Chinese Cars Surpass Japanese in Europe and Australia, Toyota Pushes Industry Standard

In May, five Chinese automakers—BYD, SAIC Motor, Geely, Chery and Leapmotor—sold 138,410 vehicles in the European Union, overtaking the combined 130,424 units sold by Japanese brands Toyota, Honda, Nissan, Suzuki, Mazda and Mitsubishi. This marked the first time Chinese brands outsold Japanese ones in Europe.

In Australia, Chinese‑built cars have outsold Japanese‑built cars for five consecutive months. June 2026 saw 46,592 Chinese‑made cars sold versus 27,098 Japanese‑made vehicles. Toyota’s vice‑chairman Koji Sato responded to the competitive pressure by proposing a “Japan standard” that would standardise components such as steel, wiring harnesses and plastics across Japanese manufacturers to cut costs and free resources for innovation.

Sato warned that without such reforms, Japanese automakers could lose further ground to fast‑growing Chinese EV producers that are gaining market share in Europe, Southeast Asia and Australia.