16:34 22-03-2026

China overtakes Japan in global car sales, led by BYD and Geely

The global automotive market experienced a pivotal shift in 2025, as Chinese automakers claimed the top spot in total sales for the first time in history, surpassing their Japanese counterparts. This marks the end of an era that lasted over 25 years, during which Japan consistently led the world's car market.

China's Momentum Driven by Scale and EVs

Industry statistics show Chinese companies sold around 27 million vehicles, representing an annual increase of approximately 10%. In contrast, Japanese brands saw a decline to about 25 million units, signaling a significant shift in the industry's power dynamics.

Chinese brands have made notable gains in global rankings. Six Chinese companies now rank among the world's top 20 automakers, outpacing Japan in this measure. Players like BYD and Geely have not only strengthened their positions but are also beginning to overtake traditional leaders such as Nissan and Honda.

BYD and Geely Reshape the Landscape

BYD emerged as a key growth driver, selling roughly 4.6 million vehicles, an 8% increase. Moreover, the brand surpassed Tesla in electric vehicle sales volume, becoming a global leader in this segment. Export growth played a crucial role, with over 1 million vehicles sold outside China for the first time, boosting the share of foreign markets to 20%.

Geely also demonstrated impressive momentum, increasing sales by 23% to 4.11 million vehicles. This success stems from new models, particularly compact electric cars, which perform well both domestically and abroad. At the same time, the company is actively expanding its presence in Latin America and other developing regions.

Japanese Brands Face Declining Fortunes

Amid China's rise, Japanese automakers are grappling with a significant downturn. Although Toyota remains the world's largest automaker with 11.32 million vehicles sold, the overall trend for the country remains negative.

Honda saw sales drop by 8% to 3.52 million vehicles, recording the steepest decline among major brands. The Chinese market was particularly hard-hit, with sales falling by nearly a quarter. The company now forecasts substantial financial losses and is forced to implement major reforms.

Nissan also lost ground, with sales falling to 3.2 million vehicles and dropping out of the top ten manufacturers for the first time in two decades. Additional pressure came from a downturn in Japan's domestic market, where demand fell by 15%.

China's Global Expansion Intensifies

Chinese automakers are aggressively entering international markets and evolving their strategies. While exports were once the primary focus, companies are now shifting toward localized production, which helps reduce costs and adapt more quickly to specific market demands.

Geely aims to increase global sales to 6.5 million vehicles by 2030, with foreign markets accounting for over one-third of that total. Chery and Leapmotor have also set ambitious targets for growth and expansion beyond China.

A significant step could involve acquiring overseas production facilities. Discussions are already underway regarding deals tied to Nissan's plants in Mexico, which would allow Chinese brands to establish a stronger foothold in North and Latin America.

Overall, the global auto industry is entering a new phase where China is becoming a key player not only in production volume but also in technological influence. If Japanese companies fail to adapt swiftly to these new conditions, the gap between them and their Chinese competitors will only widen.