On-the-ground reporting on BYD and Huawei reveals that the direction of global automotive competition is changing in ways that differ from Japan. Comparing the characteristics of the Japanese market with those of other markets also highlights differences in government support measures.
Reporting from overseas motor shows reveals firsthand how the competitive dynamics of the global automotive industry are changing in ways that are difficult to see from Japan. In particular, Chinese companies are advancing their dominance of the domestic market and strengthening their price competitiveness in overseas markets, pointing to an ongoing transformation across the world.
One difference between Japan and the rest of the world is the low BEV penetration rate in Japan. As of 2025, BEVs accounted for approximately 25% of the global market, compared with less than 2% in Japan. Japan widely evaluates environmental performance, while Germany is expanding support for BEV purchases and extending the support period.
In China, the purchase tax on NEVs will be reduced by 50% in 2026–2027, providing a tax reduction of up to ¥15,000 per passenger vehicle. In addition, subsidies equivalent to 12% of the price of a new vehicle, up to ¥20,000, are provided when consumers replace their vehicles.
With Japan, Germany and China pursuing different objectives, focusing only on the Japanese market could mean missing developments elsewhere in the world. The importance of also referring to company announcements and media reports from the relevant markets is emphasized.