How did China manage to surpass Japan in global auto sales

Chinese car manufacturers have achieved remarkable performance, surpassing Japan in global vehicle sales for the first time in history, in 2025. According to a report by Nikkei, total sales of Japanese manufacturers have dropped to approximately 25 million units, while the Chinese sold nearly 27 million units. This change marks a significant transformation in the global automotive industry. Among Chinese manufacturers, BYD has surpassed Ford, reaching sixth place globally, while Geely has surpassed Honda, occupying eighth place. In the electric vehicle segment, BYD has become the sales leader, surpassing Tesla. Analyst Tang Jin from Mizuho Bank emphasizes that this rise of China reflects not only a change in ranking but also a restructuring of the global automotive industry, driven by technological advancements and research and development. Japan needs to reassess its strategies to respond to challenges from China.