From Workshop to World Stage: How China’s Electric Vehicle Revolution Echoes Japan’s Automotive Ascent, but at Warp Speed, and What it Means for the Future of Global Car Markets Amidst Trade Tensions

The rise of Chinese electric vehicle (EV) manufacturers is reminiscent of Japan’s ascent in the automotive industry during the 1960s and 1970s. Both nations leveraged a combination of innovative technology, cost-effectiveness, and a relentless focus on quality to challenge established Western automakers. Notably, China has already surpassed Japan to become the world’s largest automobile exporter (Diplomatic Watch, April 2025).

Echoes of the Past: Japan’s Automotive Ascent

In the 1960s, Japanese car manufacturers like Toyota and Honda began producing reliable, fuel-efficient vehicles that were priced competitively. They quickly gained a reputation for quality and reliability, eroding the market share of American automakers. Similarly, Chinese EV makers like BYD and Nio now produce high-quality, technologically advanced vehicles at competitive prices. BYD, for example, saw a staggering 764% year-on-year increase in all-electric model sales in early 2025 (Motor Finance Online, March 2025).

Faster Quality Improvement in China

One key difference is how Chinese EV manufacturers address quality concerns. Japanese automakers faced criticism for initial quality issues in the 1960s and 1970s. However, they quickly addressed these concerns through rigorous quality control measures and a focus on continuous improvement. Learning from the past, Chinese EV makers have strongly emphasized quality from the outset, investing heavily in research and development to ensure their vehicles meet global standards.

EV Focus Over Internal Combustion

Another significant difference is the focus on electric vehicles. While Japanese automakers initially focused on gasoline-powered vehicles, Chinese EV manufacturers have strategically prioritized electric vehicle technology. This early focus on EVs has allowed them to gain a significant head start in battery technology, electric motor design, and autonomous driving capabilities. China holds approximately 70% of global patents for NEV technologies (Diplomatic Watch, April 2025).

China’s Economic Advantages

China also possesses several economic advantages that could accelerate its dominance in the EV market. The country has a large and skilled workforce, which translates into lower manufacturing costs. Additionally, China dominates EV battery manufacturing, with Chinese groups CATL and BYD accounting for more than half of the global market share (ANZ, November 2024). China also has near-absolute control over the supply of rare earth metals, critical components in producing electric vehicle batteries.

The Impact of Trade Wars

The ongoing trade tensions between the United States and China could significantly impact the global EV market. While these tensions, including significant tariffs on Chinese EV imports to the US (The Japan Times, March 2025), could create challenges for Chinese EV manufacturers seeking to expand into the US market, they could also incentivize them to develop their own domestic markets and supply chains and expand into other regions like Europe and Southeast Asia (Motor Finance Online, March 2025).

Wrapping Up: A New Global Automotive Landscape

The rise of Chinese EV manufacturers is a significant development with the potential to reshape the global automotive landscape. By leveraging their technological prowess, cost advantages, and a strong focus on the EV market, Chinese automakers are poised to become major players. Whether this will lead to a repeat of Japan’s success in the automotive industry remains to be seen, but one thing is sure: the global EV market has become much more competitive.

Disclosure: Picture rendered with Gemini.

Rob Enderle is a technology analyst at Torque News who covers automotive technology and battery developments. You can learn more about Rob on Wikipedia and follow his articles on Forbes, X, and LinkedIn.