Chinese media report that Japanese and South Korean automakers are rapidly deepening their reliance on China's supply chains and platforms in an effort to accelerate development and reduce costs. They also report rising Chinese-content ratios in Japanese EV components and the growing adoption of local technologies.
China's influence over automotive supply chains in the Japanese market is said to be expanding rapidly. Reports cited include the fact that approximately 90% of the components in Toyota EVs launched in China are made in China, as well as Nissan's extensive use of Chinese-made components in an EV developed through a joint venture and the vehicle's expected rollout in Southeast Asia. This is said to signal changes in Japan's traditional keiretsu-based business relationships.
The competitive focus is shifting toward development speed and software capabilities, with Japanese companies adopting know-how from Chinese companies to shorten development cycles. Honda is cited as moving to bring vehicles produced in China and equipped with locally developed software back to Japan.
South Korea's mid-sized automakers are also said to be accelerating their adoption of Chinese technologies and platforms. Renault Korea has launched a new model based on Geely's CMA platform, while KG Mobility has obtained a license for Chery vehicles' T2X platform and is pursuing joint development.
As background, it has been pointed out that China has established the world's largest and fastest-developing new energy vehicle supply chain, making it indispensable in critical technologies and resources including autonomous-driving algorithms, LiDAR, in-vehicle batteries and rare earths. The report also noted that at least 15% of the world's components are made in China.