Core Insights - Japanese automakers are expected to adopt a conservative approach to R&D spending in the fiscal year 2025, with R&D expenditure projected to be less than 4% of sales, significantly lower than their overseas competitors [2][11] - The R&D spending of Japan's seven major automakers is projected to total 3.94 trillion yen, a slight increase of 2% year-on-year, with the R&D expenditure ratio at 3.92%, marking the second consecutive year below 4% [2][3] R&D Spending Breakdown - Honda leads the group with an R&D expenditure ratio of 5.7%, while Toyota ranks last at 2.8%. However, in terms of total R&D spending, Toyota remains the highest at 1.37 trillion yen, a 3.3% increase year-on-year [3][4] - Nissan plans to invest 630 billion yen in R&D, a 1.8% increase, with a ratio of 5% of expected sales. Suzuki's R&D spending is expected to rise by 13% to 300 billion yen, with a ratio of 5.2% [3][4] - Subaru anticipates a 12.5% decline in R&D spending, while Mitsubishi's spending remains unchanged from the previous year [3] Market Challenges - Japan's automotive industry faces significant challenges, including a 13.8% year-on-year decline in exports to the U.S., with automotive exports dropping by 28.4% due to U.S. tariff policies [6] - The seven major Japanese automakers are expected to see a combined operating profit reduction of approximately 2.67 trillion yen in the fiscal year 2025, which is over 30% of their total operating profit for the fiscal year 2024 [6] Strategic Shifts - Japanese automakers are adjusting their R&D strategies in response to the global slowdown in electric vehicle market growth, with some projects being postponed or scaled down [6][13] - Toyota plans to diversify its investments in carbon neutrality, focusing on hybrid and hydrogen technologies alongside electric vehicles, while also developing a software-defined vehicle platform [13][14] - Honda is prioritizing R&D in software-defined vehicles and advanced driver-assistance systems (ADAS), collaborating with Chinese companies to adapt to local market needs [13][14] Competitive Landscape - German automakers are significantly outpacing Japanese firms in R&D spending, with Volkswagen, BMW, and Mercedes-Benz leading the global rankings [7][8] - BYD has emerged as a strong competitor, ranking seventh in global R&D spending, reflecting the aggressive investment strategies of Chinese automakers in the electric and smart vehicle sectors [8]

Domestic News - In April 2025, the industrial added value of enterprises above designated size increased by 6.1% year-on-year, with a month-on-month growth of 0.22% [3] - The Ministry of Transport reported that 98% of service areas nationwide are equipped with charging piles, totaling 35,000 charging piles and 51,000 charging parking spaces [4] - Tianjin Public Transport has launched a pilot operation of L4 level autonomous driving buses, which can operate without human intervention [5] - Great Wall Motors introduced a "global unique" all-power intelligent platform compatible with five power forms, designed for luxury vehicles [6] - BYD and Shenzhou Car Rental have reached a strategic cooperation agreement to promote sustainable development in the car rental market [7] - Honda plans to develop a new generation of ADAS with Momenta, focusing on electric and hybrid vehicle competitiveness [8] - Li Auto's supercharging stations have exceeded 2,300, with over 12,500 charging piles installed across 31 provinces [9] - NIO Energy and Shenyang Zhongde Group signed a cooperation agreement to build 100 charging and swapping stations [10] International News - Honda aims to increase hybrid vehicle sales by 2.2 million units by 2030, adjusting its electric vehicle investment down by 30% [12] - BMW has begun road testing its first electric vehicles equipped with solid-state batteries, marking a significant advancement in battery technology [13] - Toyota plans to launch multiple new electric vehicle models in the U.S. market, seizing opportunities amid Tesla's declining sales [14] - Waymo has received approval to expand its fully autonomous taxi service in the San Francisco Bay Area [15] Commercial Vehicles - Shanxi province will implement a full subsidy for hydrogen fuel truck tolls starting June 1, 2025 [16] - Foton Motor and Huawei Digital Energy have partnered to accelerate the electrification of heavy-duty trucks [17] - Guoxuan High-Tech launched the G-series heavy-duty truck standard box, achieving breakthroughs in battery technology and longevity [18] - Jiangling's new Yuhang model is set to launch on May 21, 2025, enhancing its competitiveness in the market [19]