Toyota manages to resist in China
Japanese carmakers are generally struggling in China, but Toyota is faring better than Honda or Nissan, whose sales collapsed much more sharply in 2024 and 2025. Why? Because Toyota combines several structural advantages and some strategic decisions that cushion the blow of a market now dominated by Chinese carmakers.
1. A more resilient product strategy than its competitors. Hybrid vehicles remain a strong pillar for Toyota, including in China . Even if sales are declining, the brand benefits from an image of reliability and expertise accumulated over several generations, giving it a more stable customer base than Honda or Nissan, which are much more exposed to the decline of pure combustion engines.
2. Chinese brands dominate the electric vehicle market, but Toyota has reacted faster than other Japanese carmakers by launching low-priced electric models (BZ3, BZ3X) through its joint ventures GAC and FAW, thus limiting the erosion of its market share. These models are now offered at around €12,000–€12,500, an aggressive positioning that allows it to remain competitive.
3. Toyota has adapted to the market more quickly than VW or other Japanese carmakers. They have agreed to sacrifice their profit margins, something Volkswagen long refused to do. The price war in China is fierce, and Toyota has chosen to respond directly, unlike VW, which is feeling the greater pressure from BYD and local brands.
4. Local technology partnerships: Toyota, for example, uses BYD's Blade batteries on some models, which reduces its costs and improves its competitiveness.
5. A more robust brand image : Toyota benefits from a good reputation, which cushions the fall better than brands perceived as less innovative or less reliable.
6. Toyota remains a "long-term" brand : Chinese carmakers innovate quickly, but their product cycle is very short (3 years), which can create a perceived risk regarding durability. Toyota, on the other hand, capitalizes on decades of technical validation and reliability, a significant psychological advantage for some Chinese buyers.