Last month, Honda Chief Mibe Toshihiro told a press conference that the company was headed towards incurring a loss for the first time since 1957. Taking responsibility for the failure, he informed about a 30% cut in his and his deputy’s salary. However, Honda is not the only Japanese car company facing serious difficulties. Last week, Mibe warned that Japan’s automobile industry was facing an existential crisis. The 25% tariff on imported cars in America has reduced the industry’s profits. Chinese rival companies have had the biggest impact. Nissan, the world’s sixth largest company in terms of sales, is facing cutbacks for the second consecutive year. There are plans to close seven factories by 2028. Japanese car companies accounted for 31% of worldwide car sales in 2019. This fell to 26% last year. Whereas in Southeast Asia, the market share will fall from 68% in 2023 to 57% in 2025. EVs on the rise in the neighborhood Last year, 26% of electric cars, including hybrids, were sold in the global car market. This is 3% more than 2019. Sales are higher in Japan’s neighborhoods. One-third of the cars sold in Asia last year were electric.
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Honda-Nissan heading towards losses: Japanese auto industry in danger from Trump tariffs and Chinese cars
