top 20 automakers by sales, six are Chinese companies, overtaking Japan's five to claim the most spots. BYD, China's top automaker, grew about 8% to 4.6 million units, securing sixth place globally. It surpassed Honda (9th, 3.52 million units), Nissan (11th, 3.2 million units), and even Ford (7th, 4.39 million units), one of America's Big Three. In the electric vehicle segment, BYD displaced Tesla to claim the world's top position. Low-cost EV exports are seen as a major driver of its overseas performance.
Geely, China's second-largest automaker, rose about 23% to 4.11 million units, climbing to eighth place globally from tenth the previous year. Its compact EV "Xingyuan" launched last year was a hit in China, and expanded sales channels in Latin America and other overseas markets contributed to the growth.
Japanese automakers, meanwhile, lost ground. Honda fell about 8% to 3.52 million units, dropping one position to ninth place globally—the largest decline among the top 20. Combined with EV-related losses and poor performance in China, the company is projected to post its first loss since listing, potentially reaching 690 billion yen in fiscal year 2025.
Nissan also declined about 4% to 3.2 million units, falling outside the top 10 globally for the first time since 2004. Struggling with management difficulties, Nissan has been forced into restructuring, including deciding to withdraw from its Mexico plant.
Toyota, the world's largest automaker, sold about 11.32 million units, up approximately 5% from the previous year, maintaining first place for the sixth consecutive year. Volkswagen followed with 8.98 million units, and Hyundai Motor and Kia with 7.27 million units. While Toyota saved face, Japan as a whole has ceded leadership to China, deepening concerns about a crisis in Japan's auto industry.
Slowing Domestic Demand Intensifies Competition for Overseas Plants
Whether Chinese automakers' momentum will continue this year remains uncertain. Competition within China has intensified, and sales growth has notably slowed as tax incentives for new energy vehicles including EVs have been reduced. BYD is struggling, reporting February results down 40% from the same month a year earlier.
In response, Chinese automakers are accelerating efforts to secure overseas production bases. In January, Geely set a target of raising global sales to over 6.5 million units by 2030. The plan includes increasing overseas sales to more than one-third of total volume and launching key electric SUVs including the EX5 worldwide.
Nikkei noted, "Chinese automakers are shifting from exports to local production to improve cost competitiveness," adding that "if Japan does not strengthen its cost competitiveness, the gap with Chinese companies will widen further."
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