Chinese automakers' 'involution' drives down Japanese car stocks to new lows

China's aggressive global expansion in the automotive industry is creating intense competition, dubbed "involution," that is hitting domestic players and now impacting established Japanese giants.

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Chinese automakers are intensifying global competition, impacting both domestic and international markets.

Financial commentator Hsieh Chin-ho noted that BYD, a dominant Chinese automaker, has seen its stock price repeatedly fall to new lows. Xiaomi's stock has also plummeted by over 60%. This "involution" is not confined to China; it's now pressuring Japanese car manufacturers.

Toyota's stock price has fallen from 4,000 yen to 2,686 yen, reaching a new record low. Despite repeated efforts by Toyota's president to reassure the market, the company's stock continues to slide. Other Japanese automakers, including Nissan, Honda, Mitsubishi, and Mazda, are also seeing their stock prices decline.

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China's involution is not confined to China; it's now pressuring Japanese car manufacturers.

Hsieh suggested that if Japan is struggling to cope, European car manufacturers might face even greater challenges. He pointed to the struggles of Chinese electric vehicle stocks in Hong Kong, with many companies' share prices falling by more than half this year. This trend highlights the powerful impact of China's automotive industry competition on a global scale.

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If Japan is struggling to cope, European car manufacturers might face even greater challenges.