Chinese automakers have surpassed their Japanese counterparts in global vehicle sales for the first time, marking a significant shift in the global automotive industry, according to a recent report by Nikkei.

The report said that total global sales by Japanese automakers fell slightly to around 25 million units in 2025, causing Japan to lose its long-held top position for the first time since 2000. Meanwhile, Chinese car manufacturers recorded nearly 27 million units in global sales last year, rising to the top spot worldwide.

The conclusion was based on data released by major automakers and research conducted by automotive data platform MarkLines, Nikkei said.

Among individual companies, BYD surpassed Ford to rank sixth globally in 2025, while Geely overtook Honda to secure the eighth place, the report said.

Six Chinese automakers entered the global top 20 rankings, including Chery, Changan Automobile, SAIC Motor, and Great Wall Motors, outnumbering Japan's five.

In the electric vehicle segment, BYD also exceeded Tesla to become the world's leading EV seller, it added.

Tang Jin, a senior researcher at Japan's Mizuho Bank and an expert in the automotive sector, noted that China's rise to the top is more than a simple change in rankings. It signals a restructuring of the global automotive landscape, driven by China's strengths in advanced technology, cost efficiency, and rapid research and development.

He added that Japan needs to reassess its strategies in vehicle electrification and global market positioning in response to the evolving competition.