On March 19, 2026, leaders of Japan's auto industry issued a warning that greater collaboration among domestic manufacturers is essential for survival, as competition with Chinese automakers intensifies, particularly in the electric vehicle (EV) sector [1]. Koji Sato, outgoing Toyota CEO and chairman of the Japanese Automobile Manufacturers Association, identified seven 'priority challenges' facing the industry, emphasizing the need to focus on competitiveness and securing supply chains in a rapidly evolving global landscape [1].
Market analysts highlighted that Chinese EV battery makers have expanded their global market share to over 70%, placing Japanese firms at a disadvantage in both supply and technology chains [1]. Sato stressed, 'We have entered an era where it is no longer possible for one company to survive on its own. The challenges we face are too great and too complex,' underscoring the urgency for unified strategies and shared resources [1].
Key concerns for Japanese automakers include ensuring stable access to raw materials for battery production, developing next-generation mobility technologies, and responding to geopolitical risks that threaten parts supplies. Recent disruptions, such as output cuts due to the Iran conflict, have exposed the fragility of existing supply networks [1].
The Japanese Automobile Manufacturers Association plans to unveil detailed strategies in the coming months to foster deeper cooperation among its members. These strategies will focus on technology sharing, joint investment in research and development, and building more resilient supply chains to withstand global shocks [1]. As the industry faces transformation driven by electrification, digitization, and sustainability, Japanese automakers are being urged to adapt quickly or risk losing their historic leadership in the sector [1].
CONCLUSION
Japanese auto industry leaders are calling for urgent collaboration to address mounting challenges from Chinese competitors and supply chain vulnerabilities. The sector faces high market impact as it seeks to maintain global competitiveness through unified strategies and innovation. The coming months will be critical as detailed plans for deeper cooperation are expected to be unveiled.