The world's carmakers are struggling to compete with China

[RuthieB]

Interesting comments from Honda CEO in the BBC business news today (28 May ‘26)……don’t Honda have factories in China?

We have no chance against this," Honda chief executive Toshihiro Mibe told Japanese media after visiting a highly automated factory in Shanghai.

[Downsizer]

Yes, we used to think Japanese cars were poor imitations of our wonderful British Leyland products! If you can’t beat them, you have to join them.

[Lord Voltermore]

Its an honest and realistic assessment.  China still has  millions of rural labourers earning less per year than even Chinese urban factory workers earn in a month. And much less they would have to be paid in  more advanced economies.   With communities happy for a huge factory to spring up on farm land  (or required by the Government  to allow it) 

Japan,or 'advanced' western economies, cannot hope to compete with this.   At present they can get their own branded products  and components parts made more cheaply in China, (or india etc etc|)  and then sell them more competatively  under their own name and reputation.   
But increasingly China are developing their own car brands,  and improving them to the point where they can cut out the expensive 'middleman' ie Japan ..Or, quite often they buy the rights to a once respected western Brands such as Volvo (and MG    and sell the cars they developed themselves  under that name. Unashamedly claiming the many years of history of that original brand.   Maybe  these new Chinese cars are deserving of their own good reputation (In the same way that Japanese cars eventually earned their own good reputation)  But I dont like products that claim past history of the original (failed) manufacturer.

[Jazzik]

I think we should expect the Chinese to gain and secure their place in the automotive market, just as the Japanese and Koreans did in the past.
When I see how brands like BYD, MG, Omoda, and JAECOO are growing like weeds here in Poland and are opening new dealerships everywhere, while there isn't a single Honda dealer to be found in our area anymore...

Furthermore, it appears they are very good at anticipating market demand. For example: in Europe, BYD was all about EV, EV, and only EV.
Now, suddenly, they have various models with plug-in hybrids, even small(er) models like the Atto 2 DM-i and, soon, the Dolphin G DM-i.