Core Viewpoint - The Japanese automotive industry is experiencing a significant transformation in the Chinese market, with Toyota showing growth while Honda and Nissan face declines, indicating a split in performance among Japanese brands [1][3]. Group 1: Sales Performance - Toyota's sales in China reached 837,700 units in the first half of the year, a year-on-year increase of 6.8%, marking its first growth in nearly four years and surpassing the combined sales of Honda and Nissan during the same period [1][5]. - Honda's sales in China totaled 315,200 units, a decline of 24.23% year-on-year, while Nissan's sales were 279,500 units, down 21.3% [1][5]. - The market share of Japanese brands in China fell to 9.6%, a decrease of 2.4 percentage points compared to the previous year and a halving from the peak of 23.1% in 2020 [3]. Group 2: Competitive Strategies - Japanese automakers are entering a "cost-performance" battle in the Chinese market, with companies like Toyota and Nissan branding themselves as "new forces" in the industry [4]. - New electric vehicle models, such as the GAC Toyota bZ5 and Dongfeng Nissan N7, are being launched to capture market share, particularly in the electric SUV segment priced between 100,000 to 150,000 yuan [4][7]. - GAC Toyota's bZ5 and GAC Honda's P7 are positioned competitively against models like the Tesla Model Y, with significant price advantages [7][8]. Group 3: R&D and Localization - Toyota is adopting a localized R&D approach, giving Chinese teams significant decision-making power in product development, which includes partnerships with local tech firms [8][9]. - Honda is also expanding its collaborations with local companies to enhance its electric vehicle strategy, acknowledging the challenges in the Chinese market [9][10]. Group 4: Global Strategy and Future Outlook - Toyota's global strategy emphasizes a multi-fuel approach, focusing on hybrid and plug-in hybrid vehicles rather than solely on electric vehicles, with adjusted sales targets for electric models [10][11]. - Nissan is undergoing a restructuring plan called "Re:Nissan," which includes cost-cutting measures and a focus on electric vehicle development, aiming to save 500 billion yen by 2026 [12][13]. - The Japanese automotive industry's future in China is seen as a critical testing ground for electric vehicle strategies, with significant investments planned for R&D and technology centers [14].