You know how much of an impact Chinese automotive brands now have on the industry when they become a recurring talking point at an event like the Japan Mobility Show. The topic didn’t dominate the conversation, for sure, but it came up often enough.
Specifically, China’s capacity to produce and export cheap electric vehicles would be referenced, and in the same breath, Japanese carmakers—many of whom presented electric concepts at the show—were asked how they intend to address the threat.
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Nissan, considered one of the pioneers of electrification in the industry with global EV sales already topping one million units this year, says it is prepared against the onslaught of Chinese EVs, although CEO Makoto Uchida admits even they have not expected electric technology to progress this rapidly. “When you look at the world, it is evolving at a very high speed when you talk about electrification,” he said. “We thought that the pace of electrification [would be] more step by step, but it accelerated much faster.
“One, because we have Chinese [competition], which is coming very strongly in every market, and from that point of view, we really need to further transform ourselves.”
Perhaps more than tech-loaded vehicles like the recently launched MG4 EV and the Marvel R, Chinese electric micro cars are currently gaining traction in developing countries. One locally available example would be the Jetour Ice Cream. Such models are comparable in size and use case to Japan’s kei cars, which are now being electrified as well.
Now, we love writing about kei cars as much as you guys seem to love reading about them, but the fact remains that this class of vehicle is limited to the Japanese market, where their share has peaked at 40% of domestic sales. This doesn’t mean, however, that tech and insights from the segment won’t influence potential offerings for other markets.
“Kei cars are for Japan, but we have a lot of platforms that can cope with that A-segment,” said Uchida. “Not only Nissan, but with our [Alliance] partners as well. And we have a lot of plans of introducing affordable A-segment EVs in the future. Again, I cannot tell when, but we do have a lot of plans.
“I do understand that the Chinese are coming very strong in the Philippines, and we are prepared.”
We could leave it here, but Alliance partner Mitsubishi dropped an interesting tidbit at JMS 2023. Earlier this year, we reported that the Mitsubishi eK X EV’s appearance at the Gaikindo Indonesia International Auto Show—the first time the electric kei car was ever shown outside of its home market. Along with its platform-mate, the Nissan Sakura EV, it won the 2022-2023 Japan Car of the Year.
In Indonesia, local assembly of completely knocked-down (CKD) eK X EVs will begin in 2024 to cater to growing demand in the Japanese market, although regional media outlets have reported that an Indonesian launch is being considered. Conveniently, Indonesia is a right-hand-drive country like Japan. GridOto wrote as part of its JMS coverage that “further studies” are still being made as regards “marketing, feasibility, and profitability,” but there’s a chance an Indonesian launch could be ‘accelerated’ should there be a great demand for the model.
Of course, demand or interest should translate into profitability, and the former does not necessarily lead to the latter. It’s worth keeping an eye on what will happen in Indonesia, but what works there will not automatically work for us. In any case, it’s interesting times ahead in the industry as established players navigate their way into an electrified future alongside aggressive upstarts.
