Why was only the new Camry able to enter the top 10 in the Chinese market? 5 strategies for Japanese cars to survive?

Japanese cars are struggling in the Chinese market.
Amidst this, why was only the Camry able to maintain its presence? There, Toyota's "survival strategy" becomes visible.



▶︎ Looking back at history

In China, "sedan" used to be a "symbol of success."

The Camry was the prime example of this, adopted by many business executives and as an official government vehicle, and supported as synonymous with high quality and high durability.

However, the situation changed completely entering the 2020s.

Chinese manufacturers like BYD, Xiaomi, Geely, and AITO grew rapidly in EVs and PHEVs, surprising the world with price competition and digital equipment.

While many Japanese sedans disappeared from sales rankings, the Camry still managed to break into the top 10 at times, maintaining its presence.

So, why was only the Camry able to survive?



▶︎ 3 Scenarios

Scenario 1: "Trust in quality" remained until the end

Chinese manufacturers are rapidly improving quality.

Even so,

・Peace of mind for long-term use
・Few breakdowns
・High resale value

Trust in Toyota remains strong in these areas.

"If you're going to drive it for 10 years, Toyota"

This value remains among a certain user segment.



Scenario 2: Boldly evolved for the Chinese market

This Camry was not just brought over from the Japanese specifications.

For China,

・Large display
・Digital cockpit
・Smart connected features
・Powerful front design

and other features were enhanced to match the preferences of Chinese users.

"If you're going to sell in China, adapt to Chinese customers."
Toyota made that stance clear.



Scenario 3: The realistic solution of HEV, not EV

EVs are spreading rapidly in China.

On the other hand,

・Frequent long-distance travel
・Not wanting to worry about charging time
・Anxiety about battery degradation

Considering these, there are many consumers who choose hybrids.

The Camry became a realistic option that is "neither an EV nor a gasoline car."

5 Whys Analysis

Why was the Camry able to enter the top 10?



Why 1

Trust in quality was high.

↓
Why 2

It had a track record not just in brand, but in durability.

↓
Why 3

Product development for the Chinese market was strengthened.

↓
Why 4

Local needs were actively incorporated.

↓
Why 5

Shifted to a strategy of creating "products to win in China" rather than selling "globally common products."

Here, we can see Toyota's change.
▶︎ Implications for investors and business people

The success of the Camry is not just about cars.


When the market changes,

"methods that succeeded in the past"

are not enough to win.

On the other hand,

there is no need to throw everything away and chase trends.

Toyota,

・Quality

・Reliability

・Hybrid technology
while keeping these strengths, it changed the design and digital experience to match the local market.
In other words,

it identified "what should be changed" and "what should not be changed."

This is likely the condition for surviving in a highly competitive market.

Future Outlook

In the future, the EV/PHEV competition in the Chinese market is likely to intensify further.

For Toyota to maintain its presence in that,



・Software development

・AI/Connected services

・Collaboration with Chinese companies

・Rapid response to local needs
will become more important than ever.
The Camry's strong performance showed that "Toyota can still fight," while also suggesting that the next competition will shift not just to the car itself, but to software and user experience.
One quote to conclude

“The secret of change is to focus all your energy not on fighting the old, but on building the new.”

"The secret of change is to focus all your energy not on fighting the old, but on building the new." — Socrates (attributed)

Supplementary Note
Main features and differences from other regional specifications
1. Interior
Electrostatic touch panel air conditioning controls
Unlike the physical switches found on North American panels, a flat electrostatic touch panel is placed under the center display to create a sense of advancement.
Smart infotainment co-developed with Huawei

The Chinese-spec in-vehicle system incorporates the Qualcomm Snapdragon 8155 chip and Huawei technology, significantly enhancing voice recognition and app responsiveness.
2. Exterior


Front face (Hammerhead design)
In the Chinese market, multiple front masks are lined up, including not only the sporty mesh grille specification (XSE/Sports package series) but also the more elegant and clean integrated grille specification (LE series, etc.).
3. Powertrain configuration

The 9th generation Camry for the Chinese market is also characterized by the addition of a 2.0L hybrid (5th generation THS) and a 2.0L gasoline engine to the conventional 2.5L hybrid (HEV) to keep the price range down, which is a region-specific feature.