Japanese automakers shift strategy toward hybrid and Chinese EV production

Major Japanese automakers are shifting their strategic focus in response to changing global market demands and intense competition in China.

Nissan has reportedly decided to abandon plans for a fully electric version of its Qashqai SUV. Instead, the 2028 model will focus on optimizing internal combustion and hybrid technologies, specifically emphasizing e-Power technology. This pivot follows a slowdown in European electric vehicle demand and Nissan’s current financial pressures. The updated Qashqai is expected to feature a more digitalized interior and a redesigned front grille, with a planned release in 2027.

Toyota is also adjusting its global strategy, planning to begin production of its next-generation electric SUV in China starting in the autumn of 2027. This move signals a shift away from a Japan-centric production model toward targeting the world's largest automotive market. Additionally, Toyota aims to introduce its own L2++ autonomous driving system to passenger vehicles by 2028, with broader application expected by 2030.

Recent sales data for July shows a decline for Japan's three major automakers in the Chinese market: Toyota sales fell 24.3%, Nissan sales dropped 58.7%, and Honda sales decreased 44.1% compared to the previous year.