When Japanese car managers talk about their industry these days, there is a sense of drama. Toyota Chairman Akio Toyoda speaks of the biggest changes since the invention of the automobile. Nissan’s CEO Makoto Uchida sees a turning point that the auto industry has not experienced in 100 years. And the boss of Honda, Toshihiro Mibe, thinks: “We can no longer fight according to the known rules in view of the rapid changes in our industry.” Above all, it is the many new competitors from China and the electric pioneer Tesla from America who are doing this Bringing beads of sweat to the foreheads of representatives of one of the most successful auto nations in the world. Similar to the German manufacturers Volkswagen, BMW and Mercedes, the Japanese have become big and popular with classic combustion engines. A little later than their German competitors, they have adapted to a world in which more climate-friendly drives are in demand and the software in the car is becoming a selling point for many customers. While Tesla and the Chinese upstart BYD have long been allowed to sell their electric cars in millions of units Many of the all-electric offerings from the Japanese are still viewed as experiments. Like the Honda E, for example, which looked somehow cult-like, knobbly, but found hardly any buyers due to its lack of range – and was taken off the market again. Lost ground, especially in China. The Japanese have lost ground rapidly, especially in the important sales market of China: While four years ago one in four new cars sold in China was Japanese, the market share is now only 12 percent. For years, Nissan had sold more than a million vehicles a year here, a good third of total sales. In the last financial year there were only 790,000. Due to a lack of demand, Mitsubishi announced a few months ago that it would completely stop production in China. The exceptionally favorable yen exchange rate has so far cushioned the China misery well. The Japanese were able to significantly improve their sales, especially in Europe and America, and ultimately record record profits. In addition, Toyota, for example, is currently scoring points with its hybrid vehicles, which many buyers obviously see as a good alternative to expensive and not always reliable pure electric cars. But Japan’s car managers and the government have recognized that they urgently need to catch up if they don’t want to see only the taillights of the new competitors soon. The companies are currently investing billions of dollars in the many technologies that are used in cars to keep up with the future. Toyota, the world’s top-selling car manufacturer, plans to invest the equivalent of $13 billion in e-mobility, artificial intelligence and the new supply chains required for this this year alone. The company is currently building a new factory just for electric car batteries in North Carolina, USA, for a total of $14 billion. Honda has doubled its budget for future technologies for the coming years to 65 billion dollars. Local rivals are looking for solidarity. But not only money, but also closer cooperation should pave the way into the future. The local rivals are currently surprisingly openly looking to join forces in order to be able to develop new technologies together more quickly and cheaply. Honda and Nissan are examining how they can join forces in the development of new electric motors. And with a view to important vehicle software, for example for autonomous driving or cyber security, the Japanese Ministry of Economic Affairs Meti, known for its industrial policy ambitions, has now even called on the country’s entire automotive industry to carry out joint research. The government has declared it a national strategy for domestic car companies to achieve a global market share of 30 percent in the so-called software-defined car by the end of the decade. More on the topic The global car industry is currently going through a wave of revolutionary changes, said Prime Minister Fumio Kishida at a recent meeting Economic conference in Tokyo. “The next decade will decide who emerges victorious from this competition.” Kishida leaves no doubt that Japan’s government will support the country’s most important industry.
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