Have you been following the car market lately? Japanese cars seem to be doing worse and worse in China.

I saw the related data too. Japanese cars used to have a very high market share in China, but now it is already below 10%, which is a big drop compared with their peak period.

The clearest sign is that Mitsubishi and Suzuki have already withdrawn from the Chinese market, and sales of Honda and Mazda have also fallen sharply. Many consumers are starting to switch to Chinese new energy vehicles.

That is true. Right now electrification and smart technology are developing very quickly. Chinese brands have advantages in batteries, smart systems, and pricing, so the competitive pressure is especially strong.

But interestingly, Toyota is the only Japanese brand whose sales are still growing. I heard they have managed to hold the market with their hybrid models.

Yes, many consumers in third- and fourth-tier cities are still not very used to pure electric cars, and charging infrastructure is not complete enough, so hybrids save fuel and also avoid range anxiety.

But in the long run, the market is still shifting toward fully electric vehicles. If Japanese brands respond too slowly, they may be pushed even further to the margins.

Exactly. China’s car market changes very quickly. Whoever can adapt faster to local demand will be able to gain a firm foothold. This is a major test for all car companies.