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.

[John Ratsey]

China has many car manufacturers who are making little or no profit. Will some disappear as quickly as they have appeared leaving their products without long-term support? Are there some lurking problems similar to Honda's brake simulator problem? Perhaps longer-term considerations don't trouble people who are on 3? year PCP deals which could leave dealers with vehicles which are difficult to sell. What will one of the JAECOO Range Rover look-alikes be worth in 2029?

[Nicksey]

My own dealership here in Lincolnshire now has more BYD on the forecourt than Hondas, which does worry me a bit, considering how good a dealership they have been.
Off topic regarding auto manufacture.. but on topic with Chinese production. I am an avid birdwatcher, and use Zeiss binoculars. A renowned and well respected optics maker from Germany. High standards, with high prices. However, they have just started supplying a scope made in China. German design, pieced together in China. The price is a third of what it would be if still made in Germany. I bought one! I have a scope made in Japan too, which again this Chinese one was a third of the Japanese price. The quality is good, it is robust and has all the technical qualities of its rivals and also comes with a Zeiss 10 year guarantee. Zeiss said it was a way of keeping a high quality product but with competitive pricing.

[Jazzik]

The fact that your own dealership now has more BYDs on the lot than Hondas, does that mean to you that it's a less good dealership? That seems a bit strange to me...
I would say: more choice at that good dealer and an excellent opportunity to compare cars from both brands thoroughly.
Much better than our situation here: our dealer disappeared (without saying goodbye ), just like another dealer 42 km (26 mi) away. The nearest Honda dealer is now a bit far: over 130 km (81 mi). One way!
Oh, and the brand-new showroom of the BYD dealer in Torun is 3.5 km (just over 2 mi) from my front door, the workshop a bit further, about 11 km (almost 7 mi)!

[Nicksey]

The fact that your own dealership now has more BYDs on the lot than Hondas, does that mean to you that it's a less good dealership? That seems a bit strange to me...

Why strange?
My point is the dealership is putting less Honda on the forecourt, which seems to be a pattern that has seen other Honda dealerships close their relationship with Honda, and become another brand dealership. If this happens, will they still offer the same service to my Honda if they no longer are affiliated to the brand.

[Lincolnshire Rambler]

Nicksey , i hope our Honda garage does retain its Honda Franchise , especially in the light of Honda now offering an 8 year warranty! If you owned DM Keith you surely would see a chinese brand as good business to expand to cover . Some honda customers may switch to BYD but many honda owners wouldnt ,least in my view. 

[Nicksey]

I would like to think so LR. They have been a great dealership up to this point. I was concerned because of the lack of Honda marques on the forecourt, and it does seem a pattern developing elsewhere. I agree that it would be unlikely that they would abandon their Honda customers, and seeing as I still have two services left on my five year plan I will be keeping my fingers firmly crossed.

[Kremmen]

Reading this Which? report I get the impression they think China cars are sub-standard, not well thougbt out :

https://www.which.co.uk/news/article/what-exactly-is-the-jaecoo-7-and-why-is-it-so-popular-aepWk2H3hi0t

[Jazzik]

Just my opinion...
To start with, an important observation: There are no "China cars" just as there are no "Europe cars." Dozens of Chinese brands are now being imported into Europe. Lumping all those brands together makes no sense.

An example: In January, the Dutch Consumers' Association once again announced the results of the annual "car defect test."
The Consumers' Association conducted research into car defects together with nine other European parties. In total, the distributed questionnaire was completed by more than 50,000 Europeans. It concerns cars no older than ten years. The questions focus on problems that occurred with the car in the past year. In the latest study, breakdown statistics for some 300 different models from 39 car brands have been mapped out.
If a repair could wait, that accounts for 20% of the rating. If the car had to go to the garage immediately, that counts for 35%, and for 45% if the car could no longer drive. All results have been aggregated per brand and model.

The ten most reliable car brands according to the Consumers' Association
1 . Lexus – 8,9
2 .  Suzuki – 8,7
3 .  Toyota – 8,7
4 .  Subaru – 8,6
5 .  Honda – 8,5
6 .  BYD – 8,4 *
7 .  Tesla – 8,4
8 .  Mazda – 8,3
9 .  Kia – 8,2
10. Mitsubishi – 8,2

For many, the 8.4 that the BYD brand scored in this reliability test will come as a surprise. After all, "made in China" still carries a negative image. It turns out that this is not always justified.

The ten least reliable car brands according to the Consumers' Association
1 .  Land Rover – 4,3
2 .  MG – 5,9 *
3 .  Lynk & Co – 6,2 *
4 .  DS Automobiles – 6,2
5 .  Citroλn – 6,3
6 .  Peugeot – 6,4
7 .  Opel – 6,8
8 .  Ford – 7,1
10. Alfa Romeo – 7,1

* Chinese brand in the top ten most reliable.
* Chinese brand in the top ten least reliable.

The Germans are also positive about BYD:
General Reliability & Test Results
In the extensive ADAC Car Catalog, the BYD models released in Europe (such as the Atto 3, Dolphin, Seal, and Seal U) score solid to very good.

And then there is this: my last 5 cars were from 4 different brands (3 Japanese and 2 Korean). I have no attachment to a brand and always choose cars that best meet my needs at that moment.
Important criteria are reliability and, of course, cost. I find appearance less important, as long as it isn't an SUV with the shape of a shipping container. And which logo is on the bonnet is of no importance.

[Hicardo]

Its surely inevitable that China will gradually increase quality, support, longevity of their products. 

At this stage - they are easily competing on price which will win them sales.  In 3 years time, i suspect these vehicles will be better supported in terms of spares.  And in 5 years time, their prices will probably creep up as the businesses mature, and they need to focus on reliability and quality more. 

Harry's Garage on YouTube has a very interesting review of the Jaecoo 7 this week (a vehicle thats way too big for me to consider btw) and he (Harry) pretty much agrees that theyre off to a great start, and can understand why it is currently top of the sale charts in its sector (the plug in hybrid one for 36K)   

They are providing so much for so little outlay in comparison to established premium brands. Most people in UK don't seem to really care if it doesnt corner quite so flat as a Toyota, Audi or Range Rover, and if it might have a few software issues (for example) because if they take it back to the Jaecoo dealer to be fixed, the dealer will give them another car until theirs is ready, or if they have to wait for a spare part. 

Looks are a big thing (apparently) and a lot of people cant believe they can get something as big and cool as a Velar with better reliability, already,  for 1/2 the price.  It even has a Land Rover lookalike steering wheel.  All this means absolutely nothing to me, I'd rather drive my Honda Crosstar, but i definitely DO see why they're selling extremely well already.  The Lease and PCP deals are nothing short of amazing for the Jaecoo 7 for example.

It will waken the market up for sure.  Wonder what will happen with the pricelists of Japanese and European cars particularly.

Honda will surely have to do some Chinese partnerships to remain competetive.  Its worked for Tesla.