KATHMANDU: Toyota Vice Chairman Koji Sato has urged Japanese automakers to work more closely together to remain competitive against the rapid rise of Chinese electric vehicle manufacturers.
According to Automotive News, speaking at Toyota’s annual supplier meeting, Sato warned that the Japanese auto industry faces a critical turning point, saying, “Unless things change, we will not survive,” while highlighting the need to strengthen the industry’s global competitiveness.
Sato has proposed creating a common “Japan standard” for components such as steel, wiring harnesses and plastics. By standardizing parts that are not visible to customers, automakers could reduce manufacturing costs and focus more investment on software, advanced driver assistance systems, battery technology and other features that increasingly influence buying decisions.
According to Sato, suppliers currently produce around 70,000 different wiring harness variants, and reducing that number could significantly improve efficiency and lower costs.
The proposal comes as Chinese automakers continue to expand globally. In May, Chinese brands collectively outsold Japanese manufacturers in Europe for the first time, while Japanese brands have also lost market share in China as consumers shift towards domestically produced EVs.
Sato, who also chairs the Japan Automobile Manufacturers Association (JAMA), acknowledged that aligning multiple manufacturers on common components would be challenging. However, he believes greater collaboration is necessary as the industry undergoes one of its biggest transformations in decades.
