Japanese automakers plan to use latest Chinese tech in their EVs

Japanese automakers plan to use latest Chinese tech in their EVs

  • 5 hours ago
  • eu.detroitnews.com
  • Keywords: dangerous, success

Japanese automakers are collaborating with Chinese tech companies to integrate advanced technologies into their EVs, aiming to regain market share in China. Toyota is using Huawei's OS, while Honda partners with DeepSeek for AI. They focus on PHEVs as a key strategy.

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Estimated market influence

Toyota Motor Corp.

Toyota Motor Corp.

Negativesentiment_dissatisfied
Analyst rating: Buy

Toyota's new EV model 'bZ7' will be equipped with Huawei's OS. Toyota is also planning to appoint young Chinese people to chief engineer positions for the Chinese market.

Nissan Motor Co.

Nissan Motor Co.

Negativesentiment_dissatisfied
Analyst rating: Sell

Nissan saw a 12.2% decrease in new car sales in China in 2024 compared to the previous year. They plan to invest an additional 10 billion yuan by the end of 2026 and redefine their strategy for the Chinese market focusing on NEVs.

Honda Motor Co.

Honda Motor Co.

Negativesentiment_dissatisfied
Analyst rating: Buy

Honda's sales decreased in China, with plans to adopt AI technology from DeepSeek and collaborate with a Chinese startup on driver assistance tech. They aim to develop congestion-area driving capabilities.

Mazda Motor Corp.

Negativesentiment_dissatisfied
Analyst rating: N/A

Mazda's new model 'EZ-60' will be available in both EV and PHEV versions, but there is no specific financial impact mentioned.

Dongfeng Nissan Passenger Vehicle Co.

Negativesentiment_dissatisfied
Analyst rating: N/A

This joint venture redefined its strategy for the Chinese market to focus on NEVs.

Huawei

Positivesentiment_satisfied
Analyst rating: N/A

Huawei's OS will be used in Toyota's new EV model 'bZ7'.

DeepSeek

Positivesentiment_satisfied
Analyst rating: N/A

Honda is collaborating with DeepSeek for AI technology in vehicle development.

Context

Analysis of Japanese Automakers' Strategic Shift in China's EV Market

Overview

  • Strategic Focus: Japanese automakers are leveraging Chinese technology to enhance their electric vehicle (EV) offerings and regain market share in China.

Key Initiatives by Automakers

Toyota Motor Corp.

  • Collaboration with Huawei:
    • Toyota's new "bZ7" EV will feature an operating system (OS) developed by Huawei.
    • Aims to launch the model within one year.
  • Local Talent Development:
    • Appointing young Chinese professionals as chief engineers for China-specific vehicle development.

Honda Motor Co.

  • AI Technology Partnership:
    • Collaborating with Chinese startup DeepSeek on artificial intelligence (AI) technology for vehicle development.
    • Co-developing driver assistance systems tailored for congested urban areas in China.

Nissan Motor Co.

  • Investment in R&D:
    • Additional investment of 10 billion yuan (≈200 billion yen) by the end of 2026.
    • Focusing on new energy vehicles (NEVs) and PHEVs to align with market trends.

Mazda Motor Corp.

  • Dual Powertrain Models:
    • New "EZ-60" model will be available as both an EV and a plug-in hybrid electric vehicle (PHEV).

Market Performance

  • Sales Decline in 2024:
    • Toyota: Decrease of 6.9%
    • Nissan: Decrease of 12.2%
    • Honda: Decrease of 30.9%
  • Market Share Drop:
    • From 24.1% in 2020 to 13.7% in 2024.

Drivers of Decline

  • Delayed EV/PHEV Launches: Hindered competitive positioning in China's rapidly evolving EV market.
  • Intense Competition: Dominance of Chinese brands like BYD and startups.
  • Economic Downturn: Reduced consumer spending on vehicles.
  • Perceived Lack of Innovation: Criticism from consumers about Japanese automakers' vehicle offerings.

Competitive Dynamics

  • Focus on PHEVs:
    • PHEV sales in China grew by 83% in 2024, surpassing EV growth rate of 15%.
    • Total EV sales reached 7.71 million units in 2024.
  • Strategic Shifts:
    • Nissan's redefined strategy for NEVs and Mazda's dual-powertrain approach reflect a broader industry trend toward flexibility.

Long-Term Implications

  • Adaptation to Local Market Needs: Partnerships with Chinese tech firms will be critical for innovation and competitiveness.
  • Regulatory Compliance: Potential impact of China's stringent EV regulations on global automakers' strategies.

Industry Insights

  • China as a Global Innovation Hub:
    • Described as the "world’s most advanced electrification and smartization market."
    • Collaboration with Chinese companies is essential to meet evolving consumer demands.