- Major Japanese brands sharply reduced China output to about 1.02 million vehicles in Apr–Sep 2026, a 32% year‑on‑year decline as demand shifts toward electrified models and lower-priced local rivals.
- Combined production fell from a 2020 peak near 2.8 million; Toyota made 663,079 units (down 18% YoY), Honda 131,716 (down 60%), Nissan 163,192 (down 49%), Mazda rose 43% but remains well below peak.
- The cuts hit gasoline and hybrid-dependent portfolios hardest versus booming NEV adoption — 7.758 million NEV retail sales YTD and 58% penetration — risking further margin squeeze, dealer losses, and scaling challenges.
Toyota, Honda, Nissan and Mazda continued to cut production in China, with their combined output falling to its lowest level since 2008 in the six months from April to September 2026, Nikkei Asia reported.
The four automakers produced approximately 1.02 million vehicles in China during the period, down 32% YoY, according to data compiled by Nikkei Asia. Their combined output has fallen by nearly 1.8 million vehicles, or 63%, from its peak of around 2.8 million in 2020.
Honda recorded the steepest decline. Its China production plunged 60% YoY to 131,716 vehicles between April and September, roughly 90% below its 2020 peak. Nissan’s output fell 49% YoY to 163,192 vehicles over the same period, down approximately 80% from its peak.
Toyota produced 663,079 vehicles in China, an 18% YoY decline and 23% below its 2020 level. Mazda was the only one of the four to increase production, with output rising 43% YoY during the six-month period. Even so, its production remained 52% below its own peak.
The sharp contraction among Japanese automakers reflects mounting pressure across China’s broader auto market. Retail passenger-car sales totaled 13.334 million units from January to September, down 21.7% YoY.
The gasoline-powered vehicle market has come under further pressure as factors including the Middle East conflict have pushed up global oil prices. China recorded 7.758 million NEV retail sales in the first nine months of 2026, putting the NEV penetration rate at 58%.
Japanese automakers remain heavily reliant on gasoline-powered models, including hybrids. The shrinking demand for these vehicles has directly weighed on their production in China.
Their sales have also declined alongside the production cuts.
Toyota sold 684,903 vehicles in China from April to September, down 25% YoY and its lowest level since 2017. Honda’s sales fell 48% YoY to 161,372 vehicles, while Nissan delivered 182,854 vehicles, down 45.5%.
Mazda was again the only automaker among the four to post growth, with China sales rising 6.3% YoY to 34,045 vehicles.
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