The business environment surrounding global passenger car makers is becoming increasingly challenging due to the U.S. tariff hikes, intensifying competition in the Chinese market, worsening structural challenges in operations in developed countries, and uncertainty about the future of electrified vehicles.
While emerging Chinese players are gaining ground in electrification and digitalization, the plight of manufacturers forced to rethink their strategies and plans is more serious, especially given the stagnant shift to BEVs.

German manufacturers have all seen their earnings deteriorate in recent years due to a combination of declining competitiveness in China, high costs since the war in Ukraine, and the effects of trade friction between the US and Europe, as well as between Europe and China.
VW Group, which is facing structural problems in Germany, has been forced to take a more in-depth restructuring.
The situation is serious for Porsche, which is revising its BEV conversion path and revising its product plans.

The impact of the U.S. tariff policy is also serious for the Japanese automakers, all of which have revised their forecasts for March 2026 downward and are expected to experience a significant deterioration in earnings.
All companies are highly dependent on the U.S. market in general, and are required to strike a strategic balance between strengthening local operations and maintaining production in Japan.
Toyota, which maintains the world’s top position with its multi-pathway approach, is adhering to its strategy of maintaining domestic production at 3 million units.

This report covers 22 major manufacturers and groups in Europe, North America, and Asia (Japan, Korea, China, and India), and summarizes noteworthy information and trends in each company’s management policy, business performance, business structure, product plans, production/procurement, R&D, sales, regional strategies, alliances, and other items.
The report analyzes how each passenger car manufacturer overcomes and survives the severe business environment and competition, and includes a discussion of the competitiveness of China’s emerging players.