Toyota’s aggressive expansion of electric vehicle production in China is creating a growing divide with its traditional Japanese suppliers, who are being sidelined in favor of local Chinese partners. The automaker’s shift toward sourcing components domestically in China risks weakening long-standing supply chain relationships in Japan, raising concerns about long-term industrial dependence. While Toyota emphasizes collaboration with Chinese manufacturers to meet rising EV demand, Japanese suppliers warn of potential job losses and reduced influence in the company’s global operations. The move underscores the intensifying competition between Japan and China in the automotive sector as global EV markets evolve.
Toyota's China EV push leaves Japanese suppliers in the cold Nikkei Asia