Japanese carmakers lose global pace

Japan’s biggest automakers lost momentum in April as weaker demand in China, the Middle East and parts of the global export market pulled down combined sales, even as Suzuki delivered a sharp rise on the strength of demand in India.

Eight major Japan-based carmakers sold 1,936,042 vehicles worldwide during the month, a 1.3% fall from a year earlier. The decline highlighted the uneven conditions facing an industry that remains heavily exposed to overseas demand, currency swings, tariff uncertainty, intensifying competition from China-based electric vehicle makers and fragile consumer appetite in several key markets.

Toyota Motor, the world’s largest automaker by volume, remained the clearest drag on the monthly tally. Its global sales fell 3.1% to 849,306 vehicles, marking a third straight monthly decline. Overseas sales dropped 7.5%, while domestic sales rose 24.2%, helped by a rebound after earlier purchase delays linked to an environmental tax change. The contrast showed how local recovery was not strong enough to offset pressure in large export markets.

Toyota’s Middle East sales fell 33.7% to just over 31,000 vehicles, while China sales dropped 25.4% amid tougher price competition and a faster shift by consumers towards locally made electrified models. US sales slipped 4.6%, adding to pressure from higher trade costs and uncertainty over tariff policy. The automaker’s April export volume to the Middle East also suffered a steep fall, underlining how geopolitical tensions and shipping disruption have fed into delivery patterns.

Nissan Motor also weakened, with global sales down 7.6%. The decline reflected soft overseas performance, including in China, where the company has been trying to rebuild competitiveness after losing ground to domestic brands with lower-cost electric and hybrid models. Nissan’s position remains sensitive because of its exposure to the US and China, two markets central to its long-term recovery plan under chief executive Ivan Espinosa.

Nissan has set ambitious sales targets through the financial year 2030, including reaching 1 million annual vehicles each in the US and China, and 550,000 in Japan. Those targets point to a more aggressive product and market strategy, but April’s figures show the scale of the challenge. A faster model-development cycle and stronger localisation may help the company, though competition in China and pressure on margins in North America remain significant obstacles.

Suzuki Motor provided the sharpest contrast. Its global sales jumped 20.9%, supported by strong India demand and record overseas sales for April. The company also reported record overseas production for the month, mainly owing to higher output in India, where its subsidiary Maruti Suzuki remains the dominant passenger-vehicle maker. The group’s focus on small cars, compact sport utility vehicles and cost-sensitive buyers has helped it avoid some of the heavier pressures facing larger rivals in China and the US.

Suzuki’s performance has also strengthened its standing within Japan’s auto sector. The company overtook Nissan in 2025 to become the country’s third-largest automaker by global vehicle sales, behind Toyota and Honda. Its India-led model gives it a different growth profile from peers that rely more heavily on China, North America and premium export markets.

Honda Motor’s wider backdrop remains mixed. The company has been reassessing its electric vehicle strategy after heavy investment costs and slower-than-expected global EV adoption in several markets. Its motorcycle business continues to provide resilience, especially in India and Brazil, but the auto division faces the same structural pressures affecting the broader industry: tariffs, technology spending, China competition and tighter consumer budgets.

The April data also point to a wider divide within Japan’s auto industry. Companies with deeper exposure to China and the Middle East are feeling more strain, while those with stronger positions in India and compact-car segments are finding pockets of growth. Domestic sales in Japan offered some relief, but the home market is mature, ageing and unlikely to provide the scale needed to offset sustained overseas weakness.

Chinese automakers remain the most disruptive force. Their expansion in battery electric vehicles, plug-in hybrids and lower-cost software-defined cars has placed Japan-based manufacturers under pressure in China and increasingly in export markets. BYD and other China-based groups have intensified price competition, forcing established manufacturers to protect margins while funding electrification, hybrid development and software upgrades.

Toyota continues to rely on a broad powertrain strategy, with hybrids remaining central to its global sales mix. That approach has helped it maintain profitability during a slower EV transition, but April’s sales decline shows that even scale and product diversity cannot fully shield the company from regional shocks. Nissan and Honda are moving through deeper strategic resets, while Suzuki’s India-centred growth is reshaping competitive rankings among Japan’s automakers.