Japanese automakers once dominated the Chinese market with minimal competition, Volkswagen being their only serious rival.

In the Chinese market, Volkswagen consistently ranked second, followed closely by Toyota, Honda, and Nissan, which maintained top positions in sales, outperforming other brands.

However, with the rapid rise of new energy vehicles (NEVs), Japanese automakers, who have failed to keep pace, have continued to face setbacks in the Chinese market.

Rumors even circulated some time ago that Honda and Nissan might merge, but subsequent media reports indicated that no agreement had been reached, and a merger might not materialize.

Regardless of whether they merge, January data reveals that these three major Japanese brands have suffered another significant decline in the Chinese market, making their situation increasingly challenging.

Toyota's sales in the Chinese market dropped by 13.9% in January to 136,500 units. FAW Toyota fell by 14.3%, GAC Toyota by 11.7%, and Lexus by 16.2%, all impacted by the overall decline.

Nissan's sales in China fared even worse in January, decreasing by 30.7% to 45,418 units.

Honda's sales also declined by 31.8% to 68,890 units in the Chinese market during the same period.

In just one month, January, these three Japanese brands sold approximately 80,000 fewer cars in China, a rather dramatic drop.

The reason for this decline is clear: Japanese automakers have been slow to transform and still primarily rely on gasoline vehicles.

Historically, Japanese cars in China were known for their fuel efficiency, durability, and high resale value, which attracted many buyers.

But now, Japanese cars are no longer necessarily more fuel-efficient, and due to their lightweight construction, many people perceive them as less safe. Additionally, with the penetration rate of NEVs in China exceeding 50%, more than half of car buyers prefer new energy vehicles. How could Japanese automakers, which mainly focus on gasoline vehicles, avoid the fate of decline?

Once sales decline, the resale value also decreases, and these factors are interconnected. A decrease in resale value further exacerbates the sales decline. Therefore, for Japanese automakers, this is indeed a collapse, with sales likely to continue worsening, making recovery increasingly difficult.