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Toyota Vice Chairman Koji Sato is calling for Japanese automakers to work together on common standards for selected vehicle parts as Chinese brands continue to gain ground in key global markets.<\/p>\n
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The proposal would standardise components such as steel, wiring harnesses and plastics across Japan’s major carmakers. By reducing the number of component variations, automakers could lower costs, improve efficiency and put more resources into areas that increasingly influence car buyers.<\/p>\n
The push comes at a difficult time for Japan’s auto industry, with Chinese manufacturers steadily taking market share from established Japanese brands in Europe, China, Southeast Asia and Australia.<\/p>\n
\u201cUnless things change, we will not survive,\u201d Sato said during Toyota\u2019s annual supplier meeting in March, as Automotive News reported.<\/p>\n
Sato did not directly name Chinese automakers. Instead, he described the broader aim as strengthening Japanese carmakers’ \u201cinternational competitiveness.\u201d<\/p>\n
Chinese brands overtake Japanese automakers in Europe<\/p>\n
The scale of the challenge became clearer in May, when Chinese brands outsold Japanese automakers in Europe for the first time.<\/p>\n
According to data from the European Automobile Manufacturers’ Association, Geely Group, SAIC Motor, BYD, Chery Automobile and Leapmotor together sold 138,140 vehicles in Europe that month. Combined sales from Toyota, Suzuki, Honda, Nissan, Mazda and Mitsubishi stood at 130,424 units.<\/p>\n
The pressure is even sharper in China. Japanese automakers have been slower to embrace the electric vehicle transition, while young Chinese EV companies have grown rapidly with software-defined cars, ultra-fast charging and advanced battery technology.<\/p>\n
Toyota’s China sales fell 17 per cent in the first half of this year, while Honda’s sales declined 35 per cent.<\/p>\n
Southeast Asia and Australia are also seeing a similar shift as affordable Chinese EVs take market share from established brands.<\/p>\n
With these pressures building across several regions, Sato is taking the proposal to the wider Japanese auto industry through the Japan Automobile Manufacturers Association, which he leads.<\/p>\n