Toyota warns: cooperate or lose ground to Chinese EVs
Toyota Motor Corporation vice chairman Koji Sato has called on Japan’s auto industry to work more closely together as competition from fast-growing Chinese electric vehicle makers intensifies in key global markets.
Speaking at Toyota’s annual supplier gathering in Japan, Sato said the country’s car industry is at a critical turning point and must improve its cost structure and technology focus to remain competitive. According to his remarks reported internationally, he warned that if Japanese automakers do not change how they operate, “we will not survive” against new rivals.
Push for a "Japan standard" for hidden components
Sato’s main proposal is the creation of a common "Japan standard" for parts that customers do not directly see, such as steel grades, wiring harnesses and plastic components. Today, suppliers produce an extremely wide variety of specifications for similar parts across different brands.
- According to Sato, there are around 70,000 different wiring harness variations currently in use.
By unifying many of these internal components across Japanese brands, Sato believes manufacturers could:
- Cut production costs significantly
- Simplify supply chains and manufacturing
- Free up more investment for software, advanced driver-assistance, batteries and EV platforms — the areas now driving buying decisions.
For Nepali buyers, this type of standardisation would not be visible in the showroom, but it could help Japanese brands keep prices more competitive and improve technology in future imports.
Chinese EVs gaining ground in Europe and China
Sato’s warning comes as Chinese carmakers rapidly expand overseas. Industry data cited in his speech shows that Chinese brands recently outsold Japanese brands in Europe as a group for the first time, driven largely by affordable and well-equipped electric vehicles.
In China itself, Japanese manufacturers have been losing market share as local buyers increasingly choose domestic EVs. This shift is pressuring long-established companies like Toyota, Honda and Nissan to rethink their strategies.
Collaboration will be difficult, but seen as necessary
Sato, who also heads the Japan Automobile Manufacturers Association (JAMA), acknowledged that convincing multiple rival automakers to adopt common component standards will be challenging. Each company has its own platforms, supplier relationships and brand priorities.
Even so, he argued that deeper collaboration among Japanese automakers and suppliers is now essential as the global car market moves towards electrification, connected vehicles and software-led features.
For Nepali customers, the outcome of these efforts in Japan will shape how competitive Japanese cars and future EVs remain against Chinese and other brands in the coming years, particularly on price, battery technology and safety features.
Reported by the Nepal AutoMart news desk. Prices verified against Nepal AutoMart's own distributor-sourced data.
