Toyota VP Koji Sato calls for component standardisation to curb Chinese competition

Koji Sato, vice‑president of Toyota and head of the Japan Automobile Manufacturers Association, warned that without a radical change Japanese carmakers may not survive. He urged a historic joint effort to standardise basic, non‑visible parts – such as steel, wiring harnesses and plastics – across all Japanese manufacturers, noting that roughly 70,000 variants of wiring are currently produced. “If things don’t change, we will not survive,” he said.

The appeal comes as Chinese manufacturers rapidly gain market share. In May, Chinese firms Geely, SAIC, BYD, Chery and Leapmotor sold 138,140 vehicles in Europe, overtaking the combined 130,424 units sold by Toyota, Suzuki, Honda, Nissan, Mazda and Mitsubishi. Toyota’s sales in China fell 17% in the first half of the year, while Honda’s dropped 35%, with similar pressure felt in Southeast Asia and Australia. Standardisation is intended to cut costs and free resources for software, battery and fast‑charging technology development.