The Japanese EV strategy took center stage at the Shanghai Motor Show on April 23, 2025. Leading Japanese automakers, including Toyota, Honda, and Nissan, revealed their newest electric and hybrid models. They aim to reclaim market share in China’s highly competitive auto landscape.
About 1,000 companies joined the biennial event, which continues through May 2. The event came during heightened trade tensions between the United States and China. The growing tariff battle has already disrupted global automotive operations.
Japanese automakers chose to highlight their shift toward localization in China. They are forming partnerships with Chinese tech firms and integrating local innovations into their vehicles. The Japanese EV strategy now heavily relies on understanding and adapting to the Chinese market.
Toyota debuted its bZ7 battery electric vehicle during the event. The car features an interface developed with Huawei, offering smartphone-like controls for drivers. Li Hui, Toyota China’s general manager, emphasized this step toward smarter mobility. He also revealed Toyota’s plans to begin production of Lexus EVs in Shanghai by 2027.
Honda also unveiled a new GT model under its Ye EV series. This series, exclusive to China, will include AI technology from Chinese startup DeepSeek. Honda’s chief in China, Masayuki Igarashi, said this collaboration will help build more advanced vehicles. He noted that the company will merge local strength with its own innovation.
Meanwhile, Nissan presented its plug-in hybrid Frontier Pro. The pickup truck will hit Chinese showrooms this year and expand globally in the near future.
However, the Japanese EV strategy faces strong competition. Chinese brands like BYD showed advanced vehicles with AI-assisted driving features. New energy vehicles, including EVs and plug-in hybrids, made up 45 percent of China’s 2024 car sales.
Trade tensions have worsened the situation for U.S. automakers. China imposed 125 percent tariffs on American imports. In response, Ford stopped shipping U.S.-made vehicles to China. Tesla also halted new orders for American-built cars.
A Lincoln official voiced concern during the show. He warned that their top model could face pricing issues due to the tariffs. With just 100 units available, he feared Chinese brands would dominate once the tariffs increase costs.
The Japanese EV strategy now hinges on localization, smart partnerships, and adapting quickly. As China’s market evolves rapidly, staying competitive demands innovation and regional focus.
